David Skok

Then try to find a way to make it profitable after that.

And that's the profitable part is that's when you might start to worry about, can I get my services to a 0% contribution margin?

Yeah, we do, actually.

And I'll tell you the rationale behind the Namely investment.

I'd actually come up with a very simple formula.

thing as a result of investing in a previous HR company called Tribe HR that got sold to NetSuite.

And the thesis there was pretty simple, which was millennials were entering the workforce.

They were all used to Uber, Facebook, Instagram, et cetera.

They were coming into the workforce and they were seeing applications like Workday and others like that that are incredibly painful to use.

The guys at both Zendesk and HubSpot were using Workday

And we were able to go to them and say, you know, what do you think of this product?

And they told us that they hated it.

They had to have the six page document next door to them to just go through an employee review.

So so the thesis was simple.

This new group of tech savvy workers were coming into the workforce and expecting to see the same quality of tools that they have in their consumer life on their mobile phone.

And they weren't getting it.

And whoever in the HR space.

built a product for the employees and the managers, not just the employee, not just the HR administrator, was going to do extraordinarily well.

And to my mind, namely, is the leader in that particular segment that we think is an important segment.

And then if you look at the space that they're running, which is the 52, actually, it's 20 to 2000 employees is the size range that they work in.