CFLT - Intuit ZoomInfo Twilio may see impact from SVB fallout but likely 'transient': analyst

2023-03-13 08:03:58 ET

Intuit ( NASDAQ: INTU ), ZoomInfo Technologies ( NASDAQ: ZI ) and Twilio ( NYSE: TWLO ) could see a little impact from the fallout of SVB Financial ( SIVB ), but any collateral damage is likely to be "transient," investment firm Wells Fargo said.

Analyst Michael Turrin noted that for the majority of publicly traded software companies, the question is how much is their exposure related to technology and start-up companies and there is a scenarion in which purchasing and renewal decisions could slow, but not for long.

"Importantly, as of now, we expect any impacts will prove transient and see lower risk of a churn uptick," Turrin wrote in an investor note.

For Inuit ( INTU ), Turrin noted that roughly 55% of its revenue comes from small businesses and people who are self-employed.

Hubspot ( HUBS ) has more than 160,000 customers and roughly 35% of them are on entry level spending. Turrin estimates that Hubspot ( HUBS ) is "likely to do whatever necessary to support customers/build goodwill."

Turrin noted that  ZoomInfo Technologies ( ZI ) has underperformed the market year-to-date due to slowing growth and declining expansion rates, and it is likely "more acutely exposed," given that roughly one-third of its annual recurring revenue comes from small businesses and roughly 40% comes from technology.

Other companies that could also see some impact include Atlassian ( TEAM ), which has roughly 250,000 customers, including a "number" of smaller technology companies, as well as Twilio ( TWLO ), which generates roughly one-third of its revenue from companies with less than 100 employees and has significant exposure from technology.

Confluent ( CFLT ) may also see some impact, given that 85% of its revenue comes from customers spending less than $100,000, but Turrin noted that investor focus has been on cloud growth growth and expansion rates.

Late last month, Twilio ( TWLO ) CEO Jeff Lawson disclosed that he purchased $10M worth of stock .

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