Sectors: Technology
ALU -5.92%: A weak session today for Altium despite upgrading their revenue guidance for FY22 with the stock down ~10% at the worst before recovering to close down a more modest 6%. The issue came around margins which has been a common theme for tech stocks this reporting period. 1H22 revenue came in at $102.2m inline with expectations while FY22…
EML -3.97%: a choppy ride for the payment solutions business today on the back of a mixed 1st half result. Revenue of $113m was a slight miss, EBITDA fell 4% to $26.9m but they maintained full year guidance of $58-65m in EBITDA which will require a big second half to reach. The positive news is that the sales pipeline is growing, up 30% in the half to $13.6b and they…
Yesterday we had a call with Audinate’s CEO & CFO – some quick thoughts below:
ALU develops electronic design automation (EDA) software and as such has been in the focus of the markets rerating of the growth, and especially tech names i.e. its 26% correction is more than double that of the ASX200. This is a business we like but as so often is the case with growth names what investors are prepared to pay for potential future earnings is key…
SEK +6.08%: An impressive 1H22 result today from the online recruitment platform with revenue of $517m, 3% ahead of consensus while EBITDA was a ~10% beat highlighting the sort of operational leveraged in the business. They also upgraded guidance for revenue to be $1.05bn – $1.10bn for FY22 which was around ~5% better than prior guidance + market expectations.
AD8 -3.75%: first half numbers for the audio visual technology company were out this morning. The top line was in line with expectations, printing revenue of $US14.8m in the half, up 33%. EBITDA ($2m) and profit (-$2.1m) were slight misses to expectations however these are less of a focus. The hardware side of the business maintained its dominance in the space…
PYPL is arguably our most frustrating position and it happens to reside in our International Portfolio, we have been discussing selling it for weeks and being too pedantic has cost us dearly i.e. the old market adage your first loss is your best loss comes to mind. This fintech was a big winner through COVID but its now facing some very real headwinds – the stock fell almost…
Online accountancy business XRO maybe a quality business but its still corrected well over 30% as its high valuation comes under scrutiny, as we’ve seen in the US it must continue to deliver. MM are already holding a 5% exposure which is plenty in todays market but if we held a smaller position we would be considering increasing our exposure around $100.
Electronic software developer ALU has failed to hold onto early 2022 gains which is understandable in todays environment especially with its high valuation, unfortunately technically its starting to look like a stock which has experienced a failed pop to new highs. We like the business but if / when the tech sector does find some love we might consider taking our money around the $40 area.
AI business APX has been a local casualty of a tech stock failing to deliver, we took an aggressive position in mid-November and even that’s now underwater as its peers crushes sentiment across the growth space. However we do believe the next 20% is up for APX and its tempting to average into weakness, not exactly following our “buy quality” mantra…
