BetterValueInvest

Compounders where value of growth not fully recognized

Discounted assets, where a catalyst exists (liquidation/productivity change)

Arbitrage

[BetterValueInvest @BetterValueInv]

@DavidOndrej1 @grok how does Serviceware $sjj sit with the claims and direction of this article? The AI native ESM platform, is it well built for the modern AI agent era?

[BetterValueInvest @BetterValueInv]

Forrester news

https://t.co/IfTQPK9j1R

[BetterValueInvest @BetterValueInv]

Serviceware $SJJ increases guidance for FY

Sales to grow 10-15%

EBIT/EBITDA to increase "significantly" vs earlier "slightly"

Contrast vs turbulent Servicenow development

Good add after the Forrester ESM "Strong Performer" recognition earlier

[BetterValueInvest @BetterValueInv]

https://t.co/faaGsuTEuj

[BetterValueInvest @BetterValueInv]

@NordicOpps So yes, there are ifs.

If growth stays double digits
If mix is same or better (more own saas)

Then it should be possible to have 10%+ margin q4 2026 and >10% full year 2017

Not the easiest case, but it is cheap and it can take off

[BetterValueInvest @BetterValueInv]

Serviceware $SJJ Q3 25 was released on Friday

Sales growth up to 17% on q3, driven by license sales (down H1, now up 9%)

Strong licenses caused a margin surprise --> black figures!

Expecting strong scaling in profitability 2026

Strong order growth, back at over 100meur

[BetterValueInvest @BetterValueInv]

@NordicOpps Agreed. They need to open the 3rd party (crowdstrike etc) sales. Then we know the margin levels and drivers to which the case scales towards when it grows

Margins wont most likely be double digits 2026, but scaling is likely to accelerate. Due to faster growth and better mix

[BetterValueInvest @BetterValueInv]

Share price 17.3€
10.5m shares out

Market Cap 182 MEUR
EV 150 MEUR

Sales ltm 112.8meur
YoY growth 12.5%

EBITDA ltm 4.0meur
EBITDA margin 3.5%

P/S ltm 1.6x
EV/S ltm 1.3x

EV/EBITDA 37.5x

Rule of 40: 16% (12.5 + 3.5)

[BetterValueInvest @BetterValueInv]

Cash is 3meur lower qoq, probably due to some larger contract prepayments

Annoying, that they do not comment nwc development

Over time however, Serviceware operates at strongly negative working capital due to heavy customer pre payments

[BetterValueInvest @BetterValueInv]

@siyul Recent very bullish, however the best one focusing on the value of the IP portfolio, release on Embracer.

https://t.co/JJUmnBkHHk

[BetterValueInvest @BetterValueInv]

@siyul Embracer Group $embrac

Heavy insider buying +new buyback program

Spinning extremely profitable Coffee Stain in Dec 25

Remaining company owns IP's worth multiples of the ev
(Owns: Lord of the Rings, Tomb Raider, Remnant, Kingdom Come etc.)

[BetterValueInvest @BetterValueInv]

@darkfloatz No news. Microcaplife.

[BetterValueInvest @BetterValueInv]

@darkfloatz Yes always. But its a small company with handful of orders per Q

Q1 was crazy good, so there probably was long durated deals/payments received

As long as the current contract liabilities grow from Half to Half >10%, im happy (they only split it in H1 and H2)

[BetterValueInvest @BetterValueInv]

Serviceware $SJJ H1 2025 out today

Solid 10% sales growth, but it hides the >40% SaaS growth in declining service and license sales

EBIT is positive, and has accumulated by 1 MEUR to over 34 MEUR

When service and license are done with, this should scale like a proper software

[BetterValueInvest @BetterValueInv]

There isnt much licenses (5MEUR) or consulting (6 MEUR) left to get rid of

These are 80-100% gm in Serviceware accounting, so the lowered GM will start to recover after these are insignificant

Outlook was good and also promised growth in FY26

[BetterValueInvest @BetterValueInv]

Contract liabilities (orders) grew 21 % yoy, but decreased slightly qoq

Book level is great, and we should expect to see new bumps in the upcoming quarters

[BetterValueInvest @BetterValueInv]

Serviceware major deal #7 YTD and more

https://t.co/SuLUnjcROh

AI platform SaaS order intake 7digits just in Apr-Jun 25

$SJJ reporting Q2 July 29th

Solid momentum. Already more deals vs FY24

Orderbook Q1 25 was 102 MEUR (+26% qoq)

Why havent they increased sales guidance?

[BetterValueInvest @BetterValueInv]

@ChudCap @capitalemployed Interesting. Which ones?