Thanks for your explanation. I have subscribed a "Market Analysis Newsletter" which covers AUS & NZ share market. As per the newsletter, IRI developed products specifically for Microsoft Teams and Zoom. Let me quote from March 2021 newsletter: "Integrated Research has many new products: Payment Analytics (launched June 2020), Experience Management for Microsoft Teams and Zoom (both launched in the December 2020 quarter) and for Webex Meetings (March 2021), with Experience Management for MS Teams Direct Routing expected in the December 2021 quarter. These have a large “total addressable markets” (TAM) so could be a major source of new revenue for Integrated Research in the future."
If the newsletter saying is correct, then Microsoft Teams and Zoom are using IRI's products thus paying fees to IRI. Therefore in my opinion, what IRI needs to do is enhancing their products for further revenue improvement.
In regards to infrastructure, you are right IRI receive up front fees. But if they can keep getting new customers and the retained customer keep renewing(say this year 10 existing customers renew for next 3-years, next year another 10 existing customers renew and get 5 new customers), the revenue from this sector can be increased year-by-year.
IRI Price at posting:
58.0¢ Sentiment: None Disclosure: Held
(20min delay)