Read on Twitter
Going to do a tweet thread about $AI
This is an IPO that reminds me of the old ways of doing IPOs. Where the buyer could potentially see price appreciation.
Share price is $37
This is an IPO that reminds me of the old ways of doing IPOs. Where the buyer could potentially see price appreciation.
Share price is $37
Potential shares outstanding would amount to about 95M
This would leave the company at a market cap of 3.5B dollars
This would leave the company at a market cap of 3.5B dollars
At a TTM revenue of 157M this would leave the company with a price to sales on a TTM basis of about 22. Not cheap, but not unreasonable given the sky high valuations currently had by far more mature companies.
What is $AI and why is this company so interesting to me?
It's an enterprise AI company
They provide rapid scale AI applications on a SaaS model
In addition to their AI Suite, individual apps on the suite they offer a no-code solution that enables simplified data science
It's an enterprise AI company
They provide rapid scale AI applications on a SaaS model
In addition to their AI Suite, individual apps on the suite they offer a no-code solution that enables simplified data science
Besides the buzzwords, what interests me about this company? Decreasing Sales Cycle, Increasing Growth, Huge TAM, and strong management
Start with the sales cycle. It's improving despite the high $ value targets this company chases.
Start with the sales cycle. It's improving despite the high $ value targets this company chases.
The growth really took off last year:
I'm a big fan of using Absolute Values instead of percentages. Here are the absolute growth dollars.
17-18 29M
18-19 30M
19-20 65M
I'm a big fan of using Absolute Values instead of percentages. Here are the absolute growth dollars.
17-18 29M
18-19 30M
19-20 65M
What's the TAM?
Between Gartner and IDC estimates, manage believes it at 174B to 271B by 2024.
Between Gartner and IDC estimates, manage believes it at 174B to 271B by 2024.
Management is also exciting.
Tom Siebel is experienced and has a proven record first with Oracle, then with Siebel systems. You couldn't ask for better founder led management, and the culture is phenomenal according to Glassdoor.
Tom Siebel is experienced and has a proven record first with Oracle, then with Siebel systems. You couldn't ask for better founder led management, and the culture is phenomenal according to Glassdoor.
A quick look at the risk factors and I didn't see any major red flags. I did notice that they are really started pouring resources into S&M during 2020. However the results really showed by the explosive revenue growth.
I haven't done all of my normal due diligence on the company, but they've moved to the top of my list for IPOs to research.
Yes they face very strong competition, but the fact that Microsoft is investing in them, may be telling to the strength of the offering.
Yes they face very strong competition, but the fact that Microsoft is investing in them, may be telling to the strength of the offering.
