Key Factor in Analyzing ABC Technologies

ABC Technologies is a mid-sized firm operating in the software development sector, primarily focusing on cloud-based solutions for small to medium-sized enterprises (SMEs). Recently, the company reported a significant increase in revenue, attributed to a surge in demand for remote-working software solutions following market changes. However, its operating margin has shown signs of pressure due to rising costs of investment in cybersecurity measures and talent acquisition.

As an analyst evaluating ABC Technologies for potential investment, you want to assess the sustainability of its growth and profitability features concerning its competition. Which of the following factors would be the most crucial for your analysis of the company’s future performance?