Should You Invest in Model N (MODN)

Conestoga Capital Advisors, an asset management company, released its “Small Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. The fund declined 4.56% net of fees in the third quarter, compared to a 0.24% return for Russell 2000 Growth Index. Stock selection and negative sector allocation impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like Model N, Inc. (NYSE:MODN) in its Q3 2022 investor letter. Headquartered in San Mateo, California, Model N, Inc. (NYSE:MODN) is a cloud based revenue management solutions provider. On December 14, 2022, Model N, Inc. (NYSE:MODN) stock closed at $41.03 per share. One-month return of Model N, Inc. (NYSE:MODN) was 7.92%, and its shares gained 47.01% of their value over the last 52 weeks. Model N, Inc. (NYSE:MODN) has a market capitalization of $1.533 billion.

Conestoga Capital Advisors made the following comment about Model N, Inc. (NYSE:MODN) in its Q3 2022 investor letter:

“Model N, Inc. (NYSE:MODN): MODN reported an impressive second quarter, beating both revenue and earnings expectations. Highlights from the quarter include accelerating ARR growth to 24% and net dollar retention surging to 123%, above management’s target of 110-115%. MODN noted that the strength in bookings came from new logos and cross-sells to customers unrelated to SaaS transitions, providing a nice compliment to SaaS transitions, of which there were three new signings during the quarter.”

Model N, Inc. (NYSE:MODN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Model N, Inc. (NYSE:MODN) at the end of the third quarter, which was 16 in the previous quarter. We discussed Model N, Inc. (NYSE:MODN) in another article and shared Madison Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.