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Wed, Aug. 6, 4:49 PM
Fri, May. 30, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
Wed, May. 7, 4:58 PM
Thu, Apr. 3, 3:57 PM
- Today's rout in tech momentum names (the latest in a string) has been especially harsh on enterprise cloud software, security, and big data/analytics plays.
- Major cloud software decliners: NOW -11%. WDAY -9.6%. N -6.5%. CNQR -7.2%. SAAS -6.3%. TXTR -6.3%. ULTI -5.5%. DWRE -8%. MKTO -6.2%. CSLT -9%. RALY -7.2%.
- Salesforce (CRM -4.1%) is following the group lower after announcing plans to offer industry-specific cloud software solutions. Pac Crest thinks Salesforce's top-line will benefit, but is cutting its EPS estimates on margin concerns.
- Security decliners: FEYE -10.3%. PANW -8.2%. KEYW -5.7%.
- Big data/analytics decliners: DATA -7.4%. SPLK -6.9%. QLIK -4.1%. Splunk's selloff comes in spite of a two-notch CLSA upgrade to Outperform.
Thu, Jan. 30, 4:05 PM
Thu, Jan. 30, 1:16 PM
- Much as consumer Web plays are rising in sympathy with Facebook, enterprise cloud software names are sharply higher after cloud IT service desk software leader ServiceNow (NOW +14.3%) beat Q4 revenue estimates, provided very strong guidance, and reported its deferred revenue/backlog balance rose 59% Y/Y.
- Salesforce (CRM +5.5%), Workday (WDAY +5.4%), NetSuite (N +6.2%), Textura (TXTR +9.8%), Cornerstone OnDemand (CSOD +3.6%), Jive Software (JIVE +3.4%), Ultimate Software (ULTI +3.4%), InContact (SAAS +3.9%), Tangoe (TNGO +3.7%), and LivePerson (LPSN +5.4%) are among the winners.
- Baird has upgraded ServiceNow to Outperform, and several other firms have upped their PTs. Raymond James (Strong Buy) praises ServiceNow's efforts to expand into complementary markets such as HR automation, grow both its packaged and custom app sales, and to keep taking share from on-premise IT service desk vendors such as CA, BMC Software, H-P, and IBM.
- On the CC (transcript), CEO Frank Slootman mentioned ServiceNow's installed base has grown to 2,060 accounts and 400 global 2000 customers. That's up from 1,900 and 360 three months earlier.
- He added 80% of customers are now deploying custom apps, and that 20% of the annual contract value recorded in Q4 involved products other than tradition IT service desk licensing.
Wed, Jan. 15, 5:39 PM
Tue, Jan. 7, 11:07 AM
- Textura (TXTR -2.8%) shares slip in response to part 2 of a Citron series that places a "generous $4 target" on the stock.
- The new piece makes a number of allegations of "fraudulent disclosures" relating to CEO Patrick Allin's past.
- Part 2 goes on to lambast William Blair, Credit Suisse, and Barrington Research, all firms who came to Textura's defense following the original Citron report.
- Regarding fundamentals, Citron postulates that to break even, Textura would "have to grow their revenue to 246% of 2013 revenue levels, while not increasing any expenses." Meanwhile, Textura's expenses in 2013 are "now [at] the levels the analysts expected them to spend, not in 2014, but in 2015."
- Left calls Textura a "pretender in the SaaS space," with indiscernible organic growth, misleading market penetration statistics, negative leverage, and a string of poor acquisitions that amount to P/S arbitrage.
Mon, Jan. 6, 3:11 PM
- Textura (TXTR +4.5%) shares may be getting a bit of an extra lift after Barrington adds the name to its best ideas list.
- TXTR is continuing to recover as sell-siders come to the company's defense following a scathing Citron piece. Shares are up 9.6% from lows notched last week but down 13% from levels before Citron took aim.
Dec. 30, 2013, 1:26 PM
- Textura (TXTR +2.3%) shares are gradually recovering a bit of the losses they suffered after a scathing report was released on the name by Citron Research last week (I, II), with Credit Suisse's Michael Nemeoff adding to the sell-side's defense of the company (William Blair defended TXTR last week). The firm reiterates an Outperform rating and $50 PT.
- "After thoroughly reviewing the profanity-laced report, we see no merits to any of the ‘work’ and advise investors to continue to purchase shares of TXTR. We believe the report alluded to incorrect innuendo and false assumptions that suggest TXTR management misled investors, which we believe to be untrue [...] We base our opinion on our own research, performed over the last few days, as much of the innuendo that suggests impropriety is based on publicly available information that anyone can find using Google," Nemeoff writes.
Dec. 26, 2013, 4:07 PM
- Textura (TXTR -17%) has responded to Citron Research's report with a short PR that declares the report to have "a variety of inaccurate and misleading statements and gross distortions." The construction software firm adds it "completely rejects any allegation of fraud, collusion or deception in Textura's IPO or SEC filings."
- Shares didn't get much of a lift from the response, and would up closing at their lowest levels since mid-November. They remain up 109% from a June IPO price of $15, and 30% from their opening trade of $24.
- Citron's allegations: I, II. The report.
Dec. 26, 2013, 12:45 PM
Dec. 26, 2013, 11:54 AM
- In its Textura (TXTR -14.9%) report, Citron Research notes the company removed statements in its S-1 boasting of "high client retention" and "growing demand from our increasingly multinational clients" after being asked by the SEC to substantiate its claims.
- Citron also observes CEO/co-founder Patrick Allin was once the CEO of CPFS, a company that traded on the pink sheets and which (according to FINRA) had no revenue and minimal assets, and that Allin's counterpart in transactions carried out by CPFS is in prison for charges related to stock fraud.
- Citron also asserts: 1) One of the selling shareholders in Textura's IPO (ACPP Capital) is owned by individuals associated with underwriters William Blair and Barrington Research. 2) 62.8% of Textura's revenue comes from a payment management app that is "nothing more and nothing less than a utility software program to manage the submission of signed Lien Waiver forms." 3) Textura has limited visibility into future sales, since subcontractors using its software have no need to subscriber once a project is finished.
- Previous: Textura plunges following harsh Citron Research report
Dec. 26, 2013, 11:18 AM
- A Citron Research report (.pdf) levying a variety of fraud and misconduct allegations at Textura (TXTR -12.6%) has led shares of cloud construction software provider to nosedive.
- Among other things, Citron accuses Textura, which went public in June, of lying in its S-1, failing to disclose management/employee ties to an OTC stock whose promoters are now in jail, generating considerable revenue from related party referrals (the firm thinks this could produce restatements), and exaggerating business metrics to "confuse investors."
Nov. 26, 2013, 12:39 PM
- Workday (WDAY +12.8%) has caught an upgrade to Outperform from Baird, as well as a few PT hikes, after beating FQ3 estimates, issuing strong FQ4 guidance, and reporting an acceleration in unearned revenue growth.
- Shares are close to their all-time high of $84.42. Several other enterprise cloud software names are also moving higher: NOW +4.2. IL +3.3%. N +1.5%. TXTR +2%. JIVE +1.8%.
- Workday mentioned on its CC (transcript) it added over 50 customers in FQ3, including eight Global 2000 clients and ten buyers of its Financials software (still a much smaller part of Workday's business than its HR software). Total customers are now above 550.
- The weighted average duration of new contracts was 3.4 years. Workday typically collects a little over a year of the contract value up-front, and then recognizes it as revenue a quarter at a time (the rest goes into unearned revenue)
- Also: 1) Subscription and professional services gross margins rose 122 bps and 432 bps Q/Q, respectively. 2) Headcount rose to nearly 2,400 from 2,120 at the end of FQ2. 3) Billings are expected to be down Q/Q in seasonally weak FQ1.
- Jefferies has raised its PT to $92. The firm praises Workday's customer adds and Financials momentum, and declares the company "has amongst the most attractive share gain potential in software."
Nov. 22, 2013, 4:05 PM
- Shares of Textura (TXTR -7.4%) fell after the company posted a mixed FQ4 but hiked full-year guidance. Investors may have speculated for more, having sent shares up 9.6% yesterday before results were announced.
- Management expects FQ1 revenue of $11.7M-$11.9M (vs. consensus of $11.8M), representing Y/Y growth of 72%-75%. FY2014 guidance has been hiked to $57.5M-$60.5M from $55M-$58M (and vs. consensus of $56.7M), representing growth of 60% to 70%.
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