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Focus in Vertical Software
- Focus is key for vertical software companies.
- It allows them to specialize and serve a niche market effectively.
Profitability and Growth
- Vertical software companies often have higher profit margins due to lower sales and marketing expenses.
- They achieve similar growth rates as horizontal companies, despite smaller market sizes.
Undervaluation of Vertical Software
- Public markets currently undervalue vertical software companies compared to horizontal ones.
- This presents an investment opportunity, as vertical companies offer strong fundamentals.