KWS is consolidating outsourced service providers at a rapid pace. Its scale advantage and high barriers to entry provides it with an incredible moat resulting in a >1500% return over a decade.
Hi, terrific job you did with all your thesis. I've just discovered you (I started learning about investing short ago). Thanks for sharing your deep research for free.
You might want to analyze RWS Holdings. Similar business (translation, linguistic services), based in UK, also an acquirer, but more diversified areas (outside gaming), cheaper valuation (IMHO, but I am not still good at that).
I am a freelance translator and I've worked for both of them. I know the business from inside and neural machine translation is gonna be a game-changer (lower rates for us freelancers, probably higher profits for these agencies).
Great article, insightful! On the TAM would be great to know the breakdown by contient? SEA and LATAM sems to be the fastest growing regions (given the number of app downloads and active user etc) whereas KS focus is on Europe and US. Is this a future headwind for KS?