Heavy Moat Investments

Heavy Moat Investments

Share this post

Heavy Moat Investments
Heavy Moat Investments
When Every Byte Counts (15% IRR potential SaaS business)

When Every Byte Counts (15% IRR potential SaaS business)

A fast-growing mission-critical SaaS business with high retention and upsell

Heavy Moat Investments's avatar
Heavy Moat Investments
May 15, 2025
∙ Paid
3

Share this post

Heavy Moat Investments
Heavy Moat Investments
When Every Byte Counts (15% IRR potential SaaS business)
3
Share

Today, we’re looking at a mission-critical SaaS company in a high-stakes industry (no, I don’t mean gambling with that). In an age where data is both a weapon and a witness, few companies have positioned themselves so precisely at the intersection of technology, intelligence and accountability. This firm operates behind the scenes, quietly powering high-stakes decisions across the globe. It offers indispensable tools to institutions in the private and public sectors that demand speed, precision and trust. With a business model rooted in recurring value and an increasingly hard-to-replace platform, it's no surprise that this company is becoming a critical, if not always visible, layer of modern infrastructure.

A fast and attractive business model

I already talked about the lucrative features of highly recurring revenue models, especially SaaS, in other pitches like this one. The business has very attractive attributes:

  • 25% AAR growth

  • 23% revenue growth

  • 85% gross and 25% AEBITDA margin

  • Overall market leader in its segment

  • Vertical integration through the customer workflow

  • Used by 72/100 Fortune 100 and has a large public sector penetration

  • Huge utilization/up-/cross-selling opportunity within the existing customer base

  • 92% gross retention rate

  • Rule of 50 (measured with ARR growth + AEBITDA margin)

  • Diversified global revenue mix

What’s next?

The full premium pitch covers the following:

  • How the company makes money

  • What makes it grow so quickly?

  • How can they deliver a XX%+ IRR from here?

Through the month of May, I’m offering a 7-day free trial to convince you of the quality of my premium service. Check it out; no strings are attached if you cancel before the end of the 7 days.

Get 7 day free trial

🔥 I recently made my deep dive into Ashtead Group free, so you can see exactly what to expect: Business model deep dive - Fundamentals and Valuation deep dive

As a premium subscriber, you’ll get:

  • ✔ Detailed Research on high-quality global compounders and European champions, with deep fundamental & valuation analysis.

  • ✔ Actionable Investment Pitches – Ideas with high upside potential and limited downside.

  • ✔ Earnings Breakdowns on key reports and market reactions.

  • ✔ Real-Time Trade Alerts on all my portfolio moves, plus access to the premium chat.

  • ✔ Exclusive Investing Tools, including my Inverse DCF template and more.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Heavy Moat Investments
Publisher Terms
Substack
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share