Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” October 2023 investor letter. A copy of the same can be downloaded here. October was a busy month for the Fund with the team’s main attention on several portfolio businesses that released earnings. The Fund returned 0.7% net of fees and expenses for the month compared to -1.1% for its benchmark. Since its inception at the start of December 2017, the Fund has returned 102.7% compared to 67.8% for its benchmark’s, MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2023.
Lakehouse Capital highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in the October 2023 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a global cloud computing solutions provider. On January 2, 2024, ServiceNow, Inc. (NYSE:NOW) stock closed at $687.52 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 0.19%, and its shares gained 74.56% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $140.979 billion.
In its October 2023 investor letter, Lakehouse Capital stated the following regarding ServiceNow, Inc. (NYSE:NOW):
“ServiceNow, Inc. (NYSE:NOW) also delivered a strong quarterly result that surprised on the upside. Subscription revenues grew 27% year-on-year to $2.29 billion and non-GAAP operating income grew 41%, both exceeding analyst expectations and the company’s own guidance. Key performance indicators were healthy, with current remaining performance obligations growing 27% year-on-year to $7.4 billion and renewal rates holding firm at 98%. Despite the challenging macro environment for many software companies, ServiceNow’s multi-product platform continues to resonate with large enterprise customers with the number of clients spending over $1 million in annual contract value (ACV) up 17% year-on-year to 1,789, while the cohort spending over $20 million swelled by 58% year-on-year to 49. Helping drive some of that product adoption was their Creator Workflows module, first launched near the start of 2021, which crossed the $1 billion ACV threshold this quarter.
We remain impressed by the execution from management, who continue to expand the company’s total addressable market with new product launches that generate significant return on investment for their customers. Right before the quarter ended, they launched the Vancouver Platform release, which embedded generative AI across all workflows on the Now Platform and managed to close four large deals in a single day. Their generative AI offering drove the highest number of customer requests ever for a prerelease product in the company’s history, providing an attractive pipeline of new deals. Overall, we have high conviction in their growth trajectory and are happy to remain patient shareholders.”
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW) is in 24th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of third quarter which was 93 in the previous quarter.
We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the list of high growth large-cap stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
