This quarter’s results are pretty awesome, and I am thankful that at least, our Longs are working. Our thesis on Anaplan was to be Long Acceleration (link HERE) and we got it.
Today’s action puts the stock at / near our near-term price target. We need to get a good look at the filing for modeling purposes. The category is so large, and strategic position of Anaplan so alluring, that we are keeping this on the Long side until we can get deeper and understand a potential long-term price target.
If there was one little twinkle in the results it came on the call when the CEO bragged that the top 25 customers had an average net expansion rate of 200%. Just doing the raw math, it implies everyone else was at 103%, a ‘not so hot’ territory and certainly well less than guidance at 120%. While this does feel like a ‘gotcha’ data point, we recognize that Anaplan is being driven by a small number of gargantuan wins and that widening the circumference of top accounts is both of prime importance but also obviously well possible when considering the wider list of greater than $250k ARR customers.
More at a later date…
Please call or e-mail with any questions.
Ami Joseph
Managing Director
Yosef Vaitsblit
Analyst