HCP - HashiCorp's Unit Economics And Margins Have Trended In The Wrong Direction
2023-03-12 22:29:14 ET
Summary
- HashiCorp is a major player in the open-source infrastructure software space, providing a suite of tools to manage and secure IT infrastructure across different cloud environments.
- In an environment of increased efficiency amongst its peers, HashiCorp's margin profile and unit economics have trended in the wrong direction.
- Based on management's long-term revenue and margin targets, a sensitivity analysis shows that HashiCorp is richly valued, with little margin of safety for investors.
- Investors should sit on the sidelines till the company can demonstrate improving margins and till its valuation moderates.
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HashiCorp's Unit Economics And Margins Have Trended In The Wrong Direction