We believe Fineos possesses investment merits that are typically absent in profitless technology companies. The market appears to underestimate the revenue potential stemming from the adoption of cloud software by insurers, as well as the increasing loyalty of Fineos' insurer customers. Fineos is well-positioned to secure new business, bolstered by long-standing customer relationships and referrals. Although the company is not yet profitable, it reinvests to strengthen switching costs with its loyal customer base, acquire new business, and maintain its competitive edge. We anticipate share gains through increased product offerings per client, the addition of new clients, and expansions into new regions and adjacent markets. Additionally, there are opportunities for cost efficiencies arising from client transitions to the cloud, the automation of manual processes, and recruitment in emerging economies. We expect Fineos to be able to self-fund its future growth.
MarketAnalysis
