The largest IT outage in history, an SEC/DOJ investigation, and a renewal cliff the market hasn't priced into Wall Street's most expensive cybersecurity stock.
Really sharp analysis on the contract timing lag. The fact that prepaid multi-year deals create a buffer before churn shows up is something most people miss when looking at retention rates right now. The analogy about buying a house with a free security system then paying for a second one captures Microsofts bundling advantage better than alot of technical explanations Ive read.
I think also the interesting thing with Cybersecurity companies is it is a truly a zero fail mission. One major failure (like the BSOD issue) and your stock is going to sell off dramatically.
Great write up. I will definitely be paying attention to you articles moving forward.
Thank you!
Really sharp analysis on the contract timing lag. The fact that prepaid multi-year deals create a buffer before churn shows up is something most people miss when looking at retention rates right now. The analogy about buying a house with a free security system then paying for a second one captures Microsofts bundling advantage better than alot of technical explanations Ive read.
I think also the interesting thing with Cybersecurity companies is it is a truly a zero fail mission. One major failure (like the BSOD issue) and your stock is going to sell off dramatically.
Thank you!