2 ASX tech shares making massive moves right now on earnings updates

A young woman with glasses holds a pencil to her lips as she is surrounded by the reflection of data as though she is being photographed through a glass screen project with digital data.A young woman with glasses holds a pencil to her lips as she is surrounded by the reflection of data as though she is being photographed through a glass screen project with digital data.

Two ASX tech shares are making big moves today.

Albeit in opposite directions.

The S&P/ASX All Technology Index (ASX: XTX) is down 1.4% following sharp losses posted by tech stocks on the NASDAQ Composite Index on Friday.

But that hasn’t deterred investors from bidding up fintech stock Praemium Ltd (ASX: PPS), which was up 11% in earlier trading and remains up 7.12% at the time of writing.

Bigtincan Holdings Ltd (ASX: BTH) isn’t receiving the same love today. Shares in the company, which provides an AI-powered, online sales enablement platform, are down 3.77%, having earlier posted losses of more than 8%.

Both ASX tech shares are making these big moves after releasing their half-year results for the six months ending 31 December.

Here’s what investors are mulling over.

ASX tech share sinks as losses mount

Kicking off with the earnings results for Bigtincan Holdings, the ASX tech share reported some mixed results for H1 FY23.

On the plus side, revenue from ordinary activities increased 31% from H1 FY22 to $60.2 million.

And annual recurring revenue (ARR) of $130 million represented a record result.

This helped drive a 74% lift in adjusted earnings before income, taxes, depreciation and amortisation (EBITDA) to $2.1 million.

But investors look to be selling off the ASX tech share amid rising costs.

Operating expenses for the half year came in at $70.1 million, up 38% year on year. This saw the company book a loss after income tax of $18.2 million, compared to a loss of $10.5 million in H1 FY22.

That was reflected in a big fall in diluted earnings per share (EPS). That came in at negative 3.97 cents per share, down from negative 2.46 cents per share in the prior corresponding period.

Commenting on the results pressuring the ASX tech share today, Bigtincan CEO David Keane focused on the company’s boost in recurring revenues:

We are pleased to deliver another record ARR result in 1H FY23, with the Company continuing to deliver market leading products, win important customer deals, and progressing our commitment to materially improved adjusted EBITDA…

1H FY23 our Multi-Hub strategy continued to benefit the business with Multi-Hub ARR growing from 17% in the previous corresponding period, to 29% of total ARR at the end of 1H FY23.

The company reconfirmed its full-year guidance.

Which brings us to…

Praemium share price lifts on profit growth

The Praemium share price is charging higher post its half-year results.

The ASX tech share reported the divestment of its international operations was completed on 30 June. Its Australian segment is now the company’s sole focus.

Investor interest looks to be piqued today by a big lift in statutory net profit after tax (NPAT) to $9.1 million. Revenue of $35.4 million was up 17% year on year.

Praemium also reported record half-year EBITDA of $11.4 million, up 52% from H1 FY22.

Also during the six-month period, the company paid a 5 cents per share, fully franked special dividend on 10 August. And it kicked off a $25 million share buyback, with $6.6 million deployed as at 31 December.

Funds under management on the investment platform grew 6% from 30 June to reach $42.7 billion.

Commenting on the results boosting the ASX tech share today, CEO Anthony Wamsteker said:

The 2023 financial half-year has seen key strategic decisions pay off with increased profitability and enhanced shareholder returns. This result, derived from strong net funds flow, margin expansion and discipline on costs, has delivered a step change improvement in operating leverage.

The post 2 ASX tech shares making massive moves right now on earnings updates 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 positions in and has recommended Bigtincan and Praemium. The Motley Fool Australia has positions in and has recommended Bigtincan. The Motley Fool Australia has recommended Praemium. 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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