- Software as a service and the 'rule of 40'.
- Understand the impact of share-based payments.
Businesses that do a good job for their customers tick an important box in what makes a good investment for shareholders. Our companies this week both have cause for optimism in growing their revenues and profit margins, although there are some important subtleties to be aware of when evaluating both that growth potential and what at face value don’t look to be overly demanding valuations.
One is an Aim-listed software as a service (SaaS) business which facilitates major retailers' loyalty programmes. Companies are investing heavily in customer loyalty schemes as a way of gaining an edge in fiercely competitive markets. Judging by its recent business performance, solutions offered by this business are going down very well.
