Lime Technologies AB (LIME.ST) Sophon Profile
A Nordic CRM SaaS provider with history as a ROIC compounder
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Sophon Score: 75/100 (see evaluation rubric at end of note)
We picked up this company through our European micro-cap software screener focused on high-ROIC names. It’s a quality business, though the absence of clear near-term catalysts limits conviction around why the valuation can expand off current results.
Strategically, the industry is moving toward verticalization, which plays directly to their model. Management has executed well historically and appears disciplined in scaling through new verticals and international expansion. If they continue compounding revenue and EBITDA, the stock should work over time. The risk is that today’s valuation, while not unreasonable, could compress if growth slows or sentiment shifts.
Lime Technologies aka "The Customer Journey Company" is a comprehensive SaaS provider specializing in customer care solutions.
Founded in 1990, the company has a long history of profitable growth, averaging ~19% annual growth and a ~25% EBITA margin since 2000. Lime offers an industry-tailored platform supporting the entire customer journey. They over 7,500 customers and 1,000,000 users across Europe.
The company has a rock solid financial profile. In Q1 2025, ARR grew 14%, overall sales climbed 11%, and EPS jumped ~20%. In Q2, ARR increased 13% and overall sales rose 5%, maintaining a ~25% EBITA margin. ROIC trends in the high-teens/20+%. Historical margin expansion serves as proof there is operating leverage in the model:
Lime isn’t trying to win by being a broad, one-size-fits-all CRM like Salesforce or HubSpot. Instead, they pick a few industries (utilities, real estate, wholesale, consulting firms, membership organizations) and build software that fits the workflows and quirks of those businesses. To speed this up, Lime buys smaller companies already serving those niches (like Sportadmin, which makes software for sports clubs and associations). By combining those acquisitions with their own platform, Lime can go deeper into each vertical, making the product stickier and harder for competitors to displace.
Lime has a strong inorganic growth strategy. Recent key acquisitions include:
◦ Sportadmin (January 2024): A market-leading SaaS company for sports clubs, adding the membership vertical as Lime's fifth focus area.
◦ Plan Plan (December 2024): A Dutch company specializing in swimming school software, further internationalizing Lime Sportadmin.
Lime operates in six European markets with 12 offices. Headquarters are in Lund, Sweden, with additional offices in Stockholm, Gothenburg, Malmö, Gävle (Sweden), Oslo (Norway), Copenhagen (Denmark), Helsinki (Finland), Utrecht, Assen (Netherlands), Cologne (Germany), and an engineering hub in Krakow (Poland). Lime’s geographic centralization is a strategic advantage. They provide software highly adapted to their niche customer base. An example of this is their “Lime Go” offering - a plug-and-play CRM solution specifically for growing B2B sales teams in the Nordics. It operates as an independent business unit within the Lime Group to adapt to local market demands
Other facts:
Low Customer Concentration: The ten largest customers account for less than 7% of net sales, indicating a diversified and resilient revenue base.
Scalable and Profitable: The business model generates strong cash flow through subscription agreements and expert services.
Growth Strategy: Lime aims for annual net sales growth above 18% and prioritizes organic growth
Lime Technologies Sophon Score
1. Market Opportunity (8/10)
Lime operates in a fragmented European SaaS CRM/customer journey market, targeting industry-specific niches (utilities, real estate, sports clubs, membership organizations). Verticalization and international expansion create a sizable addressable market with opportunities for deep penetration.
2. Competitive Advantage (6.5/10)
Lime’s moat comes from highly tailored workflows for specific industries, making it difficult for generic CRMs like Salesforce or HubSpot to displace them. Acquisitions (Sportadmin, Plan Plan) strengthen vertical specialization and network effects. Stickiness is high due to integration depth.
3. Margins & Leverage (8/10)
Historical EBITA margin ~25% and strong ROIC (~high-teens/20+%) indicate scalable operations and operating leverage. Margins appear sustainable and could expand with further scale.
4. Reinvestment / Growth (8/10)
Revenue growth is healthy (ARR +13–14%, total sales +5–11%) with organic and inorganic levers. Management targets annual net sales growth above 18%, showing room for reinvestment into new verticals, product development, and international expansion.
5. Business Model Quality (8/10)
Subscription-based SaaS with professional services overlay creates recurring, predictable revenue. Low capital intensity and high scalability make the model high-quality.
6. Revenue Quality (8/10)
Revenue is diversified across >7,500 customers; top 10 customers <7% of sales. Mix of subscription, implementation, and professional services supports resilience. Churn risk is mitigated by product stickiness and vertical specialization.
7. Pricing & Unit Economics (7/10)
Pricing reflects value delivered in specific verticals; acquisitions and deep integration expand lifetime value. Unit economics appear attractive, and scalability is proven in multiple markets.
8. Competitive Dynamics (6.4/10)
Fragmented market favors Lime’s specialization. While global CRM giants exist, Lime’s vertical-specific strategy reduces head-to-head competition. Market may consolidate, creating opportunity for Lime to acquire niche players.
9. Management (7/10)
History of disciplined execution, successful acquisitions, and international expansion. Track record in sustaining high margins and growth demonstrates capable leadership. Management’s strategy aligns with compounding returns over time.
10. Financial Health (8/10)
Strong cash flow generation, low customer concentration, and profitable operations create a resilient balance sheet. No material leverage concerns mentioned; SaaS subscription base supports predictable cash flows.
Total Sophon Score: 75 / 100
Interpretation
Lime Technologies is a high-quality, vertically specialized SaaS business with a diversified European customer base, strong margins, and consistent organic and inorganic growth. The company benefits from stickiness, predictable recurring revenue, and a disciplined management team executing well on international expansion and vertical specialization.
Near-term catalysts may be limited, but the business is well-positioned to compound over time, making it attractive from a long-term investing perspective.