Info-Tech Systems Ltd.’s strong performance stands out in a period when broader Software-as-a-Service (SaaS) sentiment has turned cautious. While many global SaaS firms face slowing growth, margin compression, and valuation resets, Info-Tech has delivered a combination of high growth, strong profitability, and resilient recurring revenues – suggesting that not all SaaS models are equally exposed to the current downturn.
At its core, Info-Tech’s business model is tightly focused on small and medium enterprises (SMEs), a segment that remains structurally underpenetrated in digital software adoption across Southeast Asia and India. Unlike enterprise-focused SaaS players that are experiencing budget tightening and elongated sales cycles, Info-Tech benefits from mission-critical use cases such as payroll, compliance, accounting, and HR operations, that SMEs cannot easily defer. This gives the company a high degree of revenue defensiveness, reflected in its 90% gross customer retention and subscription-heavy revenue base built on annual prepaid contracts. It also ensures strong revenue visibility and cash flow stability, even amid macro uncertainty.
Resilient Financials
The company’s FY2025 financials reinforce this resilience. Revenue grew 29% year-on-year to S$56.5 million, while adjusted net profit rose 46% to S$18.0 million. More notably, Info-Tech operates at an exceptionally high level of profitability for a SaaS company, with gross margins of 85.2%, EBITDA margins of 37.5%, and net margins of 26.6%. Furthermore, Info-Tech’s disciplined cost structure, enabled by its offshore support hub model in India and Malaysia, allows it to scale efficiently while maintaining strong earnings.
Localisation builds stickiness
One key driver of outperformance is its localized and price-sensitive go-to-market strategy. Rather than adopting a one-size-fits-all pricing model, Info-Tech tailors its offerings to different SME segments and geographies. Products like “DigiSME” target micro-enterprises with simplified, low-cost solutions. This localization creates a competitive moat against both global SaaS incumbents and regional peers, as it aligns closely with the purchasing power and operational needs of SMEs.
Ever-expanding product suite
Equally important is the company’s expanding product ecosystem, which increases customer stickiness and lifetime value. Starting from its core HRMS platform, Info-Tech has successfully broadened into adjacent verticals including accounting software, CRM (launched in 2026), training services through Info-Tech Academy, and even recruitment via Jobs Lah. This integrated ecosystem allows SMEs to manage multiple business functions within a single platform, raising switching costs and enabling cross-selling opportunities. The addition of hardware solutions and payroll outsourcing further deepens customer relationships, transforming Info-Tech from a software vendor into a holistic business solutions provider.
Strong industry demand
Industry tailwinds also play a significant role. The SME digitalisation wave across Singapore, Malaysia, Hong Kong, and India remains in its early stages, supported by government initiatives such as Singapore’s Productivity Solutions Grant and India’s “Digital India” program. These policies effectively subsidize adoption and accelerate the shift from manual or legacy systems to cloud-based platforms. With a combined market size of US$3.3 billion in 2024 and a total addressable market of US$17.3 billion, Info-Tech is operating in a large and growing space with ample room for expansion, particularly in underpenetrated markets like India.
Market fit
| Company | FY2024 Revenue & Growth | FY2024 Profitability | FY2025 Revenue & Growth | FY2025 Profitability |
| ADP | $19.20B +6.6% YoY | 19.5% Net Margin | $20.56B +7.1% YoY | 19.8% Net Margin |
| Paycom | $1.88B +11.2% YoY | 26.7% Net Margin | $2,05B +9.0% YoY | 22.1% Net Margin |
| SAP | €34.18B +9.5% YoY | 9.2% Net Margin | €36.80B +7.7% YoY | 19.9% Net Margin |
| Info-Tech Systems | S$43.80M +18.0% YoY | 28.2% Net Margin | S$56.50M +29.0% YoY | 26.6% Net Margin |
| Workday | $7.52B +21.1% YoY | 19.0% Net Margin | $8.45B +12.4% | 6.2% Net Margin |
Finally, Info-Tech’s exposure to competition appears manageable despite a fragmented landscape. While it faces regional players such as BIPO and JustLogin, as well as global firms like Workday and ADP, its SME specialization, localized execution, and cost advantage differentiate it meaningfully. Large enterprise vendors often struggle to profitably serve smaller clients, while newer entrants lack the integrated ecosystem that Info-Tech has built. Its high growth and net profitability also suggest its irreplaceability in local markets. Furthermore, its customer retention rate is similar to these competitors: ADP (92.1%), Paycom (91%), Workday (98%), Info-Tech (90%), suggesting Info-Tech have high pricing power.
| Entity Name | Price/ EPS (x) | Price/ Forward EPS (x) | PEG Ratio (x) | TEV/ EBITDA (x) | TEV/ EBIT (x) |
|---|---|---|---|---|---|
| Automatic Data Processing, Inc. (NASDAQGS:ADP) | 20.57 | 18.1 | NA | 13.77 | 15.51 |
| Paycom Software, Inc. (NYSE:PAYC) | 16.49 | 11.5 | 0.9 | 10.32 | 12.14 |
| SAP SE (XTRA:SAP) | 25.12 | 18.3 | 1.1 | 15.26 | 16.74 |
| Workday, Inc. (NASDAQGS:WDAY) | 49.94 | 12.3 | 0.6 | 19.35 | 29.95 |
| Info-Tech Systems Ltd. (SGX:ITS) | 16.38 | 10.9 | 0.9 | 8.46 | 9.35 |
Info-Tech is trading at a lower valuation than its global peers across most metrics, which has likely contributed to its relative outperformance while competitors have declined between 12% and 40% YTD.
Final Thoughts
In sum, Info-Tech’s strong performance amid SaaS pessimism reflects a fundamentally different positioning: it operates in a less saturated, high-necessity segment, combines growth with profitability, and benefits from structural digitalisation tailwinds in emerging Asia. Rather than being a typical high-burn SaaS company vulnerable to macro cycles, Info-Tech resembles a disciplined, cash-generative compounder. Based on the above comparison, we believe the recent rally is justified and there is still room for further re-rating. We’ve written about this business since its IPO and it provides a much clearer lay out of its financials across segments and regions!
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