@wonkeydonkey i thought what a good question for Gemini, so it says 9-10% of revenues, and that aligns with my recollections of disclosures on their calls. why isn't it 30-40% like some other software companies? my thinking here is that EOL has a large operating business as well, that is it isn't all software implementers but also traders and order implementers (although im sure they would not like that description, lol). are they spending enough? is profitability more of an objective than investment? i dont get that feeling here but I do think they spend what is required, like the recent security spend. are they being outspent? i guess they lose business then, and that certainly doesn't accord with management tone.

so i think it is the mix of biz, but interested to hear any other opinions, the AGM is 21/10 ill ask them

@wonkeydonkey, I think a lot of this is down to their business model per @Solvetheriddle's explainer.

I would add that part of the answer resides in their European growth strategy - mostly via M&A in recent years.

They have been acquiring capability (support) and geographic reach (Europe) and will likely keep going with this (US).

They've not just been acquiring revenue and playing the multiple arb / cost out game, which would have lowered their cost base as a percentage of revenue.

Instead they've been building their value prop as a one stop pan European SaaS and support solution.

So there's been limited cost synergies from this M&A activity.

This capability acquisition possibly reduces the appetite for R&D - perhaps they invest more heavily in DD to do the right M&A.

Op leverage has been on display as mgmt have said it would be with revenue growing faster than Opex and they are guiding for wider margins ahead, so relative cost base should decrease from here.

As @Solvetheriddle also mentions, they've recently invested in cyber capability / certifications. Post the failed M&A approach on them a year or so ago, they also restructured management and internal processes to make the whole business more scalable - I think I wrote on here at the time that EOL was growing up.

Seems to me they are maturing nicely but still in early adolescence with plenty of growth ahead.

Disc: Held

This is one of those industries that seems like it will need a heavy dose of a human-in-the-loop given its complexities and nuances.

The new CEO looks like a good appointment on first glance.

@Slomo im planning to get to the AGM this year, see u there?

I'd like to @Solvetheriddle but it clashes with AD8 which I've got more questions and concerns about so will be going to that one instead unfortunately.

Would be good to catch up after to get your insights.

I joined the EOL call this morning,no big insights, or reveals.

All looks good for a slow, smooth transition from Shaun to Ben but that's how these things tend to look at the beginning...

@Slomo , understandable with AD8, i will try and buttonhole Mike Ryan at EOL, meet up after sounds good

You can try "shirt-fronting" him like Tony Abbott promised with Vlad P.

Narrator: It never happened

:D