Hundy soon?, page-51

The results today were really good. There was a bump in revenue that almost passed through completely to EBITDA, and a significant portion went to profit. They have reached that point in a SAAS business where any additional revenue mostly passes directly through to profit. The great news is if the product development costs are at the optimum level they are unlikely to grow, and although sales and marketing costs may grow most revenue will pass directly to profit. The even better news is that their revenue at the end of each year is the starting point for the following year due to the sticky nature of their contracts. I see some really big jumps in following years for profits. Their profits may not be huge, but on this trajectory they will grow significantly.