Thanks for the ESTC update. A few comments.
The expenses rising faster than revenue doesn’t overly concern me at this point due to ESTC having most of their revenue as SaaS revenue. I wish we had quarterly customer counts going back further (i looked but couldn’t find any numbers) because then we could trend their implied CAC (customer acquisition cost) by takings Sales and Marketing expenses and dividing that by the quarterly adds in customer count. If the CAC was dramatically increasing I would be more worried. Just a reminder for others reading this post. SaaS customers will lose more money the faster they are growing until they get pretty big because their expenses to acquire the customer (their CAC) are recognized immediately but the revenue from that customer is recognized over the length of that contract. This is a simplification but good enough for understanding the business.
The SBC was a bit of an eye popper. I’m wondering if a bunch of SBC was tied to completing the IPO or the swifttype acquisition? Definitely worth watching that one.
re: Phoolio, weighted average shares. Just to jump on what chris said. They had something like 30 million shares pre-ipo. They did their IPO and ended up with 70 million shares. They calculate the eps based on the percentage of time during that period they were at 30 million shares and 70 million shares…i.e. they weight it. My numbers might be a little off, but the concept should be right.
-e