As a business owner operator, I do think NOW offers an irreplaceable service. And they have shifted their pricing to seats + AI assists from agents and are deploying integrated agents into their systems.
Also re Adobe - I am a hobby photographer. Someone could pay me to switch off Lightroom and it would be a hard choice.
I’ve tried to edit photos with AI and it just doesn’t work - as a creator I need full control and translating internal visuals/thoughts into prompts cannot convey that.
That doesn’t mean the product that can won’t come in the future - it may. But Adobe is integrating all of the best models into their suite while allowing full control to the creator.
I dont think there’s any short term catalyst here for them but I imagine they will execute through the sentiment. They won’t ever return to the premium multiples they once commanded but that’s ok.
Yeah that’s what’s great about communities. Many alternate perspectives.
FWIW - as a business operator and intuit user, imo INTU multiple compression is warranted as there are significant increased disruption risks that may not eat away or kill INTUs business but may certainly slow down growth and take future customers.
very honest and reasonable take. i would just add that many of csi businesses are not the typical saas revenue models but rather flat flee or maintenance fees or something other than purely seat based, although that has been more common over the years as software in general has moved in this direction.
As a business owner operator, I do think NOW offers an irreplaceable service. And they have shifted their pricing to seats + AI assists from agents and are deploying integrated agents into their systems.
Also re Adobe - I am a hobby photographer. Someone could pay me to switch off Lightroom and it would be a hard choice.
I’ve tried to edit photos with AI and it just doesn’t work - as a creator I need full control and translating internal visuals/thoughts into prompts cannot convey that.
That doesn’t mean the product that can won’t come in the future - it may. But Adobe is integrating all of the best models into their suite while allowing full control to the creator.
I dont think there’s any short term catalyst here for them but I imagine they will execute through the sentiment. They won’t ever return to the premium multiples they once commanded but that’s ok.
Most of the others I’m in full agreement with.
Thank you Manu, I appreciate all the insight into these names I can get - software isn’t exactly my circle of competence.
Yeah that’s what’s great about communities. Many alternate perspectives.
FWIW - as a business operator and intuit user, imo INTU multiple compression is warranted as there are significant increased disruption risks that may not eat away or kill INTUs business but may certainly slow down growth and take future customers.
Great write up. CSU is definitely the most interesting of the bunch.
Thank you, Jacob. Yeah I’m tempted to start a position just because…
This article comes at the perfect time. I completly agree with your read on the market's reaction. It's a wild ride, for sure.
very honest and reasonable take. i would just add that many of csi businesses are not the typical saas revenue models but rather flat flee or maintenance fees or something other than purely seat based, although that has been more common over the years as software in general has moved in this direction.
Thank you Simon.
Would love to pick your brain a bit on CSU. I know you’ve been a long term holder and probably understand the biz better than most.