High Growth Software Company: Tremendously Popular Solution, High Options Market Premium Income

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This young high-growth software company has become a solution-of-choice for developers and organizations alike within a relatively short span of time. The company has achieved a five-year annual revenue growth rate of ~59% through a proven “Land-and-Expand” business model, an endeavor to fill the platform’s functionality gaps, a rapidly expanding market, and a solid management team. The company’s stock lost about half of its value in the COVID-19 induced market turmoil earlier this year, but has strongly recovered since then and is currently trading at almost 28x Price-to-Sales multiple. The valuation certainly looks rich (considering the company is not yet profitable and is burning a lot of cash), but the platform is immensely popular among developers and it has a very long runway for continuing high growth in the years ahead. The shares also offer very high premium income in the options market. This article reviews the health of the business, growth prospects, valuation, risks, and concludes with our opinion about why it may be worth considering (and how to play it with put options) if you are a long-term growth-oriented investor.

To access this report, please click HERE.