Agreed, looks interesting. Leave it with me @jcmleng @rh8178

@rh8178 and @jcmleng there are a whole bunch of HRIS SaaS businesses, several of which have compliance modules. Several years ago I used to own one of them, ELMO. It eventually got taken private.

I haven’t come across $KYP before. It looks like it is being well run. Is the low apparent revenue growth rate due to the transition from capital sales to SaaS, in which case it could be at an interesting point? I guess the SP progression of the last year is indicative of it both re-rating as it comes through the inflection point, and coming onto more investors’ radar screens as a SaaS transition.

I have no idea about its products, however, generally I’d note that there are several offerings out there doing HR compliance. And if it is focused on compliance, then it is probably a candidate to be taken out by one of the broader HRIS SaaS firms (more so that $XRO, maybe?) to round out their offerings, unless of course it can sustain a high multiple. With a forward EV/EBITDA of around 16, it is not expensive in the SaaS sector, where multiples of the larger high growth SaaS players after often north of 40.

I’d be interested to hear their story too. HRIS is quite a crowded space, so I’d be keen to understand if they are differentiated in any meaningful way.

Disc. Not held

Thanks @mikebrisy and @jcmleng - exactly what this forum is for - testing my ideas. @Strawman if you can't get the CEO try the CRO (Chief Revenue Officer), I reckon he'd be as good to get on (or better still both!).

Just had a look at this on, I agree it is interesting/

I recall the CV Check business from a while back - new CEO, rebrand, and a shift from one-off checks to a SaaS platform. The SaaS growth looks promising, with 60% of revenue from new customers.

As a detail person, I liked the product demo to help understand the product: https://youtu.be/j6lfuZJShUQ?t=2268. The new compliance platform integrates with existing HR systems and targets the SME market, which they see as underserved. They argue enterprise solutions are overpriced for SMEs, while their product offers a cleaner UI and mobile integration. The strategy seems to be: get customers onto the platform, then cross-sell.

Criminal checks remain ~50% of revenue and are flat, but compliance SaaS is growing ~$5m a year over the past two years. Valuation is around 4x sales and 7x ARR. Looks worth a deeper look.

@RogueTrader not sure Claude would want the official buys shared here right after he’s just posted them on the website — it might seem a little unfair to his subscribers

@Magneto true except for the fact he's been calling it a buy since 2 Aug last year (when I first jumped in at 11c.) DMX also were loudly calling it a buy at the time.

@RogueTrader fair point — though I think there’s a difference between highlighting something as attractive and posting the official buy alerts that subscribers are paying for. But all good.

Might even drum up a few new subscribers.. it's like free advertising

Yes @Schwerms that's the approach I take with using MarcusToday tables and charts in some of my forum posts here, gold price data from Goldprice.org, data from FNArena, etc. As long as the sources are correctly attributed/referenced, it can only drive traffic to their websites where people want more of the same. After all, we are only ever sharing a very small portion here of what paying subscribers get access to, and are raising awareness of their offering.

In this case, @RogueTrader provided the link to the reccomendation, which, when clicked on, denies access to non-subscribers, so it's one thing to know that Claude has called a company a buy, it's another thing to know why, and paid subscribers get those details, i.e. why he thinks it's a buy, the risks, what he's watching with this company, when he'd sell, all of that.