Category: Stock Market

The Costa Group Holdings Ltd (ASX: CGC) share price is tumbling lower following the release of its half year results.

At the time of writing, the horticulture company’s shares are down 4% to $3.25.

Costa share price falls after reporting modest profit growth

• Revenue flat over the prior corresponding period at $612.4 million
• Directly attributable COVID-19 costs of $2.5 million
• Earnings before interest, tax, depreciation, amortisation, and the fair value movements in biological assets (EBITDA-S) up 4.3% to $124.4 million
• Net profit after tax-S up 3% to $44.4 million
• Fully franked interim dividend of 4 cents per share
• Net debt of $208 million, representing leverage of 1.4x

What happened in FY 2021 for Costa?

For the six months ended 30 June, Costa reported a flat revenue of $612.4 million and a 3% increase in net profit after tax to $44.4 million. A key driver of this was its International business, which delivered a record result.

International revenue increased 25% over the prior corresponding period thanks to positive pricing, yield, and demand. This was supported by its premium varieties in China, which continue to attract a significant price premium. Management believes this supports the company’s continuing development of its China farming footprint across multiple locations in Yunnan Province.

The strong performance in the International business offset a mixed performance by the Domestic business. It struggled with inclement weather and weaker avocado pricing. The latter was driven by sustained higher volumes and a contraction in the foodservice sector.

What did management say?

Costa’s CEO, Sean Hallahan, was pleased with the half and particularly the performance of its International business.

He said: “Our international segment through our operations in China and Morocco continues to make an ever-increasing contribution to our overall performance and has delivered record results. This has not only occurred because of increased berry plantings but is also an endorsement of our world leading blueberry genetics, which continue to be well received by consumers across Asia and Europe and are attracting a price premium.”

“Domestic produce performance was mixed for the half, with avocado performance impacted by high volumes and resultant pricing below forecasts. Our berry category delivered a positive performance with generally favourable pricing across our four main berry varieties. Table grape and first half citrus yields from the Sunraysia (Vic) region were unfortunately impacted by a New Year’s Day hail storm. While there were relatively positive demand and pricing conditions for mushrooms our ability to fully benefit was not able to be realised due to lower production volumes.”

What’s next for Costa?

Failing to give the Costa share price a lift today was news that it is on track to achieve its guidance in FY 2021.

Mr Hallahan explained: “We have confirmed our full year forecast which is in line with that disclosed at the 2PH acquisition and capital raise, which includes CY21 EBITDA-S and NPAT-S being marginally ahead of CY20. There is still a significant amount of domestic activity to occur over the second half, with positive momentum driving the remainder of the citrus season, especially with strong export into Japan, China and Korea, and the main berry season expected to deliver healthy growth versus previous comparable period.”

The Costa share price is now down 21% in 2021.

The post Costa (ASX:CGC) share price falls 4% after reporting modest first half growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 owns shares of and has recommended COSTA GRP FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Polynovo Ltd (ASX: PNV) share price is languishing in early trade on Thursday as the medical devices company reported its FY21 earnings.

Let’s investigate further.

Polynovo share price stalls on strong revenue and on turning a profit

Here are the highlights of the company’s earnings report:

• Total revenue increased 32% year on year to $29.3 million
• Distributor sales also grew by 53% over the year
• Gross margin increased by 3% from “manufacturing efficiency gains”
• Corporate and overhead expenses also increased by 10% as the business expanded
• Net profit after tax of $260,000 when adding back in non-cash items.
• Achieved break even in FY21.

What happened in FY21 for Polynovo?

In a positive for the Polynovo share price, the company grew revenue and product sales by 32% and 34% respectively from the year prior.

As a result of “manufacturing efficiencies”, the company saw a 3% improvement in its FY21 gross margin, helping an operating profit of $400,000, up from a loss of $1.2 million the year prior.

Operating expenses increased by 26% year on year to $27.3 million as a reflection of the business expanding. As a result, corporate and overhead expenditures widened by 10% from this as well.

Polynovo also increased its staff headcount from 78 to 106, a 36% increase over the year. This helped to drive sales and also grew “employee-related expenses” by about 30%.

Consequently, the company reached its break-even point in FY21 and turned a net profit after tax (NPAT) of $260,000 and EBITDA of $635,000 which could weigh in on the Polynovo share price.

This was backed by a 55% year on year growth in research and development (R&D) to focus on key clinical trials.

Polynovo left the quarter with $7.7 million in cash on hand, flat on its half-year results, but down from $11.6 million in FY20. Although, there was “minimal cash burn from operations” at $250,000.

The company also commissioned its Unit 1 manufacturing facility to produce polymers, micro-spheres, foam cutting and a raft of other functions.

In addition, the company also obtained 99 new hospital customers and 7 new distributors that will be covering 9 markets.

What did management say?

Speaking on its FY21 performance, Polynovo’s directorship said:

Sales in all our direct markets continue to grow with the second half providing strong improvement in revenues, new account acquisitions and sales team expansion. Importantly PolyNovo achieved a small profit (excluding non-cash items) and was cash breakeven, a significant company milestone. Our cash on hand position is strong as at 30 June 2021 and forward cashflows are building despite forecast expenditure required for growing sales teams and investing in new product development.

What’s next for Polynovo?

Polynovo expects strong results in FY22 across all of its key markets, including the US, Europe, UK Middle East, Asia, Australia and New Zealand.

The company’s NovoSorb graft is expected to see sales growth in FY22, with “70% of burns centres now having purchased” the product.

Furthermore, Polynovo intends to exhibit “aggressive revenue growth” by further expanding its headcount and entering into new markets, particularly within the European Union.

Finally, the company will continue its key clinical trials throughout the coming periods in FY22.

Regarding its outlook, Polynovo’s directorship concluded “the business will continue to reinvest cash flows to expand market share in existing markets, enter new markets, and develop new products”.

The Polynovo share price is down 0.94% on the day and is in the red by 46% this year to date. This extends the loss over the last 12 months of about 3%.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% over the last year.

The post Polynovo (ASX:PNV) share price flat as revenue grows 32% in FY21 appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO. 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 Bruce Jackson.

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The Ardent Leisure Group Ltd (ASX: ALG) share price has rocketed 25% on Thursday morning after the leisure and entertainment group’s latest full-year results release.

Ardent Leisure share price rockets on bumper EBITDA figures

Some of the key takeaways from this morning’s FY21 results include:

• Revenue down 1.9% from restated FY20 results to $390.7 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 165.6% to $67.3 million
• Net loss after tax reduced by 36.1% to $86.9 million
• EBITDA excluding specific items up 434.7% to $30.6 million

The Ardent Leisure share price has surged higher on Thursday morning following the latest update.

What happened in FY21 for Ardent Leisure?

A strong result for Main Event, the group’s chain of US family entertainment centres, underpinned the full-year result. The US-based segment reported EBITDA of US$64.3 million, up 70.9% on the prior year. Excluding specific items, segment EBITDA jumped 168.1% to US$36.5 million.

Ardent Leisure is anticipating four new centre openings in FY22 following the strong trading result in the second half of the year.

COVID-19 disruptions were unsurprisingly a major drag on Australian earnings. Theme park traffic remains subdued with interstate borders closed and lockdowns interrupting the Aussie economy.

What did management say?

Ardent Leisure Chairman, Dr Gary Weiss, had the following to say about the result:

We are pleased to see our results have improved on prior year notwithstanding the ongoing impact of COVID-19 on our businesses.

The second half of the financial year has seen Main Event rebound well, with constant centre EBITDA outperforming pre-COVID levels in the latter part of the year. We are optimistic that this positive momentum will continue into FY22.

Today’s Ardent Leisure share price surge shows investors are similarly optimistic following today’s results.

What’s next for Ardent Leisure and its share price?

Ardent Leisure remains optimistic with pent up demand across local and interstate markets. The vaccine rollout and subsequent reopening of the broader economy are hoped to boost earnings.

The Ardent Leisure share price is now up 83% year to date following this morning’s surge, meaning it has significantly outperformed the S&P/ASX 200 Index (ASX: XJO).

The post Ardent Leisure (ASX:ALG) share price rockets 25% on FY21 earnings surge appeared first on The Motley Fool Australia.

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• City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth
• Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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The Dicker Data Ltd (ASX: DDR) share price is moving into uncharted territory this morning. This comes after the company released its FY21 half-year results before market open today.

At the time of writing, Dicker Data shares up 4.26% to a record high of $16.41 apiece.

Let’s take a closer look to see how the IT distributor performed for the period.

Dicker Data share price soars after achieving growth across all key metrics

The Dicker Data share price is advancing following the company’s interim result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Revenue of $1,069.3 million, up 6.3% year on year (FY20 $1,006.1 million);
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $51.2 million, up 8.6% (FY20 $47.1 million);
• Net profit after tax of $32.1 million, up 9.2% (FY20 $29.4 million);
• Interim dividend of 9 cents per share, bringing total dividends paid for half-year to 19.5 cents apiece

What happened in FY21 for Dicker Data?

Investors are buying up Dicker Data shares as the company registered a solid scorecard for the first half of FY21.

Dicker Data maintained its upwards revenue trajectory, despite the supply constraints such as the global chip shortage.

At the country level, Australia grew revenues by $50.2 million, up 5.4%, and New Zealand by $13 million, up 18.8%.

During the period, the company added 5 new vendors which accounted for incremental revenue of $14.5 million. Of the existing vendors, sales lifted by $46.2 million, up 4.6% on the prior corresponding period.

Overall, profit increased as a result of growth in other income and lower interest costs.

What did management say?

Dicker Data chair and CEO David Dicker, commented on the solid achievement, saying:

We are pleased with the HY21 results which represents over 43 years of the company’s consistent and strong results. Despite ongoing changes in the current environment, we’re operating in, we will continue to focus on executing strategic decisions that ensure we continue to grow, meet challenging requirements and deliver value-added services to our vendors and reseller partners.

The recent Exeed acquisition further demonstrates the commitment to take on new opportunities, deliver results for our people, investors, resellers and uphold our value proposition. Our recent record share price further consolidates our place as Australia’s leading distributor and a fast growing and high returning tech stock.

What’s instore for Dicker Data in FY22?

Looking ahead, Dicker Data advised that FY22 is expected to be a bumper year as Australia’s lockdowns accelerate digital agendas.

The company noted that demand for its technology and value-added services remains robust. This is underpinned by government incentives for IT hardware, software and internet services in the small-to-medium business market. Ongoing uncertainty in the economy has led business to adopt a remote and digital workforce.

In addition, the global chip shortage is expected to continue for the foreseeable future as manufacturers work to manage the available inventory. Despite the current challenges, Dicker Data is experiencing strong demand with a number of backlog of orders to fulfil.

It noted that when supply improves, demand is anticipated to be met in the second half of 2021.

Dicker Data chief operating officer and executive director, Vladimir Mitnovetski added:

The company sees its greatest opportunity in the next 12 months in supporting reseller partners who are building and delivering return to work solutions and strategies that are compliant with evolving Government guidelines. The commercialisation of edge technologies will accelerate as home offices become office sub-branches that require connectivity, security and device management solutions.

Dicker Data share price snapshot

Year to date, the Dicker Data share price has stormed 50% higher. When factoring in the past 12 months, the company’s shares have more than doubled in value.

Based on the current Dicker Data share price, the company has a market capitalisation of around $2.7 billion.

The post Dicker Data (ASX:DDR) share price hits record high following strong interim results appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Eagers Automotive Ltd (ASX: APE) share price is flat this morning after the company released its report for the first half of FY21.

Shares in the automotive dealer have been trading in a wide range as investors digest its report.

Let’s take a look at how Eagers performed for the first half of FY21.

Highlights from Eagers’ first-half report for FY21

• Statutory Profit After Tax of $202.3 million, compared to $11.8 million in 1H20
• Underlying Operating Profit Before Tax of $218.6 million, compared to $40.3 million in 1H20
• EBITDA from continuing operations increased to $378.0 million, compared to $228.5 million in 1H20
• $661.1 million cash on hand as at 30 June 2021
• Statutory Earnings per Share (EPS) of 77.1 cents per share (cps) compared to 3.2 cps in 1H20

Eagers also declared an ordinary dividend to shareholders of 20 cents per share. In addition, the company also approved a special dividend of 8.4 cents per share following the sale of its Daimler Trucks business.

What happened to Eagers in the first-half of FY21?

Eagers cited that strong demand for new and used vehicles continued throughout the first half of FY21. The company noted demand was driven by favourable economic conditions and changes in social trends and consumer behaviour.

In the larger markets of Queensland, New South Wales and Victoria, Eagers recorded sales increases of 33.9%, 29.1% and 22.3% respectively.

Eagers also noted that the company was able to mitigate the impact of localised COVID-19 government restrictions for the first half.

The company also said cost reductions managed to deliver more than $100 million in annualised savings.

In addition, Eagers also noted strong growth from its pre-owned business easyauto123. In addition, the company highlighted strong growth in its property strategy, with $110 million worth of property acquired during the period.

What did management say?

Commenting on the half-year performance, Eagers Automotive CEO Keith Thornton noted:

Our first half results reflect strong market dynamics, a disciplined approach to managing operations within the current environment and the benefits of our Next100 strategic progress and are further validation of our transformative merger with AHG. A key driver of our strong financial performance has been the deliberate action we have undertaken to simplify our business and reduce our cost base. This has resulted in permanent cost savings that will continue to benefit shareholders in future periods.”

What’s next for Eagers Automotive?

Eagers painted an optimistic outlook for the company moving into the second half.

The company cited that its strong balance sheet provides flexibility and capacity to invest in organic growth and acquisition opportunities.

Eagers cited a strong devotion to the execution of its Next100 strategy and accelerating the scaling of its easyauto123 business.

In addition, the company plans to advance its property strategy through the acquisition of strategically located sites.

The post Eagers Automotive (ASX:APE) share price stalls on half-year report appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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Shares in emerging ASX tech company Megaport Ltd (ASX: MP1) have skyrocketed over the past 6 months.

The Megaport share price has rallied almost 40%, from a low of $12.15 six months ago to $17.09 at the time of writing. The company even set a new 52-week high price of $18.55 on 30 June.

It has been a busy few months for Megaport, with the release of the company’s FY21 full-year financial results, as well as the announcement that it had completed a key strategic business acquisition.

Let’s take a closer look at how these two events have boosted the Megaport share price.

About Megaport

First, a quick reminder of what Megaport actually does.

Megaport describes itself as a network as a service (NaaS) company. It leverages cloud technology to supply “on demand” network services to corporate clients. It helps clients expand their network connectivity, and also allows them to manage their bandwidth usage.

Customers have the ability to scale up their bandwidth requirements when demands are high, and then reduce consumption during off-peak times. This flexibility means Megaport’s customers can tailor the network to suit their individual needs, and better manage their overall costs.

Recent news

Let’s start with the financials.

Megaport released its full-year FY21 results to the market on 10 August. The company recorded revenues of $78.28 million for FY21, a year-on-year uplift of 35%. This was underpinned by strong growth in customer numbers, with Megaport ending the year with 2,285 active users (an increase of 24% over the prior year).

Megaport CEO Vincent English commented on the result, saying that the company’s “investment in innovation and products supported big growth in Fiscal Year 2021”. He said that Megaport’s mission for FY22 was to accelerate growth and increase its “lead in the NaaS space”.

One way to drive growth is through acquisitions.

On the same day as it released its annual results, Megaport also reported that it had acquired tech company InnovoEdge for up to US$15 million, half in cash and half in ordinary shares of Megaport.

InnovoEdge develops software to help customers manage and analyse the performance of cloud-based applications. In its release to the market, Megaport stated that the acquisition would provide “increased functionality” on its NaaS platform.

Megaport share price snapshot

Megaport’s strong financial performance and growth strategy appear to be the catalysts for sending its shares soaring higher recently.

The Megaport share price is up almost 5% over the past month.

The post The Megaport (ASX:MP1) share price is up almost 40% in 6 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The City Chic Collective Ltd (ASX: CCX) share price has been a very strong performer on Thursday.

In morning trade, the plus sized fashion retailer’s shares have jumped 13% to a record high of $6.19 following the release of its full year results.

City Chic share price jumps after strong sales and profit growth

• Sales revenue up 32.9% to $258.5 million
• Comparable sales growth of 31.6%
• Online sales growth of 49.3%
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 59.8% to $42.4 million
• Underling net profit after tax up 80.6% to $24.9 million
• No dividend for FY 2021

What happened in FY 2021 for City Chic?

For the 12 months ended 30 June, City Chic reported a 32.9% (38.5% in constant currency) increase in sales revenue to $258.5 million.

This was driven by a 55.6% increase in online sales to $184.6 million and an 11.2% increase in Stores revenue to $67 million. This was offset slightly by weakness in Marketplace and Wholesale revenues.

Strong sales growth was achieved across all regions, which led to market share gains in the ANZ region.

Thanks to margin expansion, City Chic’s earnings grew at an even quicker rate. City Chic’s net profit after tax was up 80.6% on an underlying basis to $24.9 million.

What did management say?

City Chic’s Chief Executive Officer and Managing Director, Phil Ryan, commented: “Our strategic vision to lead a world of curves has taken a huge step in the last twelve months despite the impacts of the pandemic. I am proud and thankful for the way our team has remained committed to delivering for our customers.”

“Our razor-sharp focus on the three pillars of plus-size, digital and global customer acquisition have again delivered strong results. In the past year 73% of our sales were through the online channel, and we have over one million global active customers.”

What’s next for City Chic?

Also giving the City Chic share price a boost today was news that it has started FY 2022 positively, with strong top line and comparable sales growth.

This will soon be boosted by a number of marketplace partnerships that are scheduled to go live in September. This includes with Walmart in the US, Debenhams in the UK, and eBay in Australia. After which, marketplace integrations with Zalando in Europe, Amazon in the UK, Target in the US, and the Iconic in Australia are due to go live later in the half. Outside that, no guidance has been given for the year ahead.

The City Chic share price is up 54% in 2021.

The post City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The Whitehaven Coal Ltd (ASX: WHC) share price is sinking in early trade, down 3.4% to $2.15 per share.

Below, we take a look at the ASX coal miner’s financial results for the year ending 30 June (FY21).

Whitehaven share price falls on FY21 results

• Revenue of $1.56 billion, down from $1.72 billion in FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $204.5 million, down 33% year-on-year
• Operating cash flows of $138.8 million, a decrease of 5%
• Net loss after tax before significant items of $87.3 million, compared to a net profit after tax (NPAT) of $30.0 million in FY20

What happened during the reporting period for Whitehaven?

During the financial year, significant expenses for Whitehaven totalled $650 million, primarily related to asset impairments at its coal mines. FY20 saw no significant expenses.

Addressing the $87 million net loss before significant items – compared to the $30 million net profit the prior year – Whitehaven said its EBITDA margin on sales of produced coal decreased from $21 per tonne in FY20 to $14/t in FY21. The averaged realised price also fell by $9/t to $95/t in FY21. That was largely due to a strengthening Aussie dollar against the greenback.

The 14.4Mt of coal sales during the year were “broadly in line” with the prior year, but fell short of expectations.

Coal stocks of 2.3Mt were 17% above FY20 levels.

As at 30 June, the company had a net debt position of $808.5 million. It reported that it “holds a strong capital base to maintain investor, creditor and debt market confidence and ensure the business is well positioned to support attractive future opportunities”.

No final dividend was declared.

In the early months of FY22, Whitehaven reports it has repaid $178 million of debt drawn under its senior bank facility.

What did management say?

Commenting on the results, Whitehaven’s CEO, Paul Flynn said:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.

In the reporting period cyclical lows in coal price were replaced with record highs, with the gC NEWC index currently trading around of USD$170 per tonne.

While we had our hands full putting the more difficult geological conditions at Narrabri behind us, we also saw our largest production asset, Maules Creek, achieve record annual ROM production of 12.7Mt.

What’s next for Whitehaven?

The company notes that metallurgical and thermal coal prices have increased significantly from their lows in mid-2020.

Whitehaven noted:

Strong China coal demand, supported by increased economic activity and challenges in expanding domestic China coal production, compounded by China’s ban on Australian coal, have modified coal flows in the seaborne market and elevated seaborne coal prices to record levels.

It said that “tendering from Asia-based customers remains active” and the company has seen increased interest by customers to secure coal for the 2022 calendar year. It also highlighted that supply disruptions continue to hamper other major coal producing nations across the world.

Flynn said, “Today, the outlook is better than we have seen for some time, with the strong price environment putting us on an accelerated timeline to de-leveraging the balance sheet and returning cash to shareholders.”

The Whitehaven share price is up 111% over the past 12 months.

The post Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The Bigtincan Holdings Ltd (ASX: BTH) share price slumped at the market open but has since pared back its losses following the group’s full-year results release.

Bigtincan share price seesaws as revenue surges 42%

Some of the key takeaways from this morning’s result include:

• Annual recurring revenue (ARR) up 48% on the prior corresponding period (pcp) to $53.1 million
• Group revenue up 42% on pcp to $43.9 million
• Customer retention rate flat at 89%
• Gross margin flat at 85%

What happened in FY21 for Bigtincan?

It was a big year for the Aussie sales enablement software provider. Bigtincan estimates an addressable market of more than $10 billion exists for the business with more than 500,000 licensed seats at 30 June 2021.

The software group diversified its recurring revenue base throughout the year across Life Sciences (20.1%), Technology (18.5%), Retail (17.2%), Telecommunications (14.2%), Financials (11.9%), Manufacturing (8.0%) and Other (10.0%).

The Bigtincan share price is up nearly 40% in 2021 having surged higher following yesterday’s capital raising update.

Bigtincan grew its lifetime value (LTV) of customer subscriptions from $270 million in FY20 to $392 million as at 30 June. That was aided by strong organic and acquisition-based growth throughout the year with the purchase of Vidinoti, VoiceVibes, ClearSlide and Agnitio completed in FY21.

Bigtincan will also acquire Brainshark for US$86 million (A$116 million) in cash. The purchase will bring Bigtincan’s sustainable ARR to $99 million with estimated organic growth of $20 million in FY22.

What’s next for Bigtincan?

Bigtincan is targeting ARR above $119 million with revenue above $100 million for FY22. That includes ongoing growth from winning new customers as well as targeted, strategic acquisitions to take advantage of market conditions.

The Bigtincan share price has climbed 52.7% in the past 12 months and is trading just shy of its $1.60 52-week high. At the time of writing, the company’s shares are changing hands for $1.49, up 2.76%.

The post Bigtincan (ASX:BTH) share price seesaws after revenue surge appeared first on The Motley Fool Australia.

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• Bigtincan (ASX:BTH) share price rockets 20% with capital raising update
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is climbing higher on Thursday. This follows the release of the airline’s FY21 full-year earnings. A result of what CEO Alan Joyce described as “diabolical” trading conditions.

At the time of writing, shares in the Aussie airline are up 2.26% to $4.98 – suggesting investors had braced for even worse.

What’s happening with the Qantas share price?

Investors are buying up the Qantas share price this morning, despite the company posting a $2.3 billion loss for the 2021 financial year.

According to its results, the airline operator was at the mercy of COVID-19 lockdowns and restrictions. As a result, the international segment was confronted with a challenging environment, to say the least.

Including freight, Qantas’ international business made a $157 million loss in earnings before interest, tax, depreciation, and amortisation (EBITDA).

While international capacity had benefitted from the trans-Tasman bubble, this was quickly squashed following the Greater Sydney lockdown. New Zealand suspended the travel agreement, citing the risk from the Delta strain as too great — this put downward pressure on the Qantas share price.

Qantas CEO Alan Joyce noted his expectation for the total costs of the pandemic, stating:

It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months. By the end of this calendar year, it’s likely COVID will cost us more than $20 billion in revenue.

However, domestic travel delivered an EBITDA profit, potentially helping the Qantas share price this morning. Moreover, Qantas and Jetstar combined pulled $304 million in underlying EBITDA profit during the period.

Where to from here?

While the COVID-19 situation remains unpredictable, Qantas is expecting Victorian and New South Wales’ borders to reopen in early December.

Meanwhile, travellers hoping to look further abroad may have to wait until the end of 2021.

Surprisingly, the Qantas share price is shaking off the result this morning. Instead, investors appear to be looking ahead to the potential reopening once vaccination targets are met.

The post Qantas (ASX:QAN) share price rises despite big COVID-19 blowout appeared first on The Motley Fool Australia.

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• The Qantas (ASX:QAN) share price fell 6% last time the company reported
• It’s been a good week for the Qantas (ASX:QAN) share price
• Iron ore price plunge hurting most, but helping exporters. Plus, optimism the ticket to boost vaccinations. Scott Phillips on Sky News First Edition

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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