So we took a deeper dive into Zoom’s $ZM results and there’s more to consider. What we see are two equally important datapoints: (1) Zoom handily beat revenue and earnings, but (2) when we look at sequential Q to Q performance the numbers are fairly flat. This is concerning… 1/

because put in the perspective of COVID’s impact on the numbers from last year forward we want to see companies at this high of a price to sales ratio continuing to grow strongly, post-COVID and at least for now that’s now what we’re seeing – particularly compared with… 2/

SaaS stocks in $ZM peer group. Could there be some logic to this, as seemingly everyone jumped on Zoom when COVID hit? Of course. But with their Remaining Performance Obligations also dipping substantially, our continuing view into Zoom’s future doesn’t give us enough “fuel”… 3/

to consider any high growth, high market cap, high price to sales ratio investment necessarily safe from more valuation compression – and definitely not on our special short list of high confidence future growth companies. So what is our plan and what do we want to see next? 4/

We want to see some combination of $ZM considering anchoring a SaaS bundle (either partner with or acquire companies with complimentary capabilities like $ASAN or Calendly etc) and/or building out a popular integration store not unlike Apple’s App Store. In summary, $ZM is… 5/

a hold for The Snark, though because we like deploying cash toward cos with big growth ahead rather than behind, despite $ZM rocking with big numbers we’re leaning toward that money going to future big gainers. Either way, we likely can’t lose. 6/END