Customer concentration in Tech sector
$DAVA (payment solutions specialist that provides consultancy services) Q1 2023 earnings call has an interesting commentary on US tech sector:

" would be around the 5% mark of our total business that is exposed to West Coast tech clients...It's been growing in the 20% to 30% range...probably shrinking 25%, 30% now"

A real swing, but it does make sense for tech companies to pull back on spending in dramatic fashion.

$ZI has 44% of its customers in the software industry for FY 2021. At the RBC conference yesterday, they made a comment that growth in FY 2023 is likely slowing down to high teens, which is a massive deceleration from 30-40% in the past. Their saving grace is likely the 56% that is non-tech!

From tailwinds to headwinds, industry concentration is a tricky one. E-commerce was a tailwind during lockdown, now it is a plague. And hospitality just flipped from heads to tails.
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