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Constellation Software Inc. (CSU $2,796.99)
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Kinaxis Inc. (KXS $134.64)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP $184.26)
Q: It's been a while since you've been asked about this company specifically.
I don't really want to sell companies hit by the software scare, but I am thinking of opportunity cost and perhaps switching the money in KXS to something in the same sector with more upside potential (eg. CSU).
Can you comment on KSX and, if you would make this move, one or two companies to switch into.
I don't really want to sell companies hit by the software scare, but I am thinking of opportunity cost and perhaps switching the money in KXS to something in the same sector with more upside potential (eg. CSU).
Can you comment on KSX and, if you would make this move, one or two companies to switch into.
5i Research Answer:
KXS reported results with revenue of $144 mln vs $139 mln expected. Revenue outlook for the year was $620 mln to $635 mln vs $623 mln expected. ARR grew 20% and RPO is approaching $1 bln. The CFO is departing to a new role which markets might not like but looks orderly overall.
If looking to switch into another software name, we think CSU makes sense we also think SHOP could be anotehr name. They are both at different ends of the valuation spectrum, but SHOP has also been in a drawdown while still having attractive growth prospects.