I'd be very weary about assuming R&D spend shrinks - software companies absolutely have to continuously spend on their product to keep it leading edge, they're a bit like pharma companies in that regard. GBT is a good example of what happens when a software business underspends on R&D - P&L is artificially boosted for a few years, then the business craters when the product becomes inferior to other competing offerings.
With most acquisition earn-outs paid, no debt, SAAS transition well underway and the cash balance building, capital allocation here will be just as important as the growth in software sales. Let's hope they don't blow it on something dumb.
The opportunity here in front of the management team is significant, and they've done years of toil to get here. Should be a good few years as long as they don't do something dumb.
RUL Price at posting:
78.5¢ Sentiment: Buy Disclosure: Held
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