No. of Recommendations: 28
The headline number is that subscription revenue is up 69% compared to Q1 last year. I think the more impressive feat is that the subscription revenue is up 20% from the last quarter going from $75M to $90M. Quarterly subscription revenue growth for the last 4 quarters is Q2 2018 – 22.6%, Q3 2018 – 2%, Q4 2018 – 14% and now Q1 2019 - 20%. Given their retention rate of 156%, I think their Q2 guidance of $92-93M for subscription revenue is pretty conservative as it is only 3% growth from this current quarter. Also, their full year guidance assumes average quarterly subscription revenue of $97.3M for the next 3 quarters. I think they are setting the bar low to be able to easily exceed earnings this year. Given the accelerating subscription growth, the dollar retention rate of 156%, the improving margins as subscription revenue becomes a higher percentage of overall revenue and the large TAM, I am very happy to hold this stock for a long time.

Thanks to SteppenWulf for all his time laying out the bull case for PVTL and MDB! Getting his insight from a user’s perspective was extremely valuable for me in taking positions in both stocks.
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