Thread by @saxena_puru

1) Thoughts on SaaS -

The economic freeze will affect some (not all) software firms, especially those which have heavy exposure to the most affected industries (aviation, energy, hotels, restaurants etc) but 'stay at home/work from home' is also benefiting other firms...

2)...Companies such as Slack and Zoom have already announced that their business is booming and my latest correspondence with a cybersecurity firm also suggests that it isn't seeing any slowdown in business.

Due to the economic freeze, it is inevitable that most software...

3)...firms will see slowdowns in their blistering growth rates and some may even see marginal revenue contraction (due to customer churn, lost seats, delayed payments etc).

However, I still believe that these companies are much more resilient than the others and their...

4)...business will be the least affected.

Remember, in this unprecedented period, many companies aren't generating any revenue; so investors may still view the marginal contraction in software revenues favourably.

In any event, there can be no disputing the fact that...

5)...software keeps companies' data secure and saves them both time and money. Therefore, when the economy reopens and things normalise, digital transformation will resume in earnest.

After all, every company on the planet (if it wants to compete in this era) needs software...

6)...and unless businesses go bankrupt, they won't just stop using these offerings.

For sure, the software firms will need to make concessions and accept payment deferrals, discounts etc. and this may impact near-term operating results.

However, over the...

7)...long run, demand for cloud based software will remain robust.

As far as the near-term macro headwinds and software stocks are concerned, I'll just end with this idiom -

"In the land of the blind, the one-eyed man *may be* king".

The end.