The Capital Markets Day was a bit disappointing, as concrete details after the financial targets were scarce. The previous Capital Markets Day was very fruitful. The main message now, however, is that the company is strongly transitioning from a service house to a platform and solution/product house.
The strategy now is to accelerate growth and profitability by transitioning from a pure IT service model to a hybrid model, accelerating expansion into scalable products and platforms with our related expertise.
The revenue source has clearly shifted from the IT service model and is based on platforms, customer vertical solutions built on top of them, and further customer-specific customizations.
Netcompany’s platforms are Pulse, Amplio, and AMI, and these are combined with EASLEY AI. The company went through its various products, but unfortunately, concrete details remained scarce.
Regarding acquisitions, after the Intrasoft acquisition, the focus has changed, and the company will only acquire scalable IT solutions going forward. Payback target 5 years, max 7 years. Must be EPS-accretive within 2 years.
Profitability improvement will come in the medium term from SDC cost synergies and rising market margins.