To access the REPLAY of our 12/3 Best Idea Long call on CLDR, CLICK HERE.
Remember the good ole times when the threat of AWS encroachment meant you could Short any on-premise or hybrid stock? Despite our tongue and cheek, we actually think that premise is still alive in many cases. But in the case of CLDR, which one sly writer noted would not have a ‘cloud era’ and ironically has been a good Short as it gets disrupted by the cloud, the future actually may not be Short-able. The net expansion rate is more robust than feared, the new logos being captured are solid, the architecture pivot mentioned on the call would scare me if I were short, and the company is executing on the transition to profits and cash. Is it possible that this company will do 15-20% growth in 2020 with over 15-20% OCF margins implying ~$200MM+ FCF?
Please call or e-mail with any questions.
Ami Joseph
Managing Director
Yosef Vaitsblit
Analyst