Specialist
Former executive at Precisely
Agenda
- Precisely's operating environment overview
- Competitive dynamics across Precisely, SAP (NYSE: SAP), Informatica, IBM (NYSE: IBM) and others
- Post Syncsort-Pitney Bowes merger (NYSE: PBI) synergies within the combined entity
- H2 2021 outlook, new executive leadership, margin expansion potential and product differentiation across major competitors
Questions
1.
Could you give an overview of what Precisely does and the value add of its services? Who is being targeted across different customer use cases?
2.
Could you outline the overall operating environment for Precisely and big data solutions more broadly, pulling out a few key trends you think investors should focus on?
3.
Precisely expects worldwide digital transformation spend to reach USD 1.3tn. How should we assess the company’s market opportunity and the digital transformation’s acceleration, based on the factors you mentioned? How might this acceleration impact corporate budgets and the overall market that Precisely plays in?
4.
How should we evaluate Precisely’s competitive landscape? The company competes with players such as SAP and Informatica and is the third-largest by revenue in the data quality sector, just ahead of IBM. What main competitive dynamics are at play across these vendors?
5.
Is Precisely’s relationship with IBM cooperative competition or do you expect increased direct competition in the medium-to-long term? How should we assess some of the plays here and how Precisely is positioning itself?
6.
Who do you think is Precisely’s main competitive threat in the medium-to-long term?
7.
How strong is Precisely’s product moat? What do you attribute this to?
8.
You mentioned the added value from the Syncsort-Pitney Bowes merger. Can you outline the strategic merger more broadly? What’s your outlook for the combined assets’ strength? How did this factor into Syncsort’s rebrand to Precisely and how is it positioning the company for the next growth phase?
9.
What are your thoughts on Precisely’s most recent M&A, especially the announced Winshuttle and the finalised Infogix acquisitions since May 2021? What’s the potential added value and what product and business synergies should we monitor?
10.
How confident are you in Precisely’s integration capabilities and ability to add solutions to the tech stack – whether as a bolt-on or a full re-architecture – and bring the businesses under the Precisely organisation?
11.
Where else would it make sense for Precisely to add functionality? What types of companies would be logical for it to target next?
12.
Could you outline the general build vs buy vs partner thought process? How does Precisely gauge the ROI on internal R&D efforts vs issuing debt for acquisitions?
13.
What stands out about Precisely’s go-to-market strategy and ability to compete with peers? How does this play into the company’s win rates?
14.
Precisely seems to mostly offer large, USD 10,000-75,000, one-year contracts for around 3-5 users at any given customer organisation. How does pricing improve with scaling use, such as number of users for added products? How much of a driving force is this for the company’s upsell and cross-sell capabilities? Where do customers add value and really expand ACV [annual contract value] for Precisely?
15.
Precisely posted USD 600m in revenues for 2020 when it went through its most recent leveraged buyout, with expectations to reach USD 650m-700m for 2021. How sustainable is this growth? How should we consider the balance between organic and inorganic growth and how that factors into the company’s 3-5-year outlook?
16.
What’s your outlook for CEO Josh Rogers and his ability to lead Precisely through this next growth stage? What other factors might impact the company’s overall growth story, strategy and ability to navigate the market?
17.
What do you think is the best- and worst-case scenario for Precisely? What will factor into that bull and bear scenario?
