Bear, I’m curious how you arrived at your decisions on which companies to add shares/allocation.
Ok, I’ll try to answer your questions.
You sold OKTA because you say it’s “expensive”. TTM EV/Sales at about 24, TTM growth in the low 50s, and 83% GMs. It’s also completely dominating its category. It’s also been improving Operating Margin.
Actually OKTA revenue only grew 49% last quarter. With an EV/Sales of 24, it’s relatively pricier than most of my others, which are growing revenue much faster (59% last quarter for AYX, 58% for ESTC, 62% for PINS, and even faster for TWLO, DDOG, and CRWD).
ESTC is growing faster (mid 60s) with 80% GMs and has a lower TTM EV/Sales at around 17 but profits are no where in sight…they sure are spending a lot.
Yes, they’re growing a lot faster than OKTA and they’re much cheaper by PS or EV/S.
DDOG has the highest TTM EV/Sales ratio of them all at around 37, 75% GMs and growth of 82%.
Pricier but growing 60% faster than OKTA! But this is my smallest and least confident position.
SMAR is growing in the high 50s (consistently for a year) with 81% GMs but profitability seems farther away.
I don’t care so much about when a company is likely to become profitable. I care that they can get there. Smartsheet knows what they’re doing. Growth has been very consistent at over 50%, and the PS ratio is currently below 20.
Let me know if that helps or if you have other questions about why I did what I did. The bolded statement above is probably the main answer to what I think you’re asking. I’m not concerned with how far a company is from profitability as long as I see them getting there easily.
Bear