Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Friday, June 26, 2020

Q2.2020 - Domo Looks More Convincing Now

  • Domo saw a strong Q1. Revenue grew by 19% despite 9% opex cut, highlighting a solid go-to-market execution and a proven offering.
  • The better-than-expected renewal rates despite the $35 million cost-cutting plan mean there is room for more margin expansion.
  • Domo is fairly priced. We will upgrade the stock to overweight with a price target of $37.

Domo (DOMO) looks much more convincing today than last August when we covered the stock the first time. Since then, shares price has been up ~36% as fundamentals have improved. The solid growth despite the decrease in cash burn in Q1 is a sign that the company has fully overcome the go-to-market issue. Given the potential upsides this year driven by the margin expansion and the seemingly successful go-to-market revamping, we will upgrade Domo from neutral to overweight.

Read the original article here

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