6/5/24 - $cxm - sector keeps me sidelined for better entry 6/5/24 - vrockstar - NYSE:CXM - i like the inflecting opex leverage here, with gross profit up $25 mm in the last Q (on a YoY) basis and opex flat. this should continue and we'll still see mid teens growth for this smid cap. cash generation still fully supported by stock comp - which is undesirable but par for the smid tech complex. PE also less relevant here, but not cheap, between 25-35x depending on whether you want to measure next year or extrapolate a bit further out (we're nearly mid-year '24 at this pt so perhaps '26 really is the best #).
That being said, this still on my 'would buy' but need to see a bigger discount. the software factor is just getting cream corn'd right now by AI fears and probably rotation to some degree (which we can discuss in comments or DMs if you want a more nuanced POV here). So all in- i see nothing fundamentally wrong, valuation is okay, stock should do fine in the MT context. but in the short term context it's tough for me to want to get involved ahead of these results.
gl to the holders i'll be rooting for you
-V