market folly

We're posting up notes from the Sohn San Francisco 2018 investment conference.  Next up is Marcelo Desio of Lucha Capital Management who pitched a long of Talend (TLND).

Marcelo Desio's Sohn San Francisco Presentation: Long Talend (TLND)

Company

•    Pitched long Talend (TLND) which helps companies integrate and manage data from disparate sources and across a wide variety of environment
•    Leading platform that is in the perfect spot to help companies manage data explosion

Thesis

•    Believes that data explosion becoming a major problem for companies as historical on-premise solutions for data management no longer workable
•    Strong secular trends showing increase in data creation (10 fold rise in data by 2025), 3x growth rate of data experts by 2020, $205Bn spend in public cloud in 2020
•    Large addressable market = $23Bn
•    Gross Margins: 79-82% long term target
•    Operating Margins: 20-22% target
•    Strong recurring revenue, over 2000 customers
•    Disruptive pricing model by charging on a user basis versus legacy models of charging by data volume
•    New enterprise GTM model leveraging free products and trials, 3M downloads, 500k+ online community and outbound marketing = qualified leads
•    High quality board and management
•    Price target = $105, 70% upside from current price of $58 (Based on 6.5x EV/revenue on CY21 revenue estimate)
•    Takeout acquisition candidate at a much higher potential multiple based on comps


Be sure to check out the rest of the Sohn San Francisco 2018 presentations.