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    Chad Bennett

    Research Analyst at Craig-Hallum

    Chad Bennett is the Senior Vice President and Research Analyst specializing in software and technology at Craig-Hallum, where he covers companies such as Teradata, Napco Security Technologies, Box, and Varonis Systems. With a strong track record reflected by a success rate of approximately 54% and an average return of 14% on his stock recommendations, Bennett is ranked among the top ~25% of Wall Street analysts by performance metrics. He joined Craig-Hallum in 2011 after prior roles at Miller, Johnson, Steichen, Kinnard, Inc. and Northland Securities, and earned his undergraduate degree from the University of St. Thomas in 1998. Bennett holds professional credentials and is FINRA-registered, supporting his expertise in equity research and investment analysis.

    Chad Bennett's questions to ZUO leadership

    Chad Bennett's questions to ZUO leadership • Q4 2024

    Question

    Questioned the claim of having the "best retention rate since going public" in light of recent churns, asked about revenue recognition for the churned customers, and challenged the strategy of running the professional services division at a loss.

    Answer

    The "best retention" refers to gross retention. The churns were described as abnormal, one from a non-live customer facing macro issues and another from a long-time customer who failed to transform. Revenue was being recognized from both. The negative services margin is partly seasonal and considered a prudent investment to support partners and customers, which drives high-margin subscription revenue.

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    Chad Bennett's questions to ZUO leadership • Q3 2024

    Question

    Asked for clarification on the sequential decline in deferred revenue and billings, Q4 seasonality, and an update on new logos and sales cycles mentioned in the previous quarter.

    Answer

    Executives advised focusing on ARR growth rather than messy calculated billings, noting strong RPO growth from long-term deals. They stated they are being conservative in their outlook despite positive signs like an increase in new logos year-over-year, as the macro environment still has unknowns. They confirmed the strategy of smaller initial lands is working alongside large, multi-million dollar deals.

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