ReadyTech
This software company serves educations institutions, Human Resources departments and local and state governments. The company benefits from the increased need for SaaS-based solutions in the modern economy as well as the ease with which successful SaaS applications can scale. In FY21 ReadyTech enjoyed $18.9m in EBITDA from $50m in revenue, with the vast majority of its revenue being subscription-based. The company is targeting a strong pipeline of new customer wins and regularly acquires SaaS-based businesses, which it sees as complementary. The company is carrying only a modest amount of debt.
On consensus numbers, Readytech is trading at 14.8x FY22 EBITDA even with EBITDA expected to grow in excess of 40% this year.