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kappachino's avatar

Thanks for answering my previous question.

Overall strong numbers but decelerating revenue makes it harder to justify the premium valuation (although been less premium with the selloff).

I notice your summaries don’t really take valuation into account. Is that part of your evaluation process? Or perhaps a less important factor?

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Sergey's avatar

Yes, you noticed correctly, in my quarterly earnings analysis, I do not evaluate stock valuation. You can check the "Deep Dives" section, where I analyze companies, including valuation multiples and comparisons with competitors. The last Deep Dive was on Snowflake, and I will soon publish one on $DUOL.

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kappachino's avatar

Great summary. Can you detail how did you calculate

↘️CAC* Payback Period 5.8 Months (-0.5 YoY)🟢

↗️R&D* Index (RDI) 1.41 (+0.03 YoY)🟢

Thank you!

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Sergey's avatar

Hi, great question.

The CAC Payback Period is calculated as: previous quarter's S&M expenses / net new ARR added in the current period * Gross Margin. I use non-GAAP metrics.

The RDI Index is calculated as: quarterly growth in % / (total R&D expenses over the past year / revenue over the past year).

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