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
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.
Thanks for the comment! So for FC's sales org, the CEO has outlined the company's 'land and expand' strategy for growth (via a Silicon Slopes interview you can find on Google). The biggest risk to corporate training relationships is that they're generally spearheaded by one key person in the client organization. When that person leaves, the relationship is in jeopardy. FC's strategy involves engaging multiple stakeholders throughout the organization with the end goal in mind that one person can't unilaterally end the relationship (of course, that can always happen at some level, and again, this is per the CEO). So from a sales perspective, I think they're moving at a fairly good clip.
Agreed on net revenue retention, if they can continue to push that figure higher over the next year or two the stock should eventually respond.
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
Thanks for the comment, and for taking the time to read the piece!
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.
Thanks for the comment! So for FC's sales org, the CEO has outlined the company's 'land and expand' strategy for growth (via a Silicon Slopes interview you can find on Google). The biggest risk to corporate training relationships is that they're generally spearheaded by one key person in the client organization. When that person leaves, the relationship is in jeopardy. FC's strategy involves engaging multiple stakeholders throughout the organization with the end goal in mind that one person can't unilaterally end the relationship (of course, that can always happen at some level, and again, this is per the CEO). So from a sales perspective, I think they're moving at a fairly good clip.
Agreed on net revenue retention, if they can continue to push that figure higher over the next year or two the stock should eventually respond.
Thanks. What's your email?
Every time I heard "Huge upside potential" I think of the Wolf on Wall Street.