No. of Recommendations: 6
First, I’d say that where a company is on its trajectory is important. For instance, Mongo is just starting out and has only about $200 million in revenue this last year. That’s tiny and very early....

Best illustrated by the "S" curve (trajectory) and market penetration (tiny and early).

Fourth, basing forward EV/S on guidance and consensus estimates is… well, to be gentle...

I'd be happy if they got rid of guidance altogether. As for "consensus" estimates, they are not a consensus at all but an average of various guesses no better than yours and mine.

What counts for me are revenue growth and improving margins, gross, operating and net. These are the numbers that drive price in the long run.

Denny Schlesinger
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