Readytech reported half year revenue of 58.3 million dollars. This was a 6.6% increase on the PCP. Local government was slower whilst other segments (universities, judicial etc were a little higher).

The general vibe of the report was that RDY was focusing on high TAM verticals and that this would see revenue growth accelerate in the near term. Whether you regard this as spin or not is possibly the key to your overall judgement of RDY's performance.

Net revenue retention of 102% appears strong (is there a reason a business chooses this metric over churn?) and they are certainly signing new and apparently significant clients.

They will need to grow hard to achieve their revenue targets of 160m - 170m by FY2027 but I wouldn't write them off. I liked Marc in the meeting @Strawman but maybe that's giving me cause for false trust. From a price perspective it's not far away from 12/12 lows despite incremental progress and the possibility of a high margin software business emerging at some point soon... I'm watching closely and would consider buying in if the price was right.

Love to hear others' thoughts

Bull case for this little discussed stock:

• Similar business model to Technology One.
• Subscription revenue compounding at 35% last several years without any hiccups.
• Profitable (although perhaps it should be more profitable than it is?)
• Revenue now 1/4 that of Technology One with growing list of clients and increased revenue from clients (upselling etc)
• Market cap of 394 mil compared with Technology One's market cap of 6.2 billion...

I suppose the question is, is their apparently poor profitability down to the gorilla game and Technology One's ascendancy or does their compounding revenue growth suggest that operating leverage will kick in at some point and this will be a winner?

One for a meeting if they were amenable @Strawman ?

Gaz