muji @ hhhypergrowth Profile picture
Hypergrowth investor doing research into the tech behind the SaaS. -muji
wz Profile picture Lado Gurgenidze Profile picture Jill Evarts Profile picture Andy Gardner Profile picture sarath botlagunta Profile picture 7 added to My Authors
19 Feb
An investment strategy: buy and forget
Another: buy and shift (from low to strengthening convictions)
Another: actively trade a well understood core
Another: actively trade market / momo
Another: bungle around just jumping on tips

(I am “buy and shift”)
A concentration strategy: widely diverse port
Another: concentrate to highest of diverse convictions
Another: heavily concentrated into conviction (under 12)

(I am “heavily concentrated”)
Selection strategy: pick specific themes or industries or sec trends to ride
Another: deeply understand a concentrated core
Another: use a selection service or trading platform
Another: pick an open guru and follow blindly

(I am “deeply understood core” in “specific themes”)
Read 6 tweets
18 Feb
I am not impressed with $FSLY's performance or mgmt ... yet again.

Rev +40%, decelerating -4pp YoY. That isn't the issue; they are usage based and bounce around.

But it's their first Q of SigSci -- adj out the $6M (an analyst had to wiggle out in Q&A), and they grew 30%.
Sorry, but for my rules, 30% rev growth is NOT hypergrowth.

Looking forward, guidance for Q1 was 32-36% YoY growth, but again adj out SigSci's expected 8M, and it's really 19-24% YoY. Terrible! Clearly no Compute@Edge contribution either.
Customer growth was +20% and enterprise custs slower at +12% (+3.5% seq). This is where I see the fracture in execution - you cannot scale if you aren't intaking new custs at a rapid rate.

Good news here: A new CRO was hired, hopefully to correct this.
Read 9 tweets
2 Jan
Resolution: Greatly improve the security and privacy of the network traffic from your home network and device, with a few simple steps.

I follow @Cloudflare for their enterprise solutions, but they help us consumers out too. And a lot of it is free.

A thread... /1
The content of your web traffic is encrypted (HTTPS) - but your ISP can still see what domains you are calling. Help protect your web requests by using 1.1.1.1 (fast & secure DNS resolver), and 1.1.1.1 for Families (block known malware sites, or malware + adult content). /2
It's easy to switch your entire home network to it. Change your router's DNS lookups to 1.1.1.1/1.0.0.1 (or 1.1.1.2/1.0.0.2 for malware block, or 1.1.1.3/1.0.0.3 for adult content block). See setup instructions on developers.cloudflare.com/1.1.1.1/
/3
Read 14 tweets
27 Oct 20
Lots of folks brooding about $FSLY and asking my take over past week. My take is... “I want more info”. I am not one to rush decisions, and want to see what earnings shows on Wed before deciding. /1
Basically Fastly proved it is mortal. Rev will be at the 42% they just pegged it at (the Q in question already ended) which is right back in the high end of the range it was bouncing around at pre-pandemic. /2
They have always had a volatile top line that waxes and wanes, so is nothing new. Just a bit jarring after the huge tailwind of last Q. And this does not factor much into their future potential and long term success. /3
Read 8 tweets
13 Oct 20
Today’s new One feature is a bigger deal than I thought it’d be from yesterday’s teaser. Bold moves that are understated from the headline. Cloudflare just took a big step into ‘s lane. /1
They are angling Access to be an SSO, not only accessing internal apps via Zero Trust (like ZPA), but also for all the other SaaS apps your enterprise uses. (Which up til now was solely the purview of the Gateway secure web gateway side.) /2
They are not eliminating . They will work with them and a wide variety of other identity providers, including multiple simultaneously. But after relying on Okta and others for establishing identity, they take over SSO to any enterprise apps from there. /3
Read 8 tweets
12 Oct 20
The market sure in love with $NET today in realizing they are a $ZS competitor. Some of us have known this was coming since... uh (checks notes).... February.

Let’s refresh on a few past tidbits.... /1
“Sound familiar? It turns out Cloudflare is now a direct competitor to Zscaler. ... This new product line, Cloudflare for Teams, is a carbon copy of Zscaler.” - me back in Feb /2

hhhypergrowth.com/a-cloudflare-d…
The thing to watch now... they didn’t charge for it til Sept 1. (Very nice of them to help out in the chaos of pandemic.) This Q will have Teams contributing 1 month, while Q4 will have a full Q ... as mentioned in my recent Edge Network writeup. /3
hhhypergrowth.com/what-are-edge-…
Read 6 tweets
12 Oct 20
The Friday scoop from Forbes played out. $TWLO acquired Segment, a “customer data platform” startup. This adds integration tools, ingest pipelines, customer vision, and analytics into Twilio stack. /1
Lawson really clarifies what they went after: “Communications was just the entry point for the real opportunity, which has been really providing a comprehensive platform for customer engagement....”. /2
“... The one thing that’s always been missing from Twilio as we’ve been building up this customer engagement platform is understanding of the end users themselves. We power the communications, but we don’t actually know who the customers are.” /3
Read 10 tweets
30 Sep 20
A quick take on Palantir $PLTR - not interested in the least. What ultimately rules it out for me is how few customers they have, and hard it is to implement as a new customer. Yes, recent growth has spiked to 42% but 2019 ARPU growth was 8%. It's all about landing new custs.
It can take $1M+ just to implement! Palantir more resembles a services org for analytics & data enrichment (from intel sources), than an enterprise SaaS platform. So think of Palantir more as IBM or SAP (services over their analytics platform), not Databricks or Alteryx.
Difficult to find anything about their underlying architecture. Their current web page on it, today, points to a 2012 Youtube video. Any info I can find is typically from 2012-2017, like these diagrams. Look how complex it is. (Quite clear in how difficult implementation is.) ImageImage
Read 8 tweets
28 Sep 20
enhances Workers w stateful objects. This opens a huge new use cases for app dev. blog.cloudflare.com/introducing-wo…. Blog post from @KentonVarda does a good job in showing its potential in laymen’s terms. This is pretty exciting from a developer stand point. /1
This is way more impactful than the “edge db” I was guessing (a stateful data store). This is stateful OBJECTS — instead of having a shared db across Worker instances, the Worker instance itself is what is shared. /2
Basically, shared objects can be maintaining state as a mini in-mem storage and logic pod. Think of it as a shared spreadsheet or doc. With this new feature, each doc is a separate Worker instance - you aren’t storing the data in a shared (multi-tenant) database or API layer. /3
Read 13 tweets
28 Sep 20
Someone has commercials allll over NFL recaps today on Youtube.
Literally one every commercial break. Go $CRWD
Took a vid of part of one, missing first few seconds.
Read 4 tweets
17 Sep 20
Wow, 10k+ followers. Thank you to all the new folks joining along.

A bit about me - I'm a technologist & investor who likes to dive into the tech behind today’s hypergrowth companies, and what drives the platforms they are creating. All through the lens of an investor.
I really like the companies that are executing incredibly well, customers are flocking to and spending more and more, and that can scale. From there, the best ones can pivot their platform into new directions, expanding TAM.

All that tends to equal investment success.
If that sounds like something you're into, along with some accompanying insights and humor, well then, you're in the right place.

All that plus my new found love of drawing out tech architectures and stick figure portraits.
Read 4 tweets
11 Sep 20
Some reading material for your weekend - my deep dive into the Snowflake platform & architecture.

Snowflake wants to be the engine that drives all analytics – both business intelligence (BI) and data science (ML/AI) -- over the entire enterprise.
Snowflake provides a turnkey cloud-native, scalable database platform with a heavy focus on enterprise concerns of security, governance & compliance, while having a rich ecosystem of integrations & tooling available for ingest, BI and analytics.
I was pretty amazed by the sheer number of use cases their platform enables. In particular, how the platform allows for the secure sharing & exchange of data between customers and outside users. This includes a Data Marketplace, which enables the rise of the Data Broker.
Read 5 tweets
8 Sep 20
Slaaaaaaaaaaaaaaaaack. Never been a fan of $WORK’s platform. Too many “free” options like Teams chipping away and now Chat. Yes yes automation is a differentiator. Is that enough?
Condolences to any holders. Intent was not to pile on, just never understood the appeal. On the plus side the growth has been very consistent — but that was probably what drove the sell off. Folks wanted more from the supposed tailwind.
Comparing to is what makes it so stark. Why is Slack not getting ANY of that massive tailwind that Zoom is?
Read 4 tweets
1 Sep 20
Zoom just increased their revenue by 102% in 3 months. They just doubled... in a quarter.
Zoom CC: "Hi everyone. Just take what we did in Q1 and double it."
Customers went from 265k to 370k +40% QoQ, leading to rev +102% QoQ. Big custs are up +28% QoQ. But there is a lot of rev growth hidden in that number, so it seems their biggest customers are REALLY using Zoom a lot.
Read 4 tweets
15 Aug 20
Watching some late night hockey playoffs and scrolling the twitters in the slow moments. Who has a question about SaaS co or their tech? Lighting round AMA
I’ll start. Do I like ? Not really. Growth spurt is great but over very low margins that doesn’t show any leverage. They are a middle man ad broker (installed apps in new devices) that is riding success in device ownership. Not interested.
Upwork is one of the worst SaaS apps I have had the pleasure of using. Second only to Concur which not only sucks but is extremely ugly too. Service Now also terrible UI.
Read 4 tweets
5 Aug 20
Look at those $CRWD numbers, the trends that you see. To me, it says “Hypergrowth top line showing strong signs of operational leverage.” That should perk up your ears - catch your attention.
My rather simple strategy: Follow the companies with hypergrowth revenue. Watch for any sign of strong uptick in op margins and cash flow. When you see it, ACT. Establish a position immediately. It forces you into further research.
Do not delay. Buy into the story and fill in the backstory w a deep dive as you go on from there. If you aren’t up on the company or the tech or the industry, make the position smaller.
Read 8 tweets
4 Aug 20
I had many epiphanies while researching Edge Networks, and hopefully you did too while reading. So where to begin with the takeaways?
I think the biggest for me was seeing that CDN features are but one application on top of the edge networks at and , the first of many more to come. Do not limit your thinking by lumping them in w/ legacy CDNs in a commoditized market!
That CDNs are but an app is supported by how used Workers (their edge compute platform) to create a cybersecurity platform that clones . And they plan on using Workers for all new product lines from here! Fastly is assuredly doing the same w Compute@Edge.
Read 8 tweets
30 Jul 20
I will recap it all once their Serverless Week is over, but it isn’t difficult to read between the lines — while AWS is mentioned often, is shooting across ‘s bow with a lot of smack talk.
In today’s tech-blog post: “If we had to run a separate process for every guest, the number of tenants we could support would be drastically reduced, and we'd have to limit edge compute to a small number of big enterprise customers who could pay a lot of money.”
In Monday’s post from CEO Prince: “Speed is the icing on the cake, but it’s not, for most applications, an initial requirement. Focusing only on it is a mistake that will doom edge computing platforms to obscurity. ...
Read 4 tweets
26 Jul 20
@SeifelCapital @stronghobbit @Logos_LP @DPogrebinsky vs Snowflake is going to be an interesting one. The relationship actually goes both ways (cooperative and competitive) but I agree with @Logos_LP that likely its a partnership that ultimately helps Alteryx.
@SeifelCapital @stronghobbit @Logos_LP @DPogrebinsky Let’s start w competitve. Snowflake has an analytics compute engine that allows data scientists to run analytical code side-by-side w data (akin to Hadoop’s structure a bit). This is what they are selling as being so much faster. Alteryx is not supported on this capability.
@SeifelCapital @stronghobbit @Logos_LP @DPogrebinsky But as cooperative, Alteryx is featured on Snowflake’s sale deck as an ETL partner. So they fully support using Alteryx to do data prep and manipulation, to then save into Snowflake’s data warehouse. This is a major use of Alteryx... all the steps you can do before the analysis.
Read 9 tweets
18 Jul 20
Cloudflare had an outage today. That can't be good, right?! Au contraire... their response boosts my confidence in $NET. Yes their edge network's resiliency had a failure, but their tech tech and mgmt responded well. /1
A bad configuration change to a backbone pipe between Newark and Chicago caused huge issues on the internal part of their edge network. (Backbones are their giant pipes between data centers - their own private highway between major cities.) /2
The error made that route completely fail, so all the edge network traffic was re-routed through DC to Atlanta, the effect of which caused failures there, which then spiraled out. The net effect from the cascading error quickly caused ~50% traffic drop in their edge network. /3
Read 12 tweets
16 Jul 20
With Twitter getting hacked, seems like a good time to talk about why covering ALL angles of cybersecurity is important, including the human factor. hhhypergrowth.substack.com/p/the-age-of-h…
“Social engineering” doesn’t seem to be widely understood. It means MANIPULATION of PEOPLE. Phishing is but one example of this, but it can take many forms beyond stealing credentials -- masquerading as a boss, or extracting company- or personnel-secrets out of employees.
Companies must layer security protections over all aspects of their workforce - the users, those users' accounts & devices, the usage and traffic from those devices to outside tools & internal services, AND, as reinforced today, educating that workforce (the human element).
Read 6 tweets