Objective Starts Capitalizing Software Development but Underlying Business Remains the Same

We expect Objective’s strategy to focus on investing heavily to continue expanding its product portfolio, both organically and inorganically. Over the past decade, Objective invested heavily to adapt its core enterprise content management software suite to evolving customer needs, especially around the transition to the cloud and remote working. We view these trends as maturing and we don’t see other trends requiring a similar magnitude of investment on the horizon. As such, we believe Objective will increasingly have capacity to deploy capital into more industry-specific applications of ECM, such as for assessing building development applications and compiling new regulations. We view the expansion into planning and building most favorably, with Objective’s products already commanding dominant market shares in Australia and New Zealand, both of which have outsize construction sectors.