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Lime: A story about SaaS, not consulting - SEB

While headline figures for Q3 were below our expectations, we are not worried but rather attribute the weakness to a tight labour market impacting consulting revenues in the aftermath of the pandemic. Encouragingly, SaaS sales continue to develop favourably and should correlate fairly well with Expert Services over time. Historically, buying Lime at a 3% FCF yield has been a good thing; we argue it could be time again.

While headline figures for Q3 were below our expectations, we are not worried but rather attribute the weakness to a tight labour market impacting consulting revenues in the aftermath of the pandemic. Encouragingly, SaaS sales continue to develop favourably and should correlate fairly well with Expert Services over time. Historically, buying Lime at a 3% FCF yield has been a good thing; we argue it could be time again.
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