Under the radar?, page-8

Absolutely cashflow is key. The education division is far and away the dominant player in their niche in the Australian market, and with mission critical subcription revenue, and minimal fixed costs and competition, can be relied on to spit out more than enough cash to fund R&D and sales investment across the company.
The HR market seems very different - greater TAM and greater competition as you mentioned. While I'm also generally suspicious of capitalising R & D (which my be an ongoing requirement), one could also look at upfront sales costs as more an investment than an expense for an SaaS business (just as analysts look do for the likes of Xero. And as with Xero, sticky revenue's a two-edged sword - harder to get customers to change as well as easier to keep them)
As long as HR are growing both market share and revenue per customer, and with Education funding the growth rather than shareholders, their prospects look bright.