Let’s use the simple EV-to-Sales measure for illustrative purposes. It’s really a difficult battle to win when one of your competitors is outspending your Sales & Marketing, and R&D by 80x and 90x, respectively! What About Valuation? In contrast, for the first half of 2021, Nitro Sign spent $1.8 million in R&D and $5.4 million in Sales & Marketing. DocuSign could do that because it delivered nearly $1.5 Billion in revenue, up 49% over 2020! In fiscal year 2021, DocuSign spent $278 million in Research & Development (R&D) and $866 million in Sales & Marketing. And that’s where the scale starts to matter. Just do a Bing search! And a lot of success in this industry is based on building integrations with other applications and solving specific use cases such as contract management. #Nitro software pdf#While we all know about Adobe and DocuSign, several other PDF and document productivity applications are available. But the document productivity industry is hyper-competitive. It also expanded relationships with the likes of BNY Mellon, UnitedHealth Group, and Cigna. The business had some marquee customer wins this half, including Blue Origin and SVB Financial Group (NASDAQ: SIVB). #Nitro software pro#For instance, DocuSign’s Business Pro sells for $40 per user per month Nitro’s Sign Enterprise package sells for $29.99 per user per month. Nitro’s strategy, to some extent, is centered on pricing, in addition to the expansion of product capabilities. Nitro had $38.6 million cash or equivalents at the end of the half-year.And yes, some companies listed on the ASX report in US dollars as their primary revenue currency. Note that unless otherwise stated, the currency is US dollars. Annual recurring revenue (ARR) finished at $33.8 million, up 56% year over year.Recently, the company reported first-half 2021 earnings. The company is competing in a space that’s dominated by those two giants. Well, if much of what Nitro does sounds like Adobe (NASDAQ: ADBE) or DocuSign (NASDAQ: DOCU), then you aren’t off base at all. Interestingly, the company counts 68% of Fortune 500 among its customers. The business has 2.8 million licensed users and over 13,000 business customers (i.e., those with 10 or more licenses) in 155 countries. The company is headquartered in San Francisco. Nitro Analytics, which is a platform for measuring and tracking document usage.Nitro Sign, which is basically an e-signature platform. #Nitro software software#Nitro PDF Pro, a software for creating, editing, and collaborating on PDF documents.Nitro is a document productivity software company. With that preamble out of the way, let me tell you about one exciting business called Nitro Software (ASX: NTO). After all, every now and then, Aussie entrepreneurs throw out a big one, like Afterpay (ASX: APT) and Atlassian (NYSE: TEAM). But I follow the tech scene closely on the ASX. I have a tiny allocation to ASX-listed stocks, roughly 1.5% of my investments, more or less inline with the ASX’s size relative to global equity market’s size. The ASX is mainly known for banking and mining stocks, but it also hosts some promising micro-cap (by US standards) companies. Some of you also know that I spent several years turning over rocks in the Australian Securities Exchange (ASX). As many of you know, I live in Sydney, Australia.
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