TSP Weekly Tech Stock Update—March 29, 2025

This Week: Securing machine identities, AI-as-a-Service, YouTube momentum, SAIL earnings review, Jefferies upbeat on MSFT, Needham likes NOW, Zscaler's branch push, Macquarie bullish on HUBS & more.

Hello from Rob…

—SailPoint (SAIL, $19.54) shares this week fell 3.5% even though the provider of identity security solutions for the enterprise reported better-than-expected FQ4 (Jan.) results and offered above-consensus FY’26 (Jan.) guidance.

In FQ4, total revenue rose 18% to $240.1 million, topping the consensus of $229.6 million. Total ARR gained 29% to $877 million, with SaaS ARR up 39% to $540 million.

For FY’26, SailPoint sees EPS of 14 cents to 18 cents, above the consensus of 9 cents, on total revenue of $1.025 billion to $1.035 billion (+19% to +20%) versus the consensus of $1.02 billion. The company is forecasting total ARR of $1.075 billion to $1.085 billion (+ 23% to +24%).

SailPoint just went public in February at $23 a share. Earlier this month, the stock traded to a new post-IPO low of $17.56. This week’s low was $18.64.

For more on SailPoint, see TSP Weekly Update—Feb. 22, 2025.

—Braze (BRZE, $37.51) is paying $325 million in cash and stock to acquire OfferFit, an AI decisioning vendor. AI decisioning agents can autonomously experiment, learn and deliver personalized experiences. Brands have seen improved uplift by using OfferFit’s AI technology to personalize more than 100 characteristic within an email to promote new customer sign-ups or optimize reactivation campaigns for inactive users. Braze will integrate OfferFit into its broader customer engagement platform.

*Inside This Issue: 2 Stocks To Consider On Further Weakness

—Paid subscribers will receive the April 2025 PDF of Tech-Stock Prospector (TSP #278) via email on Tuesday, April 8.

—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.