Top-line results were impressive as usual. ARR grew 17% (FX adjusted) to $64m with a healthy pipeline. The ongoing organic growth in both Australia and Europe is a highlight. Net revenue retention reached 111%, validating the 'one-stop-shop' strategy of bundling and upselling.

Below is my take on the qualitative elements from the 50-slide presentation, rather than a deep dive into the financials.

This call marked the transition from the outgoing CEO Shaun to Ben, the new CEO. Although, Shaun may find it hard to step away, along with his ongoing director role he will support M&A.

Ben’s European expertise and familiarity with the business, including AI integration, were impressive. He signaled a steady as she goes course, focusing on signing large European industrial customers and improving user experience.

The presentation was thorough, pre-empting many questions. They included defensive commentary on AI risk but it largely made sense. While churn rose slightly to 6%, provided data showed this was primarily due to business closures rather than losses to competitors. Good to see ISO 27001 cyber certification is finally complete.

Their pricing scales with complexity. Management emphasized that their products are bulletproof for regulatory purposes and less susceptible to AI disruption. Ben highlighted a new small market entrant that coded its own proprietary secret sauce for pricing but still relied on the company for the complex plumbing. As these customers scale and the complexity grows, the company’s revenue should grow with it.

Management remains high-quality, transparent, and trustworthy with capital.

There was more talk than usual regarding acquisitions, a European one seems likely. Given the high level of interest on the call, a capital raise likely wouldn't require a significant discount. Dividends are also expected to continue. Both Claude Walker, who I have to thank for putting it on my radar ~5 years ago, and Matt Joass questioned them on potential M&A.

It is difficult to maintain my usual pessimism here. Though expensive at 50-60x forward earnings, the company is in a strong sector with proven products with a long growth runway in Europe and competent leadership. It's my largest position. 

Overall great results. Again. Revenue growing in both Europe (20%) and Australia (13%). Operating leverage is kicking in with profit and cash up. To note that part of increase in Europe revenue due to foreign exchange tailwind so removing that, it would probably be closer to 10-15% revenue growth than 20%.

Why are they paying a dividend (7.5 cps)? Answered in call, they are following policy of 40% of net profit and also don't want to build a war chest. I'm comfortable with their level of debt and makes sense not to hold too much cash. 

One negative is that Cybersecurity certification is still not yet complete (they had a breach a few years back).

What's not to love about this business, 90% re-occurring revenue, high margin and >10% top line growth in a great sector. Importantly, they are still investing for growth in both people and technology. 

So, a boring report, no need to dig deeper here imo - continuing to deliver.

Valuation wise, ~8 x ARR, and PE of ~80 so not cheap, but now with the low debt it's in-arguably a quality business.

Things to watch:

•  Acquisitions - they said they are open to acquisition in US and likely to be similarly funded as previously (debt/placement). A bad acquisition has ended many a great business.
•   CEO transition (Shaun after 15 years retiring December 2025)