Sectors: Technology
This HR & asset management SaaS company is an active growth story that continues to deliver with over 90% of its revenue reoccurring, the only issue is around extrapolating growth moving forward but its targeted Annual Reoccurring Revenue (ARR) in excess of $500mn by FY26 looks achievable making its current 46x valuation high, but not unjustified.
• We like TNE but the risk/reward isn’t exciting unless we see a repeat of its $3 correction witnessed in H2 of last year.
While technically a technology company, Silex is shaping up to be an important player in the uranium and silicon space, developing laser enrichment technology for both chemical elements. They are currently aiming to build a commercial-scale pilot plant in a joint venture with uranium giant Cameco that, if successful, would allow the western world to become self-sufficient.
A positive announcement by the cloud-based accounting platform yesterday with a definite pivot to a more balanced approach around growth. XRO previously ran operating expenses at 84% of revenue, with a lot of this going into growth initiatives. Yesterday, the new CEO Sukhinder Singh Cassidy, announced plans to pare this back to 75% with a 15% reduction in the workforce the major saving.
Online recruitment business SEK delivered a solid 1H23 result last month while they tightened guidance towards the lower end for the full year. Revenue came in at $627mn a beat to the $617mn consensus but importantly in today’s environment no big miss. A solid result with no surprises which in today’s tough operating environment is a large tick for the management.
REA also traded ex-dividend 75c fully franked yesterday but the stock only edged down 9c. This Real Estate listings company delivered a decent result in a very tough environment last month but they guided towards ongoing headwinds until next year.
Printed circuit board design software provider ALU traded ex-dividend 25c part franked yesterday yet it still managed to rally 47c outperforming the overall market in the process. We remain bullish even after the company’s average earnings report last month.
The audio-visual chip maker rallied more than 10% yesterday on strong AGM comments – and we think this is just the start.
Online recruitment platform SEK continues to follow the MM playbook although it’s early days in terms of a decent recovery following its almost 50% decline in less than 12 months.
Yesterday saw MP1 open unchanged before driving down another -13%, at this stage we’re comfortable having exited our position as 2 scenarios loom on the horizon and until there’s a degree of clarity it’s hard to see any meaningful upside for this volatile tech company:
Back in July we saw Microsoft (MSFT US) miss earnings estimates although the stock rallied on positive guidance, revenue and income fell short from Azure and other cloud services, we will be watching future numbers very carefully for signs that these areas are losing momentum. Importantly this was the 1st time in 6-years that MSFT missed earnings – we said…
