TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Thematic (Sector/Industry)

<ul>
<li>We like ServiceNow into earnings. Strong 4Q21 results poised to continue, positive earnings revisions and negative stock action makes this a safe large cap bet.</li>
<li>Facebook intrigues us...incredible potential risk/reward if you think this company shouldn't trade at 10x forward EV/EBITDA. Lots of fear on the name, but reacceleration of revenues and earnings coming.</li>
<li>Don't like the Paypal or Intel setups. Paypal's CFO departure signal he thinks shareholder returns will be weak in the next year or two. Believe him.</li>
</ul>


We like ServiceNow into earnings. Strong 4Q21 results poised to continue, positive earnings revisions and negative stock action makes this a safe large cap bet.
Facebook intrigues us...incredible potential risk/reward if you think this company shouldn't trade at 10x forward EV/EBITDA. Lots of fear on the name, but reacceleration of revenues and earnings coming.
Don't like the Paypal or Intel setups. Paypal's CFO departure signal he thinks shareholder returns will be weak in the next year or two. Believe him.


Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>Sequoia Capital India, one of the key shareholders of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. </li>
<li>According to SEC filings, venture capital firm acquired ~5 million <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares at an average price of <strong>$17.38</strong> per share. </li>
<li>We believe that strong insider buying may indicate a bottom in <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  stock after significant multiple compression in the technology software sector. </li>
</ul>


Sequoia Capital India, one of the key shareholders of Freshworks (FRSH US) , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. 
According to SEC filings, venture capital firm acquired ~5 million Freshworks (FRSH US)  shares at an average price of $17.38 per share. 
We believe that strong insider buying may indicate a bottom in Freshworks (FRSH US)  stock after significant multiple compression in the technology software sector. 


Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

<ul><li>ServiceNow was among the high-growth tech stocks that got battered by rising interest rate fears but the company’s share price has recovered.</li><li>While their strong cash position allows ServiceNow to remain flexible on the acquisitions front, they have a strong organic growth strategy given the strong demand for digital transformation among its customer base.</li><li>Despite the recent recovery, we are optimistic about ServiceNow and give the stock a 'Buy' rating with a revised target price.</li></ul>

ServiceNow was among the high-growth tech stocks that got battered by rising interest rate fears but the company’s share price has recovered.While their strong cash position allows ServiceNow to remain flexible on the acquisitions front, they have a strong organic growth strategy given the strong demand for digital transformation among its customer base.Despite the recent recovery, we are optimistic about ServiceNow and give the stock a 'Buy' rating with a revised target price.

<ul>
<li>Blowout 4Q21 results headlined by (adjusted) 38% subscription billings growth - unbelievable for a company this size. </li>
<li>Generated a Rule of 75 Quarter (29% revenue growth + 46% FCF margins)</li>
<li>Multi-Module adoption continues to ramp, large deal sizes continue to ramp. At 12x forward revenues...incredible entry point.</li>
</ul>


Blowout 4Q21 results headlined by (adjusted) 38% subscription billings growth - unbelievable for a company this size. 
Generated a Rule of 75 Quarter (29% revenue growth + 46% FCF margins)
Multi-Module adoption continues to ramp, large deal sizes continue to ramp. At 12x forward revenues...incredible entry point.


<ul>
<li>IOT data platform meant to digitize physical operations for manufacturing, transportation, construction, utilities, healthcare, and education. </li>
<li>Excellent management team, previously co-founded Meraki, which was sold to Cisco.</li>
<li>Hypergrowth software business on par with ServiceNow and Workday at this stage in growth, but much less profitable (so far) due to hardware and bandwidth costs.</li>
</ul>


IOT data platform meant to digitize physical operations for manufacturing, transportation, construction, utilities, healthcare, and education. 
Excellent management team, previously co-founded Meraki, which was sold to Cisco.
Hypergrowth software business on par with ServiceNow and Workday at this stage in growth, but much less profitable (so far) due to hardware and bandwidth costs.


United States

ServiceNow, Inc. provides enterprise information technology (IT) management software. The Company designs, develops, and produces prepackaged computer software, cloud services, and IT service management platform. ServiceNow serves customers throughout the United States.

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Servicenow Inc (NOW US)

TMT Pre-1Q Earnings Thoughts

Some thoughts about potentially good earnings setups (ServiceNow and Facebook) vs. not so good setups (Paypal and Intel) for the first wave of TMT...

Aaron Gabin

Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

We maintain our bullish view on Freshworks and see notable insider buying as a strong interest among key shareholders, including Sequoia Capital India

Andrei Zakharov

ServiceNow Inc: Investment Thesis

ServiceNow was among the high-growth tech stocks that got battered by rising interest rate fears but the company’s share price has...

Baptista Research

ServiceNow: The Platform of Platforms

One of the highest quality SaaS companies with an enormous runway of 25-30% growth ahead of it for years, with 20%+ operating margins and 30%+ FCF...

Aaron Gabin

Recent IPO Insights: Samsara

Hypergrowth IOT data platform meant to digitize physical operations for manufacturing, transportation, construction, etc. Key dynamic is high FCF...

Aaron Gabin

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