market folly

We're posting up notes from the Capitalize For Kids 2018 investment conference.  Next up is Ulrike Hoffmann-Burchardi of Tudor Investment Corp who pitched a long of MongoDB (MDB).


Ulrike Hoffmann-Burchardi's Capitalize For Kids Presentation: Long MongoDB

MongoDB
o    Yottabytes

•    Digitization is the megatrend —> conversion of information into data
•    Identified drivers
o    Devices
o    # of sensors / devices
o    Connections between sensors and Devices
•    She has a chart of # of yottabytes generated annually
o    Conservative estimate of their estimate - 2028 1 yottabyte a year in data
o    Mostly unstructured data
•    Have to be able to derive insights from the data
•    Businesses are truly aware of the opportunity
o    And counted the number of times data and ML/AI are mentioned
o    Data being mentioned frequently and growingo    AI less frequently, but growing fast too
o    Google mentions AI/ML 50% more than the #2. On average every 6 minutes

•    2 types of biz (using a Gold Rush analogy)
o    Data science enhances core biz 
The Miners:    GOOGL, AMZN, TWTR
o    Core biz data analysis tool –
The Merchants (selling pickaxes):    NVDA, IBM, AMD
•    What is a better bet? Miners or merchants.  Merchants outperform everyone else 225% vs 103% miners

•    Which companies help derive insights from data?
•    Stack
o    Storage
o    Extraction
o    Data warehouse
o    Analytics

•    MongoDB hits the full stack
•    Contrasts relational to MongoDB
o    Relational 1979 - rows and columns. Structured data, and on premise
o    MongoDB 2009 - All data, Petabytes scaling easy, in the cloud
•    3 Criteriao    Market
•    $68bn by 2025 - $28bn is unstructured data
o    Leadership
•    MongoDB is the leader in non-relational DB, with 40% share, and not tied to a given vendor
•    Star ratings on Github repos, and Mongo DBs are killing it. Much more than any other solution out thereo    Execution
•    CEO and CTO are studs
•    CEO - Dev Ittycheria - Entrepreneur BladeLogic, BMC, and then invested at Greylock
•    He made a big bet on the cloud that paid off
•    Professionalized the GTM and has done very well
•    CTO Brain of MongoDB
•    Brings them to feature parity with relational DBs + their benefits on top
•    $8bn+ revenue annually in 2025 at 20% op margins then. Still 10xer over that period.
•    $120 NTM price target, 40% growing over the NTM


Be sure to check out the rest of the presentations from Capitalize For Kids 2018.