I'm obviously positive on the business, too - I watched this business for a long time as their software strategy slowly unfolded while the mining bust crushed their traditional advisory and testing businesses. It's a classic "overnight success five years in the making".
That said, couple points for balance:
- R&D might temporarily drop as they finish big development sprints, but it shouldn't longer term. It needs to be thought of as a software business's maintenance capex - money they have to spend to keep their suite better than competitors - so long term I'd expect it to be something like 15% revenue. - Your point on 3 year average contract length is important, but remember their customers operate in a highly cyclical industry so what you'd expect in a bad mining downturn is customers begging for (and getting) temporarily lower subscription prices. - You need to factor in dilution from their outstanding options in calculating EPS, EV etc. - they're all well in the money now.
RUL Price at posting:
$1.21 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)