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My rating is “satisfactory” so I maintain a hold on my much reduced share holding.

My ongoing concern is the new customer numbers “ New customer additions slowed across the period, as a challenging macro-economic environment through the second half of FY 2023, made prospects more reluctant to trial software they did not believe they would have budget for and extended sales cycles for purchases.”

But good for all the true believers and long term holders.

Getafgrip - you are looking at in-hours trading prices. After hours the SP surged according to Reuters this morning - according to their headlines :“CrowdStrike forecasts upbeat annual results, shares surge 25%”

A few hours to US opening so all will be revealed one way or another as will the half year results of DT tomorrow. Whatever DT has tough competition.

They rose by that in after hours trading after falling by 5% prior to the results were issued. The results beat forecasts.

BR - great analysis on the psycology of investing. It reminds me of a quote in Ben Graham’s book - my bible - The Intelligent Investor. “In the end how your investments behave is much less important than how you behave”

EuropaEuropa - Your point about Poppy inheriting shares at IPO is noted and correct (0.44% at IPO) think and ca4% now according to the annual report) The old dictum in risk management is that “ perception = reality” so no matter the right s or wrongs it is the perception that matters and Mr Market normally takes a dim view on director sales esp. if he does not understand why. Perception too is important wrt the Autonomy affair. Interesting the latest annual report still lists it as one of the 8 identified risk factors, and the Invoke representative on th BOD was voted out for this reason.

I still do not think it is a bad share to hold but,in my judgement, it will not shoot the lights out unless the revenue rate improves markedly. I bought in as one of my speculative share portfolio looking for a 10 baggers within 10 year framework. Initially when the rate was accelerating all signs were that this was achievable but I’m unconvinced this is now the case. I still hold a few to maintain an interest.

May I suggest there is a big difference between Jeff Bezos and DT executives as he was the founding member of Amazon and his shares were his from the IPO - and these were the shares he has been selling. None of these shares were received as compensation as far as I know. The salary he took while still boss was only $80,000 per year and he got $1.6m for security.

Contrast Poppy’s salary of 0.5milion with bonus/incentive payments of up to 4x that partly in cash and partly shares. These shares were meant to tie her into the interests of the shareholders so any sales, in my view, are a bad sign especially if the preprimary reason for their sale is not explicitly stated.

But given the need for DT’s product, revenue needs to accelerate like a Ferrari, not a Fiat500.

SW77 - No regrets at all, it has been interesting and informative to own and hold DT from IPO. A small profit on sale and above the present price. I added the cash to my NAVIDIA holding - so far so good. I have kept a small stake in DT out of interest, but the shine has come off the prospects IMHO.

I hope for the sake of all who hold that I am wrong, and that they will eventually be able to slide down the rainbow to the pot of gold.

ATB

Overdelivering? Here are the updates figures on customer numbers and revenue growth half-year on half-year since IPO.

Customer numbers (number of customers: growth rate on previous half year )

1HFY21(4677;21.2%)..2HFY21(5629:20.4%)..1HFY22(6531:16.0%)..2HFY22(7437:13.9%)..1HFY23(8178:10.0%)..2HFY23(8799:7.6%)..1HFY24(9232:4.9%)

Growth rate of custome numbers showing an ongoing fall. Crowdstrike is doing much better.

Revenue (in USD per half year: growth rate half year on half year)

2HFY20(199:18.6%)..1HFY21(127:17.1%)..2HFY21(159:24.5%)..1HFY22(193:21.5%)..2HFY22(221:15.6%))..1HFY23(259:16.3%)..2HFY23(286:10.4%)..1HFY24(330:15.2%)

Revenue showing some signs of a turnaround but on the back of existing customers, not new ones to any great extent.

Still in the recovery ward I think.

For anyone interested, here are some stats to base your own conclusions on:

Growth Rate of customer numbers over the last 8 quarters:

Q1FY22 (6.7%): Q2 FY22(9.3%): Q3FY22(5.5%): Q4FY22 (7.4%): Q1 FY23(4.8%): Q2FY23(5.4%): Q3FY23(2.8%): Q4FY23 (4.7%): Q1FY24(1.4%): Q2FY24(??%)

Growth Rare of Revenue over the last 5 years:

FY19(72.5%):FY20(45.3%): FY21(43.2%): FY22(45.7%): FY23(31.3%):FY24(???%)

As far as I’m concerned, Ineed to see a sustained rebound in both rates for me to justify holding onto the few remaining shares I still have.

The demand for cyber security is there - but can and will they get their act together and be anything other than an alsoran?

20questions - “I thought it was a load of crap”. Interesting - if an IT professional’s first impression is this, it might explain why a product that is “is pretty incredible” is not making any progress in taking away business from its large and capable US competitors. The revenue growth rate has been decelerating since 2018 (greater than 70% then; less than 30% now ) and is, as yet, showing no signs of reversing.

Clearly, it seems to me, that DTs marketing approach has a serious difficulty. Perhaps it is because the BoD and Executive Management is spending too much effort incentivising themselves rather than focussing on aspects that matter.

School Report:- “can and must do better”

Some conclusions of research done down under on Executive share sales

Quote:

There is a close correlation between those at the top of a company selling stock and subsequent underperformance of the share price.

Some handy research by stockbroking firm Wilsons found that in 2016, of the companies whose management sold parcels of shares, 76 per cent of them underperformed the market after the sale. On average their share prices fell by a massive 14 per cent.

Unquote

Look familiar?

Personally I see sales by the BoD or Executive managers as very bad news especially 3-4 weeks before the 1HFY24 trading update. They could always borrow money to pay for whatever their private needs are using their shares as collateral. What their sale says to me is that they don’t believe the return for the SHs will be more than the interest rate. It signals all the wrong things.

To me the problem lies with the BoD who treat we owners with complete indifference or worse contempt.

Cardio - thereby the problem - , shareholders no longer see themselves as co-owners and therefore don’t give a damn. I think the S&P is 50% owned by trackers so they probably don’t pay much attention nor will the ever increasing army of traders.

For this reason, companies feel like they can do what they want and do just that - completely ignoring their owners. And that, perhaps, is why executive pay - has got completely out of control.

I am one of those rare people who see voting as an obligation - whether as shareholder or as a citizen in political elections. Does my one vote make any difference? Of course not - but collectively, if we all felt the same, It might go some what to making it a better world.

BK - I don’t know what others think - I can only give you my perspective.

For me it is not about the person, but the who appointed him originally which is Invoke. My concern with Invoke is that - right or wrong - it is associated with then HP/Autonomy affair. To my mind DT now needs to further distance themselves from this by removing all Board members associated with that history.

This is over and above my own disquiet about the BoD’s overall performance in not focussing on - and not fulfilling their primary purpose of, - looking out for our interests as share holders.

I trust that all SH’s on this board exercised our right to vote at the AGM.

I’m pleased to see the opposition to Resolutions 9, 11 and 12 and the exit of one BoD member (Invoke appointee), but I was hoping for greater opposition to the renumeration report. At last we sH’s have acted - voting at the AGM is the only - albeit limited - power we have.

I loved his insights and humour, and I learned a lot about investing from him.- notably EBITDA, which DT focussed on, = bulls***t earnings. RIP

Good post Getafgrip.

DT is no longer living up to my expectations. The first year after IPO things looked great - an accelerating revenue and customer growth rates and good progress in profitability - one profitability indicator after the other becoming positive in the sequence gross margin, EBITDA, EBIT (operating profit) and E (net profit). Then the growth rates started flat lining and my thought was that only perhaps DT was the best thing since sliced bread. Now I think maybe it is not the best thing so I am in the process of divesting as opportunities to do so arise.

As you say it is a fiercely competitive world out there and DT has yet to demonstrate that it has the sustainable competitive advantage I hoped it had with its unique technology. And the BoD has been poor in fulfilling its primary purpose of looking after my interests as a co-owner of the business - I don’t recall seeing the word “shareholder” mentioned once in the 50 pages of the annual report that reported on BoD matters. The two recent appointees seem to have no Board experience so I’m not hopeful that will change.

For the sake of those I remaining invested, and who want to invest, I hope I am wrong for their sake in my current evaluation of the prospects.

I suspect that wasa quote from me, it was badly worded as it should have read independent non-executive directors.

According to the code “The Code recommends that at least half the board, excluding the chairman, comprises independent NEDs.”. Before an earlier appointment and today’s appointment there was a minority of independent non-executive directors.. Now there will be 5 independent NEDS, 2 non-independent NEDS, 2 EDs (CEO and CFO) and the Chairman.so the independents wil be in the majority for the first time.

The non-compliance with the Code was identified as potential issue in the IPO Prospectus and again I think in one of the two annual reports.

Good news regarding the appointment of an independent non-exec to the Board so that it now complies with the UK Corporate Code regarding the balance of independents and non-independence members. Up until now this non-compliance has been serious weakness in the corporate governance of our company in my opinion. I just hope she focusses on her primary role as an independent non-exec and looks after out interests as shareholders.