...Applied Systems Inc. experienced a strong start to the first half of 2022, including a 15% increase in its revenue relative to the same period last year. The company similarly improved its EBITDA margins and free operating cash flow (FOCF) over the same period to near the mid-40% range and $60 million, respectively. This improvement largely stemmed from an expansion in Applied's broker management system (BMS) installed base, which surpassed 200,000 global users during this period. To a lesser extent, the company's top-line revenue also benefitted from its August acquisition of Tarmika, a leading commercial lines rating solution for small business insurance carriers. We anticipate Applied Systems will maintain its current performance trajectory over the next 12- 24 months despite possible near-term recession risks. The company benefits from both its mission-critical platform and resilient end-market base. Therefore, even in the event of a downturn, we expect Applied would remain largely...
