Shares of Model N, an American software company that provides revenue management solutions for the high tech and life sciences industries, are trading 40% below their peaks of 2021. Despite limited segments of business, the company posts high growth rates, and its revenues grew 22% year-over-year to $51.5 million in Q4 2021. The Net Revenue Retention Rate was up to 119%, meaning that existing clients spent 19% more than the previous year.

The company is planning to move to the subscription-based model that is favoured by Wall Street investors for its sustainability in generating incomes. Model N is extremely cheap as its market cap is below $1 billion while its annual revenues are at $214 million. Company’s EBITDA is at 14%.

The company if focused on quite narrow market segments and provides high quality services. Given its rather small size, it could be acquired by a larger market player like Salesforce that has an extensive M&A business model.