Investment Pitches

Pitch Summary:
Endava (DAVA) is an IT services provider with expertise in such areas as payments, tech/media/telecom, banking & capital markets, mobility, and insurance. DAVA enables their customers to implement their digital transformation initiatives, which are technology projects designed to both improve cost structures and drive revenue growth. DAVA is a company we owned in the past but sold due to the company (and industry) experiencing a slowdown in demand during 2022 and early 2023 after a period of outsized growth following the pandemic. We believe the demand environment has stabilized and could improve in the future, and DAVA should be a beneficiary.

BSD Analysis:
NCG re-entered DAVA after previously selling during the IT services demand slowdown in 2022-2023. The manager believes the challenging demand environment has stabilized and positions DAVA for recovery. The company's expertise spans high-growth areas including payments, fintech, telecommunications, and insurance technology. NCG's investment thesis centers on DAVA's role in enabling digital transformation initiatives that both reduce costs and drive revenue growth for clients. The manager views the previous demand weakness as cyclical rather than structural, following a period of exceptional growth during the pandemic. With demand conditions appearing to stabilize, NCG expects DAVA to benefit from renewed client spending on digital transformation projects. The company's specialized expertise in key verticals should position it well for market recovery. This re-entry reflects NCG's confidence in DAVA's long-term competitive position despite near-term headwinds.

Pitch Summary:
Guidewire Software (GWRE) provides a software platform for P&C insurance companies to run their businesses (policies, claims, billing, data & analytics). Traditionally, P&C insurance companies have used legacy, on-premise solutions or homegrown systems, which have difficulty scaling as companies grow. GWRE currently has >500 customers and targets the Top 2,000 insurers worldwide. GWRE is a company we owned in the past but sold due to a business model transition which caused some growing pains. They are now mostly through the transition and are experiencing increased adoption of their next generation platform as more and more insurers are moving their core systems to the cloud. Following many years of increased investment in product and go-to-market initiatives, GWRE should be in position to deliver solid revenue growth and improved profit margins and free cash flow.

BSD Analysis:
NCG re-initiated a position in GWRE after previously exiting during the company's challenging business model transition period. The manager believes GWRE has successfully navigated its transformation and is now positioned to benefit from accelerating cloud adoption among P&C insurers. With over 500 existing customers and a target market of 2,000 top insurers globally, GWRE has significant room for expansion. The investment thesis centers on insurers' need to replace legacy, on-premise systems that cannot scale effectively. NCG expects GWRE's next-generation cloud platform to drive increased adoption as digital transformation accelerates in the insurance industry. After years of heavy investment in product development and go-to-market capabilities, the manager anticipates GWRE will deliver improved financial metrics. The timing appears favorable as the company emerges from its transition phase with enhanced competitive positioning.

Pitch Summary:
Braze (BRZE) is a leading next-generation customer engagement platform that allows brands to deliver cross channel marketing campaigns to end customers in real-time. BRZE currently serves about 2,000 customers across a diverse range of verticals, including retail/ecommerce, media & entertainment, financial services, travel & hospitality, quick service restaurants, and social/messaging/gaming. With a next-generation platform addressing the modern needs of an enterprise, Braze is disrupting the market and gaining share from legacy competitors, demonstrated by recent revenue growth in the 30% range with 70%+ gross margins.

BSD Analysis:
NCG added BRZE as a new position, attracted by its leadership position in next-generation customer engagement technology. The manager emphasizes BRZE's ability to deliver real-time, cross-channel marketing campaigns, which represents a significant advancement over legacy solutions. With approximately 2,000 customers spanning diverse verticals from retail to gaming, BRZE has demonstrated strong market penetration across multiple industries. The investment thesis is supported by impressive financial metrics, including 30% revenue growth and gross margins exceeding 70%. NCG views BRZE as successfully disrupting the customer engagement market by capturing share from older, less capable competitors. The platform's modern architecture addresses current enterprise needs that legacy systems cannot adequately serve. This positioning should enable BRZE to continue gaining market share while maintaining strong profitability metrics.

Pitch Summary:
Medpace Holdings (MEDP) is a full service CRO (contract research organization) focused primarily on small and mid-sized biopharma companies (75-80% small biopharma, 15-20% mid-sized biopharma, 0-5% large pharma). The small biopharma CRO market typically grows faster than the mid/large pharma market, and MEDP has carved out a solid competitive position in this area. We believe MEDP is positioned to sustain strong growth, driven by a combination of market growth (biotech spending) and market share gains, while maintaining a healthy margin profile.

BSD Analysis:
NCG initiated a position in MEDP based on its specialized focus on the faster-growing small and mid-sized biopharma CRO market segment. The manager highlights MEDP's competitive positioning in serving smaller biotech clients, which typically drive higher growth rates than large pharma relationships. The investment thesis centers on MEDP's ability to benefit from both overall market expansion in biotech spending and continued market share gains within this niche. The fund expects MEDP to sustain strong revenue growth while maintaining healthy profit margins. This positioning in the small biopharma CRO space provides MEDP with exposure to the most dynamic segment of drug development. The manager's confidence in MEDP's competitive moat and growth trajectory reflects their belief in the company's specialized service offering. NCG views MEDP as well-positioned to capitalize on the ongoing biotech investment cycle.

Pitch Summary:
Workday (WDAY) is a leading cloud software company with solutions in HCM (Human Capital Management) and finance. They have >10k customers including >50% of the Fortune 500. They continue to gain share from legacy on premise software providers who have been slower to transition these solutions to the cloud. WDAY targets annual subscription revenue growth in the high teens with expanding margins.

BSD Analysis:
NCG's investment in Workday capitalizes on the ongoing cloud migration trend in enterprise software, particularly in HCM and financial management solutions. The company's impressive customer base of over 10,000 clients, including more than 50% of Fortune 500 companies, demonstrates strong market penetration and enterprise-grade capabilities. Workday benefits from a significant competitive moat as legacy on-premise software providers struggle with cloud transitions, creating sustained market share gains. The company's guidance for high-teens subscription revenue growth with expanding margins indicates both top-line momentum and operational leverage. The HCM and finance software markets represent large addressable opportunities with high switching costs once implemented. Workday's cloud-native architecture provides advantages over traditional vendors attempting cloud conversions.

Pitch Summary:
Adobe (ADBE) is a leading cloud software company serving individuals, small-to-mid sized businesses, and large enterprises. They have two business segments: the digital media business is comprised of Creative Cloud and Document cloud and the digital experience business hosts the Experience Cloud. We have owned ADBE in the past and decided to buy it back recently. Following the strong growth periods of 2020-2021, many software companies experienced a growth slowdown in the second half of 2022 but this has normalized. ADBE has also quickly adopted AI and this should enhance their product offerings. ADBE should be able to deliver double digit plus revenue growth, even as they approach $20B in annual revenue, and they continue to deliver strong profitability.

BSD Analysis:
NCG's repurchase of Adobe reflects confidence in the company's recovery from the 2022 software sector slowdown and its positioning for renewed growth. The fund highlights Adobe's diversified business model across Creative Cloud, Document Cloud, and Experience Cloud, serving a broad customer base from individuals to large enterprises. A key catalyst is Adobe's rapid AI integration, which should enhance product capabilities and drive user engagement across its creative and document management platforms. Despite approaching $20B in annual revenue scale, NCG expects Adobe to maintain double-digit revenue growth, demonstrating the durability of its subscription model and market leadership. The combination of normalized growth trends post-2022 and AI-driven product enhancement creates a compelling investment opportunity. Strong profitability metrics support the growth investment thesis.

Pitch Summary:
Kinsale (KNSL) is a specialty insurance company focused on the excess & surplus (E&S) segment. We have owned the company in our smaller cap strategies since the IPO in 2016. The market cap is now around $10B so we migrated it into the large cap strategy. They have an experienced management team that has been able to deliver strong premium growth and earnings growth over many years. They operate in a large market opportunity and focus on maintaining disciplined underwriting and strong claims management, and they have a technology platform that allows them to have a lower cost structure than many of their peers.

BSD Analysis:
NCG presents a compelling bull case for Kinsale Capital Group, highlighting the company's successful track record since its 2016 IPO and recent graduation to large-cap status with a $10B market cap. The fund emphasizes management's proven ability to deliver consistent premium and earnings growth through disciplined underwriting practices and superior claims management. The investment thesis centers on Kinsale's competitive advantages in the excess & surplus insurance market, including a technology-enabled platform that provides cost structure benefits versus traditional competitors. The E&S segment represents a large addressable market with attractive growth dynamics. NCG's long-term ownership since the IPO demonstrates conviction in the business model and management team. The migration from small-cap to large-cap strategies reflects the company's successful execution and scale achievement.

Pitch Summary:
DexCom (DXCM) has the leading CGM (continuous glucose monitoring) system in diabetes care. CGM has been taking share from intermittent fingerstick monitoring since its introduction. Over the years, DXCM has enhanced accuracy and functionality of the system, expanded accessible patient populations through new indications, created partnerships with leading insulin pump companies, improved reimbursement coverage, and they continue to grow in new geographies. As these pieces have fallen into place, DXCM has delivered strong revenue growth with increasing levels of profitability, and we believe it can continue into the future.

BSD Analysis:
The manager's bullish case for DexCom is built on the company's market leadership in continuous glucose monitoring and successful execution across multiple growth vectors. DXCM has established dominance in the CGM market, which continues to gain share from traditional fingerstick monitoring methods. The investment thesis is supported by the company's comprehensive strategy including continuous product improvements for enhanced accuracy and functionality, expansion into new patient populations through additional indications, and strategic partnerships with insulin pump manufacturers. Geographic expansion and improved reimbursement coverage provide additional growth catalysts. The manager highlights DXCM's track record of strong revenue growth coupled with increasing profitability, demonstrating operational leverage as the business scales. The combination of market leadership, multiple growth drivers, and improving financial metrics creates a compelling long-term investment opportunity in the expanding diabetes care market.

Pitch Summary:
Vertiv Holdings (VRT) is a key player in providing backup power and thermal management to datacenters. The worldwide datacenter capacity is poised to continue growing and so is the volume of traffic moving through the datacenters. This is being driven by AI and high performance computing, enterprise workloads being moved to the cloud, social media proliferation, among other things. VRT operates in a competitive environment where the top 3 companies possess the majority of share and they all benefit from growth in the end market. However, VRT is the only pure play focused solely on this opportunity. We believe VRT can continue to capitalize on the strong demand backdrop, while delivering solid revenue growth and margin expansion.

BSD Analysis:
The manager's bullish thesis on Vertiv Holdings centers on the company's pure-play exposure to the rapidly expanding datacenter infrastructure market. VRT provides critical backup power and thermal management solutions essential for datacenter operations, positioning it to benefit from multiple growth drivers including AI, high-performance computing, cloud migration, and social media expansion. While operating in a competitive oligopoly with the top three players controlling majority market share, VRT's differentiation lies in its singular focus on datacenter infrastructure versus diversified competitors. The investment case is supported by strong secular demand trends driving worldwide datacenter capacity growth and increasing traffic volumes. The manager expects VRT to capitalize on this favorable backdrop through both revenue growth and margin expansion, leveraging its specialized expertise and market position. This pure-play positioning in a high-growth, mission-critical market segment provides compelling investment characteristics with multiple demand catalysts supporting long-term growth.

Pitch Summary:
Castle Bioscience (CSTL) is a medical diagnostics company with a portfolio of tests addressing skin cancer, esophagus cancer, and mental health. CSTL is another name we have owned in the past, with our sale due to uncertainty regarding their acquisition activities. Since that time, their skin cancer franchise has continued to deliver solid volume growth and the acquisitions have turned out to be solid contributors to the growth of the business. The company remains under-penetrated in all their markets, so we believe growth should remain solid. Valuation has compressed significantly over the last three years, and we believe they have the balance sheet strength to continue driving growth while moving toward cash flow breakeven in 2025.

BSD Analysis:
The manager's re-entry thesis for Castle Bioscience reflects validation of the company's acquisition strategy and continued market expansion opportunities. CSTL operates a diversified diagnostics portfolio spanning skin cancer, esophageal cancer, and mental health testing markets. The manager previously exited due to concerns about acquisition activities, but subsequent performance has demonstrated that these deals have become solid growth contributors alongside the core skin cancer franchise. The investment case is strengthened by significant under-penetration across all target markets, providing sustained growth runway. A key catalyst is the expected progression toward cash flow breakeven in 2025, representing an important financial inflection point. The valuation compression over the past three years has created an attractive entry opportunity, while the company's strong balance sheet provides financial flexibility to continue growth investments. This combination of market expansion potential, acquisition validation, and improving financial trajectory supports the bullish thesis.

Pitch Summary:
Tandem Diabetes Care (TNDM) offers a next-generation insulin pump for patients with diabetes. TNDM is a company we have owned in the past but sold as they went through a period of slowing growth rates due to a lack of product innovation. With 4 new product launches expected in 2024, the stage is set for a reacceleration of growth in this large and growing end market. With expectations low and valuation depressed from historical averages, there is room for upside if TNDM can deliver on their 2024 guidance and the new products rollout as expected.

BSD Analysis:
The manager presents a turnaround thesis for Tandem Diabetes Care based on an upcoming product innovation cycle following a period of stagnation. TNDM previously experienced slowing growth due to lack of product innovation, leading to the manager's earlier exit from the position. The investment case centers on four new product launches scheduled for 2024, which should catalyze growth reacceleration in the large and expanding diabetes care market. The timing appears opportune given depressed expectations and valuation levels compared to historical averages, creating asymmetric risk-reward potential. The manager's confidence stems from TNDM's next-generation insulin pump technology and the company's ability to execute on product development. Success hinges on the company meeting 2024 guidance and successful rollout of the new product portfolio. This represents a classic product cycle recovery play in a growing healthcare market with significant upside potential if execution meets expectations.

Pitch Summary:
Clearwater Analytics Holdings (CWAN) provides a software platform to simplify investment accounting and analytics for asset managers, insurance companies, and corporations. The company has been gaining share in a fragmented and large end market, and is currently generating around $400m in revenue of a targeted multibillion dollar end market opportunity. CWAN was part of the 2021 IPO class – many of these companies came public at high valuations and with high expectations, and then experienced poor stock performance. CWAN delivered solid fundamentals throughout that period, most recently experiencing >20% revenue growth and 30% EBITDA margins in Q3'23, but the stock has not done much since the IPO. With a more attractive valuation now, we believe there is opportunity for compounding of company value ahead.

BSD Analysis:
The manager's bullish case for Clearwater Analytics is built on a valuation opportunity following post-IPO underperformance despite strong fundamental execution. CWAN operates in a large, fragmented market for investment accounting and analytics software, serving asset managers, insurance companies, and corporations. The company has demonstrated consistent market share gains while generating approximately $400 million in revenue from a multi-billion dollar addressable market, indicating significant growth runway. Despite being part of the challenged 2021 IPO class, CWAN has maintained strong operational performance with over 20% revenue growth and healthy 30% EBITDA margins. The investment thesis centers on the disconnect between solid business fundamentals and depressed stock performance since the IPO, creating an attractive entry point. The manager believes this valuation reset provides opportunity for value compounding as the market recognizes CWAN's consistent execution and large market opportunity.

Pitch Summary:
Natera (NTRA) is a leader in cell-free DNA diagnostics, primarily dedicated to oncology, women's health, and organ health. Their goal is making personalized genetic testing and diagnosis part of the standard of care to drive earlier and targeted interventions to improve patient outcomes. NTRA has developed a leadership position with tests like Signatera in oncology, Panaroma for NIPT (non-invasive prenatal testing), and Prospera for organ transplant assessment. Signatera addresses a newer area of oncology testing called MRD (minimum residual disease), which is experiencing significant growth and in which NTRA has an early mover advantage. After years of heavy investment to drive revenue growth, NTRA continues to deliver solid topline growth and is now on the cusp of being cash flow positive.

BSD Analysis:
The manager's bullish thesis on Natera centers on the company's leadership position in cell-free DNA diagnostics across three high-growth healthcare segments. NTRA has established market-leading products including Signatera for oncology MRD testing, Panorama for prenatal screening, and Prospera for organ transplant monitoring. The investment case is particularly compelling in the MRD (minimum residual disease) oncology testing market, where NTRA holds an early mover advantage in a rapidly expanding segment. The company's mission to make personalized genetic testing standard of care aligns with broader healthcare trends toward precision medicine. After years of significant R&D investment to build market leadership, NTRA is approaching an inflection point with continued strong revenue growth while nearing cash flow breakeven. This combination of market leadership, early positioning in high-growth segments, and improving financial metrics supports the bullish investment thesis.

Pitch Summary:
Endava (DAVA) is an IT services provider with expertise in such areas as payments, TMT, banking & capital markets, mobility, and insurance. DAVA enables their customers to implement their digital transformation initiatives, which are technology projects designed to both improve cost structures and drive revenue growth. DAVA is a company we owned in the past but sold due to the company (and industry) experiencing a slowdown in demand during 2022 and early 2023 after a period of outsized growth following the pandemic. We believe the demand environment has stabilized and could improve in the future, and DAVA should be a beneficiary.

BSD Analysis:
The manager's bullish re-entry thesis for Endava is based on a cyclical recovery in IT services demand following a post-pandemic normalization period. DAVA specializes in high-value digital transformation projects across key verticals including payments, telecommunications, banking, and insurance sectors. The company's focus on helping clients improve cost structures while driving revenue growth positions it well for the ongoing digitization trends. The manager previously exited the position during the 2022-2023 demand slowdown that affected the broader IT services industry after pandemic-driven growth. The investment rationale centers on the belief that demand conditions have stabilized and are poised for improvement, with DAVA positioned to benefit from renewed enterprise spending on digital initiatives. The company's specialized expertise in critical business functions should drive market share gains as digital transformation accelerates across industries.

Pitch Summary:
Guidewire Software (GWRE) provides a software platform for P&C insurance companies to run their businesses (policies, claims, billing, data & analytics). Traditionally, P&C insurance companies have used legacy, on-premise solutions or homegrown systems, which have difficulty scaling as companies grow. GWRE currently has >500 customers and targets the Top 2,000 insurers worldwide. GWRE is a company we owned in the past but sold due to a business model transition which caused some growing pains. They are now mostly through the transition and are experiencing increased adoption of their next generation platform as more and more insurers are moving their core systems to the cloud. Following many years of increased investment in product and go-to-market initiatives, GWRE should be in position to deliver solid revenue growth and improved profit margins and free cash flow.

BSD Analysis:
The manager presents a re-entry thesis for Guidewire Software, viewing the company as having successfully navigated a challenging business model transition to cloud-based solutions. GWRE addresses a critical pain point for P&C insurers who rely on outdated legacy systems that struggle to scale with business growth. With over 500 existing customers and a target market of the top 2,000 global insurers, the company has significant runway for expansion. The investment rationale hinges on the accelerating cloud migration trend within the insurance industry and GWRE's next-generation platform gaining traction. After years of heavy investment in product development and go-to-market capabilities during the transition period, the manager expects the company to now deliver improved operational metrics. The thesis reflects confidence in GWRE's ability to capitalize on the digital transformation needs of the insurance sector while generating stronger financial returns.

Pitch Summary:
Braze (BRZE) is a leading next-generation customer engagement platform that allows brands to deliver cross channel marketing campaigns to end customers in real-time. BRZE currently serves about 2,000 customers across a diverse range of verticals, including retail/ecommerce, media & entertainment, financial services, travel & hospitality, quick service restaurants, and social/messaging/gaming. With a next-generation platform addressing the modern needs of an enterprise, Braze is disrupting the market and gaining share from legacy competitors, demonstrated by recent revenue growth in the 30% range with 70%+ gross margins.

BSD Analysis:
The manager's bullish case for Braze centers on the company's position as a market disruptor in the customer engagement platform space. BRZE's next-generation technology stack enables real-time, cross-channel marketing campaigns, addressing modern enterprise needs that legacy competitors struggle to meet. The diversified customer base of approximately 2,000 clients across multiple high-growth verticals provides revenue stability and expansion opportunities. The investment thesis is supported by strong fundamental metrics, including 30% revenue growth and impressive 70%+ gross margins, indicating both market traction and operational efficiency. The manager views BRZE as successfully gaining market share from established players through superior technology and platform capabilities. This positioning in the growing marketing technology sector, combined with strong unit economics, suggests sustainable competitive advantages and continued growth potential.

Pitch Summary:
Medpace Holdings (MEDP) is a full service CRO (contract research organization) focused primarily on small and mid-sized biopharma companies (75-80% small biopharma, 15-20% mid-sized biopharma, 0-5% large pharma). The small biopharma CRO market typically grows faster than the mid/large pharma market, and MEDP has carved out a solid competitive position in this area. We believe MEDP is positioned to sustain strong growth, driven by a combination of market growth (biotech spending) and market share gains, while maintaining a healthy margin profile.

BSD Analysis:
The manager presents a bullish thesis on Medpace Holdings based on its strategic focus on the faster-growing small biopharma CRO market segment. MEDP has established a strong competitive moat by concentrating 75-80% of its business on small biopharma clients, which typically experience higher growth rates than mid/large pharma segments. The investment rationale centers on two key growth drivers: overall market expansion driven by increased biotech spending and MEDP's ability to gain market share within this specialized niche. The manager emphasizes the company's ability to maintain healthy margins while scaling, suggesting operational efficiency and pricing power. This positioning in the small biopharma space represents a differentiated strategy that should benefit from the continued innovation and funding in the biotech sector. The thesis reflects confidence in MEDP's ability to compound growth through both organic market expansion and competitive gains.

Pitch Summary:
During the quarter, we initiated a new position in Spectrum Brands Holdings (SPB), another deep value company with multiple self-help catalysts. After several divestitures in recent years, Spectrum is mostly a pureplay Consumer Staples company focusing on pet care and home and garden supplies, including recognizable brands such as Spectracide lawn and garden products and SmartBone dog treats. SPB is in the process of transforming itself from an acquisition-oriented holding company into an integrated operating company with sharper focus. As part of that process, the company recently divested its Hardware and Home Improvement segment, selling it to the Swedish conglomerate Assa Abloy for $4.3 billion in cash. We owned Spectrum when this divestiture was originally announced but exited our position when the Department of Justice (DOJ) sued to block the sale. That action threatened to derail SPB's efforts to improve its balance sheet and shed a highly discretionary segment that was noncore to the company's strategy. We recently got clarity on this overhang, when the DOJ reached a settlement with Assa Abloy, allowing the sale to go through. This gives SPB ample capacity to repurchase shares at a steep discount to intrinsic value while setting the stage for operational improvements. Meanwhile, the stock trades at just 7X next year's EBITDA and 5X to 5.5X normalized EBITDA.

BSD Analysis:
Heartland initiated a new position in Spectrum Brands following resolution of regulatory uncertainty around a major divestiture. The fund views SPB as a deep value opportunity with multiple self-help catalysts as the company transforms from an acquisition-oriented conglomerate into a focused consumer staples operator. The successful $4.3 billion sale of the Hardware and Home Improvement segment to Assa Abloy removes a highly discretionary, non-core business while significantly strengthening the balance sheet. With regulatory approval secured after DOJ settlement, SPB now has substantial financial flexibility to repurchase shares at what management considers a steep discount to intrinsic value. The remaining business focuses on higher-quality pet care and home & garden segments with recognizable brands like Spectracide and SmartBone. At just 7x next year's EBITDA and 5-5.5x normalized EBITDA, the valuation appears compelling for a simplified, focused consumer staples company with enhanced capital allocation optionality and operational improvement potential.

Pitch Summary:
NOV Inc. (NOV), our largest holding, is a deep value company benefiting from a self-help business strategy. NOV is a leading oilfield services company that provides technical expertise, advanced equipment, and operational support for the oil and gas industry. The company survived a prolonged bear market for oil prices that lasted from 2014 through COVID-19 related demand destruction in 2020. During this time, the industry went into capital starvation mode. NOV used the industry downturn to streamline its cost structure and retire debt in order to maintain an industry-leading balance sheet. The company has eliminated $850 million in structural fixed costs since the start of 2019. Despite heavy cost-cutting, NOV never stopped developing new value-added product applications, which strengthened its position as weaker competitors went away and the industry outlook subsequently improved. This should allow NOV to generate strong returns on capital as the energy upcycle unfolds, with offshore wind and other renewables providing capital-efficient ancillary growth for the company.

BSD Analysis:
Heartland positions NOV as their largest holding, representing a deep value opportunity with significant self-help catalysts in the oilfield services sector. The manager emphasizes NOV's survival through the prolonged oil bear market from 2014 through COVID-19, during which the company aggressively restructured by eliminating $850 million in fixed costs since 2019 while maintaining an industry-leading balance sheet. Crucially, NOV continued investing in R&D and new product development even during the downturn, strengthening its competitive position as weaker players exited the market. The fund expects this operational leverage to drive strong returns on capital as the energy upcycle unfolds. Additionally, NOV's exposure to offshore wind and renewable energy projects provides capital-efficient growth opportunities beyond traditional oil and gas markets. The combination of a leaner cost structure, enhanced market position, and diversified end markets positions NOV to capitalize on the improving energy sector fundamentals.

Pitch Summary:
Veeva Systems provides cloud-based software services to pharmaceutical and biotech companies. While best known for its industry-leading customer relationship management (CRM) software, Veeva offers dozens of products for both commercial and R&D use, helping clients navigate the complex regulatory environment for pharmaceuticals. Before its November investor day, Veeva spooked the market by cutting fourth-quarter revenue guidance citing deteriorating economic conditions. The company specifically called out the services segment, which comprises 20% of total sales, as clients more readily defer or insource these services during lean times. Veeva has been one of our strongest performers since we first bought it in 2017. Management has been innovative and displayed strong execution throughout. So looking beyond the challenging economy, we are focusing on various company initiatives that could help sustain or even accelerate growth. These include a life-science marketing-automation solution, a patient and prescriber data platform to challenge market-leader IQVIA, and the transition from its Salesforce-powered CRM to its own fully insourced offering, to name a few. During the investor day, management increased its total addressable market estimate from $13 billion to $20 billion in light of these new opportunities. While most of these initiatives will take years to bear fruit, some could eventually become significant contributors to revenue and profitability. In the meantime, Veeva still has a sturdy base of business that should grow double digits and healthy margins should expand as the current investment cycle abates.

BSD Analysis:
Brown Capital maintains conviction in Veeva Systems despite near-term guidance cuts, viewing the company as a long-term winner in pharmaceutical software. The fund's thesis is built on Veeva's dominant position in life sciences CRM and expanding platform of regulatory compliance solutions for pharma and biotech companies. While acknowledging cyclical pressure on the services segment (20% of revenue) due to client deferrals and insourcing, Brown Capital emphasizes management's track record of innovation and execution since their 2017 investment. Key growth drivers include new initiatives in marketing automation, a patient/prescriber data platform to compete with IQVIA, and the strategic transition from Salesforce-powered CRM to a proprietary solution. The expansion of total addressable market estimates from $13 billion to $20 billion at the November investor day validates the long-term opportunity. Brown Capital expects the core business to deliver double-digit growth with margin expansion as current investment cycles mature. The fund's patient approach reflects confidence in Veeva's ability to capitalize on the complex regulatory environment and digital transformation needs of the pharmaceutical industry.