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Trung Nguyen @SWIs's avatar

Hi Steve,

I read your analysis on FC again. It's a very succinct piece. Thank you.

I don't understand/appreciate the product offering enough to dive further. It's a personal choice. I prefer owning businesses with mission-critical offerings (Veeva, Wisetech, VAT..) or having mediocre alternatives (Willscot, MIPS, FND). Additionally, I prefer businesses with more abundant growth opportunities. If the company could find a new way to leverage its knowledge/courses or acquire similar businesses, then I'd be more interested. Right now, it seems the only cap allocation option to create value is to buy back shares....however, that's short-term and doesn't change the business fundamentally, IMHO. Again, it's a personal choice.

Thanks for your work again. Trung - Sleep Well Investments

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Bwitmer's avatar

Thanks for the write up. I agree the revenue is high quality from a working capital dynamic. A key question with this company is whether they have an effective sales organization and go to market. Relatedly, are customers receiving excess value from the all access pass? Would customers from one division of a large company ever refer all access pass to their colleagues in another division? If FC can get their net revenue retention numbers to inch closer to Gartner's, this could be a be a great stock to own.

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