The Valens Company Inc. (VLNS)

[PR_12]

Very conservative on the call in regards to releasing financial estimates for Q4, but ton of good comments hidden in the call

-Some of the larger deals announced in Q3 didn't start shipping until final month or won't start shipping until Q4 - I assume that means we haven't even seen revenue coming in from those yet.

-Discussion about existing customer order size growing as product gets more popular in market - with the positive reaction to these products in market I think Valens is predicting the volumes to increase on existing SKUs - also talked about increasing margins with larger order sizes - i read this as larger revenues on smaller expenses as products mature - fantastic!

-Leadership on multiple occasions indicate they are very pleased with the pipeline they are seeing when responding to "future outlook" questions (they all say this, but the story backs up the claim so far!)

-A comment made about focusing on the overall market share Valens has in the 2.0 market and less about # of customers or # of skus - in short I think Valens is hinting that they think their ability to test products prior to launch will allow them to have some of the most popular SKUs in the market - and it won't be quantity of SKUs that matter over time, but rather finding the few #1 gems and mass producing them. I'm wondering if they have some data that shows this may be the case and that's why he was so comfortable making this statement - to say they are targeting 20% market share is one thing - to pivot the market's view to that fairly undiscussed statistic may be a hint of big things to come?

I still think the market mostly dislikes this ER - but I think this is one of those sneaky ones that will capture the attention of savvy investors. Look out in Q4...