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Serviceware $SJJ (Germany) is an undiscovered small-cap software company specialized in Enterprise Service Management (main competitor: ServiceNow, $NOW) and IT Financial Management (main competitor: Apptio, acquired by IBM at 11x Sales in 2023). For several years, Serviceware has been integrating AI solutions into its software, which is now driving strong traction in acquiring new clients. SaaS/Service line growth in the last quarter was +30.5% y/y. Currently this line of business is generating €20.8m out of 27.7m revenues per quarter. So from this quarterly math is easy to calculate Serviceware revenues will exceed €115m this FY with SaaS having more than 70% share. Not bad for a €170m marketcap now. So why is this a great idea right now? 1. The company reached EBITDA breakeven in the previous fiscal year, and this year it is expected to achieve positive EBIT and strong positive cash flows (working capital is negative due to customers paying before revenue is recognized). With a current net cash position of over €31.6 million, Serviceware is in a position to initiate dividends or share buybacks – already discussed at the latest AGM!!! 2. The transition to SaaS is essentially complete. SaaS/services now represent 75% of total revenue, and license sales (~€15 million annually) appear to have stabilized. As a result, with SaaS growing now over 30% y/y and flat license revenue, overall revenue growth will accelerate from ~10–15% p.a. this year to over +20% p.a. in coming years. 3. The company has made tremendous efforts since 2019 to integrate AI into its software. As a result, thanks to AI adoption, the Serviceware momentum is accelerating rather than slowing down. One could say it's one of the few prepared European software companies that is gaining revenue from broad AI adoption rather than losing out to US megacap firms. 4. Given the company’s flat operating cost base, a large portion of nominal revenue growth should drop to the bottom line (~50–60% incremental margin). So with the additional €50m revenue in approx. 3 years in revenue operating results should exceed €30m p.a. and freecash flow will be higher. 5. New deals – Serviceware appears to be winning major SaaS contracts outside of its core German market, confirming the high quality of both its product and go-to-market execution. Just few remarkable example is winning US food company in February 2025 and Asian Oil Company from the Fortune 500 list in June 2025. 6. Very high management and founder commitment. They have never sold shares and currently own approx. 62% of the capital. And for long-term investors, the valuation is absurd – it’s nearly "free". The opportunity exists because Serviceware is under-the-radar and its shares are not very liquid. Currently trading at around 1.2x revenue, and if growth continues (according to my research it will accelerate from +15% now to +20-30% p.a. thanks to SaaS growth, with EBIT margins of 10–20%, the earnings multiple will also move into the low single digits. Moreover, since licenses and SaaS are often paid upfront, the company generates much higher free cash flow than operating profit. For example, in 2024, with €3.2m EBITDA, the company generated €10.4m in operating cash flow and €8.7m in free cash flow. Transaction multiples for relevant direct peer's range 4x to 10x revenues. On the lower bound Efecte much smaller, unprofitable and significantly slower growing entity was acquired at 4x Sales in 2024 by Martrix42 AG. Apptio (the relevant competitor for Serviceware performance offering) was acquired at 11x sales by IBM $IBM in 2023 versus Serviceware's 1.2x multiple now… Serviceware looks primed to be acquired from this standpoint as one of the few independent ESM and SaaS in Europe that stays in Founder hands and is listed accessible to smaller investors. Risks are typical for undiscovered SaaS smallcap – lower liquidity of shares and execution in hands of Founders (CEO and CFO roles).