yeah, but they kept on buying it (MSFT products).
Bingo. Anecdotal evidence can frequently contradict what people are actually doing. For every person who hated the products there were numerous others who kept buying it.
I am certain that the business model is flawed.
Certain is a pretty strong word, I almost never use it when discussing business models. I use it when I say things like, "I'm certain that they had positive cash flow of 9.5 million for the quarter, up from 7.6 million in the previous quarter."
Some of the greatest business models come out of ideas that appear fundamentally flawed.
Like I said, on a superficial level it looks terrible and that's what I love about it. Meanwhile 25% of their new accounts come from existing accounts so somehow the existing customer not only uses the product, they are using it in increasing amounts and encouraging their business partners to use it. Sales without sales costs.
If I miss an opportunity, another one will come along.
This is always true. One never has to take a position in anything.
I do know if I were shorting I'd pick on the zillion companies that are walking wounded with declining revs and shrinking earnings. Why pick on something with 60% annualized growth, increasing cash flow and zero debt? Last nine quarters of shrinking operating expenses and steadily growing revs equals some very healthy profit growth for the company and in one of the worst business environments in modern history.
Have you used WEBX's product in a real life business environment?
No, but I've read the comments of lots of people who have (including yours, now). They are growing fastest in Fortune 500 companies after having started out giving the product away in the early days to mainly high tech firms with lots of early adopters. They had to cut a lot of them off when they couldn't pay the bill. From what I hear, there is a vast improvement in the conferencing product from those days. They made a lot of investments in the infrastructure.
How long ago did you use web meeting?
They're hiring in case you know anybody from your old company who still needs a job.
webex.com |
