[Keep in mind, I know nothing andeverything I write is most...

[Keep in mind, I know nothing andeverything I write is most likely wrong]

From the company in response to myinquiry re Snare competitors. “Other [SNARE] competitors we see regularly arethe likes of Solarwinds, Sumologic and Logrythm and at the bottom end NXLog andothers”

SOLARWINDS

Share Price: Over the last year the SP has a high of 14.18 USD, low of 7.58 In Sept. and recently is trending up to currently 10.54 MC of 1.7b (so not at all comparable to PRO)

Rev and Earnings are down/flat YoY and QoQ with huge losses in q2 22 (622m loss to 176m rev), and the most recent on TradingView, q3 22, Rev 179m to 292m loss.

Per their recent https://investors.solarwinds.com/news/news-details/2022/SolarWinds-Announces-Third-Quarter-2022-Results/ these big losses seem to have more to do with accounting than business conditions, so take a look. It has to do with a good-will non-cash impairment charge. (due to big breach that was so publicized?) Adjusted EBITDA was 70.3m.

What I am really interested in is, is there an apples-to-apples product comparison to Snare and how is it performing?

So, based on what can best be described as a “sub-remedial” understanding of Snare, SIEM and log management, it appears that the comparable product is “Security Event Manager” which starts at $2,877 USD with a free trial available. https://www.solarwinds.com/security-event-manager Now the question is, can I tease out the numbers for this product?

I looked at most recent quarterly and annual reports and couldn’t find a break-out of individual software products. It probably exists, (maybe if I had access to conference call transcript database) but I can’t find it in the time I’m willing to invest in this.

Keep in mind, btw, that SolarWinds is most well known because of a cyberattack on its software, and the business is still doing well.

SUMOLOGIC

Negative income, but Rev is growing fast. 2019 155m (USD), 2020 202m, 2021 242m, and through q-3 of 2022, 220m! Wow. This is what Rev growth looks like. They are purposefully scaling in lieu of profitability. They are targeting 2026 for bottom line profit.

Comparable product: It looks like their software solution is very much in line with Snare Central, but again, I know nothing, and their customer growth is consistent with their rev growth. Take at look at p. 46 of their recent investor deck. https://investor.sumologic.com/static-files/5ee9e6a2-7b29-4eb8-ac8e-82db53cba727

Interestingly, yes, this is what PRO could be, but the growth percentage is similar, and SUMO’s Price-to-Sales is 5.41 and PRO’s is 2.5. PRO’s MC is 44m and SUMO is 1.4b

LOGRYTHM

This is a private company. It looks like they have a very impressive list of customers, just like every company listed here. This includes everyone’s favorite, Bass Pro Shops, UCLA and f’ing NASA. It looks like an apples-to-apples comparison. They claim to have 500 employees, and interestingly they are HQ’d in Boulder, CO, not far from PRO’s American sales office, Denver if I recall correctly.

NXLOG

Private company. Per the email I received from PRO, NXLog was listed as low-end competitor, and yet they list Verizon, JP Morgan and Fijitsu as customers. (I went back and looked at PRO investor deck, page 15, https://www.prophecyinternational.com/wp-content/uploads/ASXPRO_Investor-Presentation-May-2022.pdf and they list Fujitsu and Verizon as customers?? Do companies use more than one log management software? Or what’s up? Did we take their customers or visa-versa?)

Conclusion:

Not much, although I wish I got excited about PRO’s website and growth like I did when I looked at SUMO. Take a look! Unfortunately, the hour or so I spent on this didn’t reveal much to me other than, yes, it is a very competitive landscape and there are companies with huge leads, and also, 4m annual rev increase is not enough. PRO needs to be increasing its revenue by 4m + every quarter. PRO is cashed-up, they have all their ducks in a row, COVID is over, cyber crime is only getting worse… as an investor I’m relocating to Missouri for the next few quarters, the Show Me state.

Let’s go!