Sectors: Technology
SEK –5.13%: Job ads remain at all-time highs and that set a good backdrop for SEK’s FY22 results today, with particular strength obvious in the 2H across ANZ & Asia. FY22 underlying net profit after tax (NPAT) came in a $259.6m, ahead of the $246.5m expected along with a dividend of 21cps. That was a rise of 84% on FY21, however guidance for FY23 missed the mark, SEK saying that underlying NPAT would likely be $250-$270m versus current consensus of $286.4m, about a 10% miss.
The BNPL space ran hot for a couple of weeks in late July as short covering appeared to throttle many “weak” traders however Zip has now seen its short position actually grow to over 9% of issued capital. Some of these shorts do relate to funding deals we believe but it still feels like someone’s going to get hurt here – but we’re happy to remain observers – the stock has already fallen -35% from last month’s high.
On-line recruitment giant SEK is leveraged to the economic backdrop as job advertisements slow when inflation & interest rates increase which by definition hits their revenue. However, there are other factors at play with SEK’s share price as we wave goodbye to QE and learn to live with QT i.e. high valuation stocks were aggressively rerated on the downside…
We’re all aware that the Australian property market has softened over the last 9-months but property remains most people’s favourite asset class and it wouldn’t take a great deal to stabilise prices and see activity pick back up, increasing listing volumes and revenue for REA.
Yesterday’s report was largely pre-released – Revenue and operating performance were announced at the quarterly update in July while EBITDA was a slight miss at -$10.2m.
Overnight, The Trade Desk (TTD US) released a Q2 trading update after market that was stronger than expected on most metrics, while there was also some concern in the market leading into this update about the health of the broader online advertising space.
REA +6.69%: the property classifieds business announced their FY22 results today largely in line with expectations, with poor international performance offset by more bullish commentary. Revenue was $1.16b for the year, while Core EBITDA at $673.5m was a ~2% miss to consensus at $685m. Operating expenditure was up 11%, driven by wage inflation, new…
Snowflake (SNOW US) is a US-listed data business MM recently added to our International Portfolio, for those not familiar with the company it came to market when technology was running extremely hot in late 2019. The IPO had the who’s who of investors and it did spectacularly well, doubling in short succession but since then it has fallen away…
Network connectivity business MP1 rallied strongly in late July following their ‘less bad’ 4th quarter update which displayed a +10% lift in revenue plus the company posted a positive EBITDA for the first time as monthly reoccurring revenue (MRR) grew by $1.2mn – overall far better than downbeat expectations although we shouldn’t lose sight of the stocks painful 80% fall from its 2021 high.
PayPal (PYPL US) rallied +9% overnight after delivering a good result and importantly, guidance for the year ahead, plus they announced $US900mn in savings from cost-cutting, a huge $US15bn share buy-back and news that activist investor Elliot had taken a $2bn stake in the company with plans afoot to turn around the payments provider. The valuations…
