CSOD
Cornerstone OnDemand, Inc.
stock NASDAQ

It's all about growth. Gross margins are good, net is not. Did quite a bit of digging - CSOD was acquired by PE in 2021 for $57.5 a share or $3.84B total mkt cap (weird exit for a profitable company, founder probably wanted out?).
Their rev was $850M annually with about $2.5 EPS annually - P/E ratio of about 23.
Docebo is doing $200M in rev with $0.1 EPS annually (P/E 81) at a 1.3B valuation
Kind of hard to justify - I do think if they continue to improve their product they will have a competitive advantage. Based on what I know about PE acquisitions usually they cut hard on R&D and just try to juice returns. But their valuation currently is rich based on their revenues and earnings.
Why would their valuation double to 2.6 Billion over the next year? What catalyst outside of "maybe they get fedramp certified and win government contracts"? Also SLED is notoriously a pain to work with because their contracts are long and locked in. They hate change management.

It's all about growth. Gross margins are good, net is not. Did quite a bit of digging - CSOD was acquired by PE in 2021 for $57.5 a share or $3.84B total mkt cap (weird exit for a profitable company, founder probably wanted out?).
Their rev was $850M annually with about $2.5 EPS annually - P/E ratio of about 23.
Docebo is doing $200M in rev with $0.1 EPS annually (P/E 81) at a 1.3B valuation
Kind of hard to justify - I do think if they continue to improve their product they will have a competitive advantage. Based on what I know about PE acquisitions usually they cut hard on R&D and just try to juice returns. But their valuation currently is rich based on their revenues and earnings.
Why would their valuation double to 2.6 Billion over the next year? What catalyst outside of "maybe they get fedramp certified and win government contracts"? Also SLED is notoriously a pain to work with because their contracts are long and locked in. They hate change management.