This ASX tech company just became profitable, and its shares are rocketing 14%

Man with rocket wings which have flames coming out of them.

Man with rocket wings which have flames coming out of them.

ASX tech shares, as a whole, haven’t had the best of years so far, with many coming under pressure amid rising interest rates.

You need look no further than the 41% year-to-date loss posted by the S&P/ASX All Technology Index (ASX: XTX) to gather what we mean. In morning trade, the All Tech index is down another 0.5%.

But ASX tech share Credit Clear Ltd (ASX: CCR) is bucking the trend today.

The credit management company’s digital billing and communication platform helps organisations achieve more efficient financial outcomes via artificial intelligence applications.

And in morning trade, the ASX tech share is up 14%.

Why are investors bidding up the Credit Clear share price?

ASX investor interest looks to have been piqued by Credit Clear’s announcement that it had achieved operational profitability in May. This came after the company saw a record month with $3.03 million in revenue.

The ASX tech share also credited its ongoing investment in technology and client success resources for achieving profitability two months ahead of earlier forecasts of July. Operational profit in May came in at $23,000.

The company said that its balance sheet is strong after its $7.5 million capital raise in June. Those shares were issued at 43 cents, 7% above the current share price of 40 cents. It added that with the cost of living looking to rise far faster than wages, it’s well-positioned to deliver accelerated growth in the 2023 financial year.

Commenting on the strong performance, Andrew Smith, Credit Clear CEO, said:

In 2022 Credit Clear has positioned itself to lead the market as an end-to-end credit management company. We’ve done this by providing a ‘best-of-both’ offering that sees award-winning AI technology combined with an experience-led and customer centric service offering.

The uplift in performance produced for our clients has been quantifiably proven in recent case studies and is contributing towards greater referral volumes from existing clients, and an influx of new clients that we have signed in the past few months.

We exit the 2022 financial year as a profitable market-leading company and our intention is to reinvest profits for growth.

How has this ASX tech share been tracking?

With today’s intraday gain factored in, the Credit Clear share price is down 5% in 2022.

That compares with a year-to-date loss of 17% posted by the All Ordinaries Index (ASX: XAO).

The post This ASX tech company just became profitable, and its shares are rocketing 14% appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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