The oOh!Media Ltd (ASX: OML) share price has tipped slightly higher on Monday after the company released its 1H FY21 results.

At the time of writing, the OML share price is up 0.46% to $1.523.

OML share price lifts on EBITDA surge

The recovering outdoor advertising market has kicked off an earnings recovery for the OML business.

Despite the OML share price edging lower on Monday, the company delivered a solid financial performance in the first half, with highlights including:

• Revenue rose 23% against the prior corresponding period (pcp) to $251.6 million.
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 209% to $33.3 million
• Reported net loss after tax of $9.3 million compared to a loss of $28.0 million in pcp
• OML achieved #1 market position for outdoor advertising in Australian and New Zealand markets.

What happened to OML in 1H FY21?

The OML share price has been bumpy for the past 9 months despite a strong recovery in its financial performance.

The company advised that revenues in key formats have rebounded strongly, with commute, road and retail advertising formats increasing 26%, 44% and 40% respectively compared to 1H 2020. These three verticals contributed to approximately 90% of group revenues in 1H FY21.

oOh!Media said that the road format continued to be the best performing category following on from 2020, surpassing 1H 2019 figures by 16%. Commute has continued to be impacted by a decline in rail passenger figures in key stations in the Sydney and Melbourne rail networks. While retail advertising delivered a solid improvement and approaching 1H19 revenue levels.

Other minor formats including fly and locate (office), continued to be impacted in the first half through lower audience members, with revenues falling 56% and 33% respectively.

Management commentary

oOh!Media CEO Cathy O’Conner commented on the first half result, saying:

We have seen strong audience growth post lockdowns which has led to a significant turnaround in revenue for the half, particularly in our key formats of Road, Retail and Street Furniture in Australia and New Zealand.

That has also been a function of our strong suburban and regional network where we continue to provide unrivaled reach and frequency for advertisers.

Looking over at the company’s core Australia and New Zealand operations, O’Conner said that:

In Australia audience levels were consistent up to May 2021 before declining as a result of the Melbourne lockdown in June. Overall revenue has held consistently at 80% of 2019 levels with revenue in Road performing particularly strongly at 116% of the first half of 2019. New Zealand also performed at or slightly above 2019 levels.

As conditions have become more fluid during the pandemic, we are seeing advertisers capitalising on the flexibility of digital out of home (DOOH). With the largest quality digital network across the region, oOh! is well positioned to respond.

What’s next for oOh!Media?

oOh!Media advised that revenue for Q3 was currently 38% higher than the pcp and 74% higher than Q3 2019.

The company said that forward visibility remained uncertain “given the ongoing effects of COVID-19 lockdowns and associated movement restrictions”. However, OML expected that when the current lockdowns end, “there will be a strong recovery in audiences and associated revenues as has been the case previously”.

Despite a largely positive outlook and first half-performance, the OML share price has slipped 6.5% year-to-date.

The post OML (ASX:OML) share price up on first-half earnings rebound appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 recommended oOh!Media Ltd. 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 NIB Holdings Ltd (ASX: NHF) share price is falling heavily on Monday morning. This comes after the private health insurer released its full-year results for the 2021 financial year.

At the time of writing, NIB shares are down 11.28% to $7.08. It’s worth noting that last Friday, the NIB share price touched a 52-week high of $8.05.

Let’s take a look at what the company reported.

NIB share price plummets despite growth across key metrics 

The NIB share price is sinking today regardless of the company delivering a robust result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Total group revenue of $2.6 billion, up 2.9% on the prior corresponding period (FY20 $2.5 billion);
• Group expense claim of $2 billion, up 2.5% (FY20 $1.95 billion);
• Group underlying operating profit (UOP) of $204.9 million, up 39.5% (FY20 $146.9 million);
• Net profit after tax (NPAT) of $160.5 million, up 84.5% (FY20 $87 million); and
• Fully-franked final dividend of 14 cents per share, up from 4 cents per share.

What happened in FY21 for NIB?

NIB experienced strong arhi (Australian Residents Health Insurance) policyholder sales growth and retention. Net arhi policyholder growth lifted 4.2% (26,000 new policyholders) versus 3.1% for the industry average.

This was partly driven by elevated community awareness for financial protection and risk of disease as a result of COVID-19. Resumption of previously suspended policies, and the benefits of arhi’s distribution strategy, also attributed to the result.

In addition, its New Zealand business saw stable performance of 5,500 policyholders (excluding international students) added to the books.

However, both the international inbound and travel businesses were significantly impacted by border closures. Each segment reported a loss despite cost reduction and business efficiency measures implemented throughout the year.

Iihi (international inbound health insurance) membership recorded a loss of $5.9 million, while NIB travel sales also registered a loss of $13.6 million. NIB remains confident that both iihi and travel sales will bounce back.

In contrast, these two businesses combined contributed $41.5 million to group earnings in FY19 compared with a loss of $19.5 million in FY21.

NIB also put aside a $34 million provision for further catch-up of deferred claims in relation to COVID-19. Although it did note that forecasting future claims is extremely difficult to predict at this time.

What did management say?

NIB managing director Mark Fitzgibbon commented on the milestone achievement, saying:

Neither FY21 or FY20 can be considered “normal” given fluctuation in healthcare utilisation and claims experience. A high level of provisioning in our accounts for deferred claims especially caused a substantial decline in FY20 UOP while our FY21 claims experience has turned out better than expected.

… The pandemic has clearly heightened people’s awareness of the risk of disease and the need for financial protection as well as timely access to treatment. This is reflected in our policyholder growth which has also benefited from improvement in retention and resumption of previously suspended policies.

What’s next for NIB?

Looking ahead, NIB expects market conditions for FY22 to remain similar to FY20, with the pandemic having mixed consequences.

Ahri’s policyholding is expected to lift between 2% to 3%, along with stable and consistent growth in New Zealand.

The near-term outlook for the iihi and travel businesses is expected to be challenging due to restrictions on foreign entry and travel.

On a positive note, NIB obtained a licence to sell health insurance in China through its joint venture with Chinese pharmaceutical company Tasly. First sales were made in July; however, the business isn’t expected to be profitable for another couple of years.

Given the unpredictable nature of COVID-19, NIB refrained from providing an earnings guidance for the FY22 period.

The post NIB (ASX:NHF) share price sinks 11% despite profit surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. 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 recommended NIB Holdings 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 Commonwealth Bank of Australia (ASX: CBA) share price is up 0.8% this morning.

CBA’s share price is rising in early trade as the bank reports that it is rolling out COVID-19 vaccination centres.

What did CommBank report

In a media release this morning CommBank said it is opening dedicated vaccination centres to help its employees and their families in the national fight against the pandemic. The news is unlikely to have an immediate material impact on the CBA share price.

The vaccination centres will initially focus in areas of concern in the Greater Sydney area. The first centre opened in Parramatta in early August. Two more opened last week. Centres in Blacktown, Cabramatta, Auburn, Liverpool and Campbelltown are scheduled to open their doors this week.

CommBank reports it is working on opening more vaccination centres in other local government areas (LGAs) of concern in New South Wales over the coming weeks.

The vaccination program for employees and their families is on a voluntary basis, and works hand in hand with the rapid antigen testing CBA now offers its branch staff in those same LGAs of concern.

Commenting on the extraordinary measures, Commonwealth Bank Group Executive Human Resources Sian Lewis said:

We know that preventative measures like vaccinations, and pre-emptive measures like increased testing, are the best courses of action at this time to help our community combat the spread of COVID-19. As an essential service, with one of the largest workforces in the country, we are committed to implementing safety and support measures to help keep our people, customers, and in turn the broader community, as safe as possible.

CBA’s employee vaccination program will help speed up the vaccination rollout in NSW, and we are committed, as a bank, to do everything we can to support the rollout across the country.

The bank said that as vaccine supplies increase it will roll out its vaccination program across Australia. It reports that 90% of 11,000 employees surveyed last week said they plan to get the vaccine.

CBA share price snapshot

The CBA share price has been a strong performer over the past 12 months, up 44%. That compares to a gain of 22% on the S&P/ASX 200 Index (ASX: XJO).

Year to date, CBA’s share price continues to outperform, up 21% in 2021.

The post CBA (ASX:CBA) share price gaining as bank rolls out vax centres 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 Openpay Group Ltd (ASX: OPY) share price has started the week on a positive note.

In morning trade, the buy now payer later (BNPL) provider’s shares are up 12% to $1.41.

Why is the Openpay share price surging higher?

Investors have been bidding the Openpay share price higher on Monday following the release of a positive announcement.

According to the release, the BNPL provider has signed a two-year agreement with global information technology giant HP.

The agreement will see Openpay deliver its OpyPro business to business (B2B) platform to HP, allowing an enhanced trading experience for HP business customers. The OpyPro platform manages trade accounts end-to-end, including account application processing, seamless business customer onboarding, credit checks, approvals, and account management.

This is the second B2B contract win, following a deal with Woolworths Group Ltd (ASX: WOW) late last year.

The company expects average order values for HP products to be significant and for the OpyPro product to drive strong transaction value for HP for all on account sales to HP business customers.

Management commentary

Openpay’s CEO and Managing Director, Michael Eidel, was very pleased to get HP on the platform.

He commented, “We are delighted to have signed HP as our second B2B contract win, adding another household name to our growing list of iconic partners. This deal demonstrates Openpay’s ability to attract top tier business partners as we work to make the business-to-business payment experience easier and more efficient.”

“This will also be the first time we’ve put our relationship with B2B funding partner Lumi, into action. Having Lumi in the mix enables us to continue to deliver OpyPro as a capital light, high transaction-volume SaaS play. We look forward to going live together imminently,” he added.

Earlier this year the company signed an agreement with Lumi Financial Management to provide SME funding to OpyPro customers. This means OpyPro can remain a pure SaaS, capital light solution.

Lumi’s CEO, Yanir Yakutiel, commented, “We are extremely excited about our partnership with Openpay and HP. This is something that we have been working on with Openpay in the background for several months and it is always exciting when something that started as an idea comes to life. This rollout is the first of many and we are looking forward to announcing more partnerships in the weeks and months ahead.”

Despite today’s gain, the Openpay share price is down a disappointing 40% in 2021.

The post Why the Openpay (ASX:OPY) share price is rocketing 12% higher 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 Audinate Group Ltd (ASX: AD8) share price is climbing higher this morning. This follows the audio tech company releasing its FY21 full-year results in the early hours.

At the time of writing, Audinate shares are up 2.2% to $10.73. The company’s shares have been pushing higher over the past month or so after revealing its FY21 trading update.

Audinate share price jumps following strong revenue growth

• Revenue up 22.5% to US$25 million (A$33.4 million)
• Gross profit increased 23.1% to US$19.2 million compared to prior year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of A$3 million, up 50.1%
• Bottom line losses narrowed to A$3.4 million, a 17% improvement on FY20
• Expanded into video products with launch of Bolin Technology and Patton Electronics

What happened in FY21 for Audinate

The Audinate share price is rising on Monday after reporting its full-year results. Investors will be thumbing their way through the software and hardware supplier’s latest metrics to make up their own minds.

According to the release, Audinate managed to pull in total revenue of US$25 million in FY21 – representing an increase of 22.5% from the previous year. This growth was predominantly driven by software products. In fact, software revenue grew by ~62% thanks to an uptick in Dante software royalties.

Additionally, a positive for the Audinate share price is its narrowing losses on the bottom line. Net losses after tax came in at A$3.4 million, compared to a A$4.1 million loss in FY20. The company noted this improvement was a result of increased revenue, lower income tax expense, and an increase in depreciation and amortisation write-offs.

Audinate made note of its expanded total addressable market, now residing above A$1 billion in total. This reflects the company’s entrance into video products in addition to audio. During the year, Audinate successfully launched 6 OEM Dante video products. As a result, it now can offer complete ‘Dante AV’ solutions.

What did management say?

Commenting on the result, Audinate Co-founder and Chief Executive Officer Aidan Williams said:

The strong demand for our technology as the AV industry recovers from COVID is particularly
encouraging for Audinate’s longer-term outlook. In the short term, we expect continued supply chain
uncertainty throughout the remainder of CY21, and whilst this may limit revenue growth in the near
term, we remain confident that Audinate can deliver US$ revenue growth in the historical range for
FY22.

Additionally, regarding the company’s video product developments, Mr Williams said:

The launch of Dante video products, record numbers of design wins and the establishment of an
engineering team in Cambridge, UK are significant milestones as we execute our strategy to
revolutionise the AV industry.

What’s next for Audinate?

The company currently holds a record level of backlog sale orders for the proceeding months. To support future growth in its video and cloud services, Audinate will be targeting a headcount of 170 employees over FY22. This would be a notable increase on the 135 employees as at 30 June 2021.

Looking ahead, the focus is on driving further design wins for software products, reducing product adoption friction, and improving scalability — among other things.

Finally, Audinate expects revenue growth to return to the historical range in FY22.

Audinate share price snapshot

Shareholders in Audinate would have to be pleased with their returns over the past year. The Audinate share price delivered a significant outperformance of the S&P/ASX 200 Index (ASX: XJO), climbing 97% compared to 21.7%.

Despite impacts from live music being put on ice due to the pandemic, the audiovisual tech company has ascended to new heights.

Audinate now holds a market capitalisation of approximately $800 million.

The post Audinate (ASX:AD8) share price climbs as FY21 revenue surges 22% appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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 Reliance Worldwide Corporation Ltd (ASX: RWC) share price has a new annual record after the company released its full-year results.

At the time of writing, shares in the plumbing manufacturer are trading for $6.17 – up 3.87%. Earlier, shares hit the benchmark high of $6.18. The S&P/ASX 200 Index (ASX: XJO) is 0.39% higher.

Let’s take a closer look at today’s announcement.

Reliance Worldwide share price rockets on 86% increase in dividend

• Net sales of $1.3 billion, which is up 15% on the prior corresponding period (pcp).
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $341 million. That’s a 56% leap on the pcp.
• Reported NPAT of $188 million – up 111% on the pcp.
• Basic earnings per share (EPS) of 24 cents – also up 111% on the pcp.
• Full year dividend of 13 cents per share (6 cent interim + 7 cent final payment), 20% franked. It’s a rise of 86% on the pcp and, on the current share price, is a yield of 2.19%.

What happened in FY21 for Reliance Worldwide

In August 2020, the Reliance Worldwide share price was impacted when the Victorian government introduced stage 4 restrictions as part of its ultimately successful attempt to halt the spread of coronavirus during its second wave.

Reliance Worldwide operates 4 factories in Melbourne that ship across Australia and the wider Asia-Pacific region. After some uncertainty, Reliance assured investors it could operate as an essential business, but under restrictions.

The booming housing market also may have had affected Reliance Worldwide shares. As Motley Fool previously reported, the flourishing property and construction markets were occurring at a time of low interest rates and government subsidies. ASX construction shares, like Reliance, saw a noticeable uptick at the time.

What did management say?

Reliance Worldwide CEO Heath Sharp said the 2021 financial year had been a record one for the Company:

Over the course of FY2021 we sold more products to more customers than ever before. Each of our regions recorded strong sales growth, and this translated into strong earnings growth. The trend behind this growth was common to all our key markets, and it was the increased spending by property owners on their homes. It was supported by strong new homebuilding activity particularly in Australia where our business has its highest exposure to new residential construction.

He added:

Cost inflation pressures were markedly higher in the second half of the year, with input costs such as copper, steel and resins all trending higher, and cost increases also experienced in freight and packaging. These higher costs were able to be mitigated by price increases.

What’s next for Reliance Worldwide?

In its statement, Reliance Worldwide says it will not provide an earnings guidance for FY22 “due to the considerable uncertainty surrounding market demand and the potential impacts of further COVID outbreak”.

The company says it will update investors each quarter on trading conditions in its three regions, including sales and operating earnings.

Finally, Reliance has signed a new contract with its CEO, which it has also announced today.

The company says Sharp’s total remuneration will be adjusted to align with appropriate market benchmarks.

“This will be achieved by implementing a downward adjustment of fixed remuneration by approximately 20% over a transition period of 3 years with a corresponding increase in Short Term Incentive (“STI”) and Long-Term Incentive (“LTI”) opportunities,” according to the company.

Reliance share price snapshot

Over the past 12 months, the Reliance Worldwide share price has increased 115%. It has outperformed the S&P/ASX 200 Index (ASX: XJO) by about 90 percentage points in that time. Year-to-date, Reliance shares have gained 52%, outpacing the ASX 200’s 12%.

Reliance Worldwide has a market capitalisation of around $4.8 billion.

The post Reliance Worldwide (ASX:RWC) share price hits 52-week high after 111% profit jump appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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 G8 Education Ltd (ASX: GEM) share price has fallen in early trade. The soft start to the week comes despite the childhood education group reporting a surge in profits after a COVID-affected 2020.

At the time of writing, the G8 Education share price is down 2.86% trading at $1.02.

G8 Education share price slumps despite profit surge

Shares in the Aussie early childhood education provider are sliding after the company’s half-year results release. Some of the key takeaways from 1H 2021 include:

• Revenue up 36.8% on the prior corresponding period (pcp) to $421.5 million
• Statutory net profit after tax (NPAT) of $25.1 million compared to a $244.1 million net loss in 1H 2020
• Operating earnings before interest, tax, depreciation and amortisation (EBITDA) up 15.2% to $102.4 million
• Basic earnings per share of 6.5 cents, compared to a 62.5 cents per share loss in 1H 2020
• No interim dividend

Investors are likely to keep an eye on the G8 Education share price today after the company announced intentions to pay a full-year dividend at year-end.

What happened in first-half FY21 for G8 Education?

COVID-19 restrictions were disruptive to operations throughout the half. Core occupancy levels recovered from 65.1% in 1H 2020 (on a restated basis) to 68.0% in the most recent half-year period.

The group’s 191 regional centres performed strongly with occupancy levels up 4.4% than the COVID-19 impacted 1H 2020 result.

G8 reported a strong balance sheet (with a net cash position) to help ride out the COVID-19 storm. Management has also signalled its intention to pay a full-year dividend for the period ended 31 December 2021.

The G8 Education share price fell 16.7% from the start of the year through to 30 June.

What did management say?

G8 CEO and managing director Gary Caroll had this to say about the result:

During the half, our operating performance continued to recover, with occupancy in the first half narrowing the gap on CY19, driven by our strategic change programs and a particularly strong performance from our regional centres.

Costs were well-managed, and we remain concentrated on maintaining our balance sheet strength and flexibility.

After an encouraging first half, since June, we have started to see some impact of COVID-19 lockdowns on occupancy in the eastern states.

We have the right settings and systems in place, and are well-capitalised to weather this period and emerge in a strong position.

What’s next for G8 Education and its share price?

COVID-19 restrictions across the country continue to impact G8’s operations in FY22.

The G8 Education share price is slipping today as management sets its sights on an end-of-year dividend.

Shares in the Aussie early childhood education provider are down 14% this year and underperforming the S&P/ASX 200 Index (ASX: XJO).

The post G8 Education (ASX:GEM) share price slips despite half-year profit surge appeared first on The Motley Fool Australia.

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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. 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 Sydney Airport Holdings Pty Ltd (ASX: SYD) earnings for the first half of 2021 were released last week. Within them were several insights that could affect the shares of its ASX travel peer Flight Centre Travel Group Ltd (ASX: FLT).

Right now, Flight Centre shares are trading for $13.74 apiece. The travel agency group is expected to report its earnings for financial year 2021 on Thursday.

Let’s take a look at what Sydney Airport’s half-year results might mean for Flight Centre shares.

What can Flight Centre investors take from Sydney Airport’s results?

Flight Centre shares will be in the spotlight on Thursday as the market anticipates the release of the company’s FY21 earnings.

While we wait, let’s take a look at the earnings of what is normally Australia’s most traversed airport to see if they provide any insight on the travel industry’s woes.

Sydney Airport’s earnings included some dire figures. Here’s a snapshot of what the airport reported:

• An 81.7% greater net loss after tax benefit than it recorded in the first half of 2020
• A 36% drop in aeronautical revenue
• 6 million travellers passed through the airport – 36.4% fewer than the previous corresponding period (pcp)
• Sydney Airport saw 91% fewer international passengers than the pcp

As you can see, international travel into and out of Australia’s biggest airport dropped notably in the first half of 2021 compared to the pcp. Of course, Australia’s international borders slammed shut in the middle of the first half of 2020.

However, Flight Centre shares might be safer than that figure makes them seem. Sydney Airport reported it only saw a 3.1% drop in domestic travel for the 6 months ended 30 June.

Additionally, Sydney Airport CEO Geoff Culbert said domestic traffic rebounded well each time Australia’s domestic borders reopened. Further, before New Zealand shut its borders to Australia again, trans-Tasman traffic recovered to more than 40% of its pre-COVID levels.

This seems to suggest many Australians (and New Zealanders) were travelling however they could during the first half of 2021.

All eyes will be on Flight Centre – and its shares – on Thursday. The market will likely be waiting to see if the travel agent experienced the same strong domestic travel sector throughout FY21.

The post What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 recommended Flight Centre Travel Group 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 Bigtincan Holdings Ltd (ASX: BTH) share price won’t be going anywhere on Monday morning.

This morning the sales enablement-focused software company requested a trading halt.

Why is the Bigtincan share price halted?

The Bigtincan share price was halted this morning so the company could undertake an equity raising to fund a major acquisition.

According to the release, the company is seeking to raise $135.3 million. This comprises a placement to U.S. based investment firm SQN Investors of $21 million and an underwritten 1 for 4 accelerated pro-rata non-renounceable entitlement offer to raise approximately $114.3 million.

The equity raising is being conducted at an offer price of $1.05 per share, which represents a 12.1% discount to the Bigtincan share price at Friday’s close.

Why is Bigtincan raising funds?

Bigtincan is raising the funds after entering into a merger agreement to acquire 100% of the issued securities of Brainshark, Inc. for US$86 million (A$116 million). The release notes that Massachusetts based Brainshark is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness.

The acquisition price of A$116 million represents an acquisition multiple of 2.5x estimated sustainable annualised recurring revenue (ARR) of ~A$46 million. In light of this, Bigtincan estimates that combined FY 2022 ARR will meet or exceed A$119 million.

This will be a big lift year on year. For example, Bigtincan recently revealed that it achieved A$53.1 million in ARR in FY 2021. That was an increase of 48% from FY 2020’s ARR of $35.8 million.

Management advised that it believes Brainshark is a strong fit across all of Bigtincan’s acquisition criteria, transforming the combined business to a global leader in the sales enablement market with significant scale.

The Bigtincan share price is up 36% since this time last year.

The post Bigtincan (ASX:BTH) share price halted ahead of $116 million Brainshark acquisition 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. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Two wildly successful companies are often discussed in the same breath, whether it’s surrounding their tenured presence in the popular group of FAANG stocks or the fact that they both offer fast-growing streaming-TV services. Those stocks are none other than Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX), two longtime Wall Street darlings.

Today, both of these companies remain extremely successful, continuing to grow their top and bottom lines rapidly. Indeed, a good case can still be made for buying both companies’ stocks.

But which of these two growth stocks is a better buy today: e-commerce, cloud computing, and digital services juggernaut Amazon or pure-play streaming TV specialist Netflix?

Amazon

Amazon has stubbornly resisted the meaningful deceleration in growth you would expect from a company as big as it is. Indeed, revenue growth accelerated last year. In 2019 and 2020, revenue grew 20% and 38%, respectively. Sure, 2020 results benefited significantly from increased e-commerce use as people around the world were sheltering at home amid a pandemic. But even as Amazon laps tough comparisons from 2020, it is growing rapidly. Second-quarter 2021 net sales increased 27% year over year. 

The company’s profits have been growing even more rapidly. Net income in the trailing 12 months ended June 30, 2020, was $29.4 billion, up from $13.2 billion in the same period one year earlier.

And Amazon stock isn’t as expensive as one might think. Yes, its $1.6 trillion market capitalization is hard to fathom. But with $443 billion in trailing-12-month sales, $59.3 billion in operating cash flow, a fast-growing top line, and a steadily expanding operating margin, this valuation starts to look conservative, or even cheap.

Netflix

Streaming TV company Netflix is similarly growing its top line rapidly. Revenue increased 19% year over year during the second quarter.

But the real magic for Netflix right now is the company’s soaring earnings. EPS in the second quarter was $2.97, up from $1.59 in the year-ago period. More importantly, analysts expect rapid earnings growth to persist over the next five years because of how scalable the company’s business model is. Content costs and other expenses are quickly declining as a percentage of revenue.

On average, analysts expect Netflix’s earnings per share to compound at an average annual rate of 43% over the next five years — ahead of the 36% growth expected from Amazon. Understanding Netflix’s uncanny earnings potential is key to justifying its high price-to-earnings ratio of 56.

The verdict

Overall, both stocks look like attractive long-term investments. But the better buy might be Amazon, thanks to its robust top- and bottom-line growth and its sprawling competitive advantages from its powerful flywheel of Prime member benefits and its leadership in both e-commerce and cloud computing.

Amazon’s growth story ultimately seems more sustainable and predictable as the company benefits from numerous secular tailwinds across various aspects of its business.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Amazon vs. Netflix: Which is a better growth stock to buy? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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