DTOL is a small ($1.0B market cap) tech name that operates in the learning management systems space. It IPOd in a challenging environment (late 2021), and since then it has had to prove itself and execute on growing its fundamentals. We feel it has effectively accomplished proving itself since its IPO, its forward growth rates are impressive, and analyst estimates have been trending higher. It has flipped to positive earnings now, it generates decent free cash flows, and its valuation has expanded, which we feel is a positive signal that investors are willing to pay more as they expect the name to continue to deliver and beat analyst estimates. We like the momentum, in our opinion it is not overly expensive yet, and we think it can do well from here.
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