Well- the customers don't have to install software- they just...

Well- the customers don't have to install software- they just access the platform and use it. It's neutral. Plus ACX helps adapt it for the parameters of the specific project. These are not in house systems. It's a cloud based platform.

The reports I have read from ACX customers (and I have read many, which I am happy to share), frequently speak to the ease and speed of on-boarding.

Regarding the revenue increases- doubling revenue every 2 years (see below) is no mean feat for a business, so credit where credit is due.

Also, scoring huge projects like the $18.2bn HK International airport expansion, the $US13.4bn construction of New Mexico City International airport, and the 30 year M25 maintenance and enhancement program, etc, etc, not only generate revenue over long periods but also raise the profile of the co and the technology simultaneously.

Honestly, the TAM is vast, the penetration low, and marketing dollars spent now are worth every cent.




Incentives

Tying incentives to EBITDA also makes sense, as EBITDA growth in ANZ (about 38% now) is a good indication of market penetration (eg- higher in the more mature markets and lower in those relatively newer ones requiring more leg work and strategy) . However, according to Adam Lewis, these are no longer the sole indicators, and non-financial metrics are now also concluded:

"The Company’s short-term incentive (STI) and long-term incentive (LTI) plans were simplified and revised.

The STI Plan performance metrics were expanded to incorporate key non-financial measures, and for regional roles, adjustments were made to appropriately reflect associated regional performance measures.

Our LTI scheme was also revised. In line with other businesses of a similar size in the Australian market and in response to shareholder concerns regarding dilution, we have transitioned from options to performance rights in FY18.

There are two components to eligibility, both equally weighted at 50%. The first is Relative Total Shareholder Return (RTSR) and the second is Revenue Compound Annual Growth Rate (CAGR). A more detailed explanation of these changes is included in the explanatory memorandum to the Notice of Meeting."

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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.ACX