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.

Wednesday, June 17, 2020

Q2.2020 - Splunk: Cloud Shift Can Accelerate Growth Even More

  • Without the cloud shift, Splunk is already a deep-moat software company with an impressive ~$2 billion ARR that grows +40%.
  • The cloud shift, which enables a higher-velocity sales process, can accelerate growth even more.
  • The cloud free-trial model also enables more effective user journey tracking and analysis, which allows for better pipeline visibility and a more contextual lead qualification process.
The leader in the enterprise log management, Splunk (SPLK) is one of the few companies in the software space we have liked for some time due to its resilient and fast-growing business. Having landed over 90 of the Fortune 100 companies as its clients so far and reaching over $2 billion of annual revenue last year, the company will turn to the SaaS model to accelerate growth further. Upon the complete transition into SaaS, Splunk will benefit from a higher-velocity customer acquisition process and better pipeline visibility as opposed to its historical contract-based model. We will maintain our overweight rating on the stock.

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