VGI Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the twelve months ended 31 December 2021 (CY21), VGI Partners Global Investments Limited (ASX:VG1) generated a net return of -2.5%. VG1’s post-tax Net Tangible Assets (NTA) per share stood at $2.34 as of 31 December 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
VGI Partners, in its Q4 2021 investor letter, mentioned Qualtrics International Inc. (NASDAQ: XM) and discussed its stance on the firm. Qualtrics International Inc. is a Provo, Utah-based software company with a $17.1 billion market capitalization. XM delivered a -15.11% return since the beginning of the year, while its 12-month returns are down by -41.37%. The stock closed at $30.05 per share on January 31, 2022.
Here is what VGI Partners has to say about Qualtrics International Inc. in its Q4 2021 investor letter:
“Our analysis shows Qualtrics is the world leader in experience management (EM) software. EM software is a category that has been turbocharged by the pandemic as corporations and governments are striving to better understand their customers and employees in order to improve satisfaction, retention and in turn maximise the dollar return on each customer. Customer experience was previously assessed via surveys and other forms of analog feedback. Today Qualtrics allows its clients to assess their customers’ feedback and improve the experience with more sophisticated tools (e.g. Net Promoter Scores) and in real time via multiple data feeds which include call centre conversations, emails, online chatbots, social media feeds and so on.
A good example of a Qualtrics customer is JetBlue Airlines, a major American low-cost airline. JetBlue use the platform to analyse customer feedback and in turn better tailor pricing for flights and also improve the in-flight experience, in order to expand Net Promoter Scores (NPS) and increase customer retention through this real-time feedback. For example, by combining flight frequency and pricing studies, JetBlue found that 82% of their passengers didn’t care about free bags and instead preferred cheaper ticket prices. JetBlue responded by rolling out different rate structures and pricing options for passengers, which were well received. By taking a deep dive into passengers’ feedback in Philadelphia, JetBlue was able to trace dissatisfaction to the lack of airport shops and amenities open early in the morning, where JetBlue responded quickly by simply passing out water, juice, and coffee at the gate to boost customer satisfaction.
Large corporations are accelerating their usage of Qualtrics software with 85% of the Fortune 100 using the platform. The incremental spend with Qualtrics by existing customers is impressive and continues to grow in excess of 20%. This is underpinned by expanding usage along with the adoption of additional modules which allow clients to gain greater depth and breadth of data from the Qualtrics platform. In addition, new customers add to the growth of existing customers resulting in what we believe will be revenue growth of over 30% p.a. over the coming years…” (Click here to see the full text)
Our calculations show that Qualtrics International Inc. (NASDAQ: XM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. XM was in 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 37 funds in the previous quarter. Qualtrics International Inc. (NASDAQ: XM) delivered a -36.39% return in the past 3 months.
In October 2021, we also shared another hedge fund’s views on XM in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
