Saturday, May 31, 2008

Internap Investor Presentation - Cowen and Company 20/20 Technology Media Telecom Conference

Interesting presentation. As I'm usually very critical about the lack of transparency (metrics) from this management team, I must really congratulate with the new CFO as it sounds to me that several issues have been addressed.

Going through some of the slides, available here, with my comments highlighted in RED. You will have to click on the slides to read the comments better.

I know I'm a pain, but I would enjoy another metric. As some companies do for churn, I would talk about both the number of customers and the percentage of revenues involved.

Example: Company A has 100 customers and just one is buying the bundled services concept. That's just 1% of customers. That single customer is doing 30% of revenues. The bundled service concept is representing 30% of total revenues. This small example is extreme, but it is just to say that an additional datum could help highlight the size of the customers interested in the service better (I speculate more the smaller ones, for Internap...). Even if we have a good number of customers, how much is involved in terms of revenues? JMHO.

Another great slide. GK also talked about "non recurring" revenues in IP Services, which was exactly my expectation.

Going by heart, Internap always mentioned FCP sales in general in their filings, like "minus 5%" of total revenues in the IP category. It is important to have the exact numbers highlighted as this is the only way to properly follow the bandwidth growth/price decline trend, which gets lost in a single number.

Another great slide, and more clarity on the expansion plan (location, squarefootage, timing...). I was personally hoping some plans were closer to completition.

Some "new" wins are actually old Vistalstream customers (National Geo...) and I noticed lately that most announced wins (NYMag - thanks to JB for the heads up - or National Geo, etc.) are actually using other CDNs - Limelight or Panther Express, for example...

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