As you're probably aware, every bit of incremental capital generates a higher return than the previous (to a point). This is simply operational leverage at play - which I'm sure plays a part.
Efficiency is also at the forefront of their mind. They released metrics during the acquisition around revenue per employee (I think it was 4m per employee as the target) and employee costs as a percentage of revenue. I don't believe they've hit them, but I'd have to dig them up to be sure.
Also, I've signed up as a 'reseller' to DDR. Their UI is basic, but they have XML feeds that allow you to automate ordering processes very easily. They also deliver very quickly. I've tried a couple others, and DDR are probably best in class there.
There is the move to cloud too. They were quick in adopting Azure, and had no hesitations building out the right offering with minimal cost. Their cloud business is now growing steadily.
And finally, the rem structure, of which you're aware.
That combination of factors makes for a very strong business.
DDR Price at posting:
$3.40 Sentiment: Hold Disclosure: Held
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