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The Fortescue Metals Group Ltd (ASX: FMG) share price is bouncing back this week after the company released its FY21 full-year result.

The iron ore major reported a 74% increase in total revenue to US$22.3 billion and a 117% surge in net profit after tax (NPAT) to US$10.3 billion. The strong result was underpinned by a period of sky-high iron ore prices, where Fortescue received an average realised price of US$135/dry metric tonne (dmt) compared to US$79/dmt a year ago.

The Fortescue share price rallied 6.6% on Monday to $21.32 and is largely holding its gains in Tuesday’s session, slipping back 0.52% to $21.21 at the time of writing.

While Fortescue shareholders can finally breathe a sigh of relief after a brutal month, Fitch Solutions believes an acceleration in global iron ore production is on the horizon.

Global iron ore production to accelerate

According to an article featured on Mining.com, analysts at Fitch Solutions forecast an acceleration in global iron ore production in the coming years.

“Global iron ore production growth will accelerate in the coming years, bringing an end to the stagnation that has persisted since iron ore prices hit a decade-low average of US$55.0/tonne in 2015.”

“We forecast global mine output growth to average 3.6% over 2021-2025 compared to -2.3% over the previous five years. This would lift annual production by 571mn tonnes in 2025 compared to 2020 levels, roughly the equivalent of India and Brazil’s combined 2020 output,” says Fitch.

The research firm pointed at Brazil and Australia as the main drivers of supply growth.

Fitch believes Brazil’s iron ore production growth will rebound in the coming years following a sharp contraction and stagnation between 2018 and 2020. Vale’s Brumadinho damn collapse in 2018 sparked a number of investigations into one of the world’s largest iron ore producers, Vale.

The disaster saw multiple operations come to a standstill and a heightened level of regulatory scrutiny in what Fitch described as “the deadliest environmental disaster in the nation’s history”.

Fitch forecasts Brazil’s iron ore production to increase at an annual average growth rate of 10.6% between 2021 and 2025.

The BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue share price topped at the beginning of August following weaker steel demand from China. Despite the recent collapse of ASX-listed ore miners, Fitch believes that the big three will re-invest “currently buoyant profit into additional production”, further supporting its narrative of an accelerating near-term iron ore output.

Looking beyond 2025, Fitch expects that “lower prices will eventually drag on production rates. We forecast annual production growth to average just 1.1% over 2026-2030, with output levels stagnating by the end of the decade”.

Fortescue share price snapshot

Despite Monday’s bounce, the Fortescue share price is still well in the red for 2021, down 13.75% year-to-date.

A mammoth dividend is on the horizon for Fortescue shares, with an ex-dividend date of Monday, 6 September for a final dividend of $2.11.

At today’s prices, the final dividend alone is worth a yield of 9.9%.

The post Fortescue (ASX:FMG) share price bounces despite looming iron ore supply outlook 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 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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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.

Sector rotation is the rise of stocks in one industry, or sector, at the expense of stocks in other industries. For instance, investors fearing the broad market is poised for a correction may shed their riskier technology names and replace them with safer, more reliable utilities stocks. The selling causes technology names to lose value, while the buying pushes utilities stocks higher.

This stock-swapping process is rarely clear. Investors also don’t always replace tech names with utilities stocks. Sometimes they may choose to replace their more aggressive technology stocks with similarly risky energy names. It’s also not unusual for all stocks to be rising or falling in tandem, even if they’re doing so at different paces. The point is, nobody ever really knows how investors’ perceptions of different industries are shifting.

And there’s the rub. We know sector rotation is going to happen. We just don’t know how or when it’s going to take shape. The good news is, we can — and should — plan for this unknown.

A close look at some stock market charts just might bolster your bottom line in a big way by changing how you manage your portfolio… by making you less aggressive.

A huge gap between the best and worst

The circumstances of 2020’s COVID-19 pandemic were so unusual that nobody should be using last year as an example of how the market operates. The last time things were “normal” was 2019. So, that’s the year we’re going to use as the basis for our focus chart… and our bigger point. Using some of the more popular exchange-traded funds (ETFs) as proxies for the broad sector groups, we can see 2019’s overall gain of nearly 29% for the S&P 500 wasn’t even close to the same sort of gain some sectors made in the very same year. At the winning end of the scale you’ll find the Technology Select Sector SPDR (NYSEMKT: XLK) with a gain of almost 48%, while the Energy Select Sector SPDR (NYSEMKT: XLE) logged a gain of less than 5%.

XLE data by YCharts

From best to worst, that’s a performance difference of 43 percentage points, which is far more than the overall market gains in the average year! Just for some extra perspective we’ve also included the second-best and next-to-worst sector ETF performances in our look at 2019’s sector-based returns above. The gap between them is still pretty wide too, at 18 percentage points.

Surprised? A lot of people are.

Most investors understand some groups do better than others in any given year. What they may not realize, though, is how much better some sectors do compared to others. The 43 percentage points that separated tech stocks from energy stocks in 2019 is actually close to the usual spread between any year’s best and worst sectors. Investors that were overexposed to the technology sector in 2019 are thrilled with the decision, but folks holding out for a big rebound in energy stocks that year have to be disappointed they didn’t even match the overall market’s return.

Here’s the thing. As of early 2019, how many of us really knew technology stocks or the names that make up the the Financial Select Sector SPDR ETF (NYSEMKT: XLF) would do so well over the course of the coming twelve months? Or, how many of us knew the energy sector or the stocks that make up the SPDR S&P Telecom (NYSEMKT: XTL) would perform so badly? If we’re being honest, not many. And the people who did see what was coming were at least as lucky as they were smart.

This is why investors should diversify their portfolios across several sectors, if not all of them. The downside of holding too many stocks in the wrong sectors is much bigger than the upside of concentrating in the market’s winning sectors. Not only has your portfolio underperformed, you’ve now got one less year to make up that ground.

Leadership never lasts

And yet, there’s more to the story than the point made by a deeper look at 2019’s sector performance chart. You only have to go back and look at previous years’ sector performances to appreciate that sector leadership (and laggardship) is not only always changing, but also rather unpredictable.

Here’s 2018’s comparison. Technology stocks didn’t lead. Neither did financials. In fact, the only sector ETF to log a meaningful gain in 2018 was the Health Care Select Sector SPDR Fund (NYSEMKT: XLV). Energy stocks were once again at the bottom of the pile with nearly a 21% loss, but this time they were closely followed by the 16% setback suffered by the Materials Select Sector SPDR (NYSEMKT: XLB)…

XLB data by YCharts

… the very same materials ETF that did so well the year before. Yes, in 2017, technology stocks were back on top with a 32% gain, but the runner-up was the Materials Select Sector SPDR with nearly a 22% gain. And, similar to 2019, the difference between 2017’s best and worst-performing sector was an incredible 36 percentage points.

XLB data by YCharts

Here’s one more reference chart to consider: 2016’s sector comparison. That year, energy stocks (the same sector that would lag the next three years) led the market with a 25% gain. Also in 2016, telecom stocks (yes, another big laggard for the next three years) closely followed energy names with their 23% advance. The same technology stocks that have led the way most of the time since then were just mediocre performers in 2016, while the healthcare sector was the proverbial problem child with a 4% loss in 2016. From best to worst, 2016’s sector performances spanned 29 percentage points, rewarding oversized bets on energy but punishing big bets on healthcare and consumer staples.

XLE data by YCharts

The point is, no sector leads or lags for very long, and the performance differences resulting from these leadership changes can easily exceed 30 percentage points in just one year.

The way to win

If you have the inclination, information, and experience to do so, then sure, overexposing yourself to the right sectors and steering clear of the wrong ones could theoretically lead to market-beating gains. You don’t even have to successfully identify all the budding sector trends. Just spotting most of them is a way of improving your bottom line, as the gap between any given year’s best and worst-performing industries is surprisingly big.

The fact is, however, no one — not even market professionals — has a proverbial crystal ball when it comes to spotting sector rotation. Indeed, sometimes we seem particularly bad at spotting it. That’s a problem simply because the cost of getting it wrong can be even greater than the upside of getting it right.

Remember, lagging the broad market for any length of time means you’re behind on your goals, and the one thing you can never get back is time. That’s why we’re all truly better off just remaining well diversified all the time. 

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

The post These stock market charts will make you a smarter investor appeared first on The Motley Fool Australia.

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James Brumley 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.

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

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The Splitit Payments Ltd (ASX: SPT) share price edged 1.1% lower to 44.5 cents on Tuesday after the company released its 1H21 results.

Let’s take a closer look at the key takeaways of the buy now, pay later (BNPL) company’s results:

Splitit share price edges lower on record result and CEO change

• Merchant sales volume (MSV) increased 94% to US$172.5 million
• Gross revenue rose 79.7% US$5.5 million
• Total merchants jumped 167% to ~2,800
• Total shoppers lifted 83% to ~566,000
• Strong balance sheet including US$66 million in available cash and US$150 million credit facility

What happened to Splitit in 1H21?

The Splitit share price has been in a downtrend since late 2020, tumbling 65% year-to-date and down 75% in the last 12 months.

Despite a struggling share price, Splitit delivered a record first half-year performance with strong growth across its key metrics of MSV, revenue, active merchants and shoppers.

In the first half, multiple new large merchants with significant addressable MSV signed up to Splitit services including Google Japan. Splitit services are available in Japan’s Google Store to support instalment services for customers purchasing new Pixel 5 mobile phones, Nest products and Chromecast streaming devices.

Splitit described this high profile customer as an important step in its expansion into Asia, supplementing its growing merchant presence in key US and European markets.

The company added ~134,000 new shoppers in the first half, growing its customer base by 83% to ~566,000 shoppers. The company was pleased to highlight that its average order value remains over US$1,000 and continues to be a “critical differentiator” in an increasingly crowded BNPL market.

During the half, Splitit launched its SplititPlus payment gateway in April to reduce onboarding complexity for merchants. In addition, the company also announced that it will develop a white-label Platform as a Service offering to “broaden its opportunities and grow in non-core markets and categories”. The product has already secured new partnerships with leading Middle East BNPL provider, tabby, and leading BNPL in Pakistan, QisstPay.

In addition to its operational performance, Splitit advises that its CEO Brad Paterson will cease in this role and John Harper will be appointed as Interim CEO.

The leadership change announcement said that the Board determined “a proactive change of leadership is necessary for the company to continue building on its achievements and prioritise its ambitions to significantly expand merchant footprint across all geographies”.

Management commentary

Splitit Chair Dawn Robertson commented on the results, saying:

Splitit is pleased to report a strong first half, with the delivery of 94% YoY MSV growth, along with growth across other key metrics of revenue, merchants and shoppers. The ongoing development of our new product innovations, including Splitit Plus, and our strong global partnerships, are expected to provide more and more opportunities to increase ongoing acceptance as we pivot from a period of foundational build, into a period of scaling up.

Robertson flagged the recent M&A activity in the BNPL sector and why the Splitit offering can stand out.

Recent BNPL M&A activity has highlighted sector wide opportunities, which is likely to accelerate the strategic focus and commercial integrations across the entire sector. Splitit remains uniquely placed within the credit card / BNPL ecosystem with extensive commercial relationships that have only just begun to scale. Providing a point-of-sale solution to improve retailer conversion whilst leveraging a consumer’s existing credit, puts Splitit at the unique intersection of two significant markets – credit cards and BNPL. We believe this is a unique point of difference in an otherwise increasingly crowded market.

What’s next for Splitit?

The Splitit share price continues to underperform large-cap BNPL shares such as Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL), perhaps reflecting investor preferences for more established players.

Despite a struggling share price, the business believes it is “well placed to execute on the growth opportunities ahead”.

Splitit pointed to SplititPlus as a solution to address onboarding and integration complexity, while its emerging white-label offering could present opportunities to deliver complementary revenue.

The post Splitit (ASX:SPT) share slips on record half-year result and CEO transition 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. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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 Resimac Group Ltd (ASX: RMC) share price is in the green today following the release of the company’s earnings for financial year 2021 (FY21).

Right now, the Resimac share price is $2.49, 3.75% higher than its previous close.

Resimac share price jumps on 87% boost to profit

Here’s how the non-bank lender performed in FY21:

• Normalised profit after tax of $104 million, 87% higher than that of FY20;
• $485.5 million of revenue – 3% more than last year;
• $13.8 billion of home loan assets under management, up 11%;
• 4 cent fully franked final dividend, bringing full-year dividends to 6.4 cents per share.

Some $456.6 million of revenue came from the company’s Australian lending segment, while $28.8 million came from its New Zealand arm.

The company saw $4.8 billion of home loan settlements in FY21. It received $242.7 million of income from interest, 29% more than it did in FY20.

Resimac’s loan impairment expense also dropped 88% to $2.7 million.

The company ended the period with $619.8 million of cash.

What happened in FY21 for Resimac?

Here’s what drove Resimac, and its share price, in FY21:

The lender issued a number of new residential mortgage-backed securities (RMBS) in FY21.

First off, its subsidiary RESIMAC Limited settled a $1 billion funding transaction, RESIMAC Bastille Series 2020-1NC, in August.

Then, the company settled a $289 million (converted from New Zealand dollars) RMBS transaction in September. Another 2 $1 billion transactions were settled in October and December.

Finally, the company’s $1.5 billion RESIMAC Premier Series 2021-1 transaction was settled in March before its $1 billion RESIMAC Bastille Series 2021-1NC transaction was settled in May.

Additionally, a small portion of Resimac’s customers is still impacted by COVID-19. Resimac is continuing to provide them assistance.  

What did management say?

CEO Scott McWilliam commented on the results driving the Resimac share price today. He said:

These results reflect the momentum of our business, driven by growth across our prime and specialist portfolios in Australia and New Zealand, development of our broker and direct-to-consumer brands, strong investor demand for our bonds, and ongoing investments into our digital transformation…

Furthermore, we have achieved a record profit of $104 million by consistently delivering above system AUM growth – a clear indication that the Resimac brand continues to resonate well with both brokers and consumers alike. Our cost-to-income ratio has also decreased significantly to 32.1% as our continued focus on process and technology drives scale in the business.

What’s next for Resimac?

Here’s what market watchers interested in the Resimac share price might want to keep an eye out for in FY22:

According to McWilliam, the vaccination rollout will see the economy recovering quickly despite current economic uncertainty. The housing market is expected to improve alongside the economy.

He believes the first half of FY22 will likely be rockier than the second, bringing more macroeconomic challenges.

Additionally, the company is working on a digital transformation. It expects it will be finished in early FY22.

According to McWilliam, Resimac will soon launch “alternative loan products focused on sustainability”.

Finally, the company noted its Resimac Home Loans business and its Homeloans.com.au business are targeting $8 billion in annual settlements by FY24. Additionally, its Resimac Asset Financial business is targeting $1 billion in annual settlements by FY24.

Resimac share price snapshot

The Resimac share price has gained 14% year to date. It is also 85% higher than it was this time last year.

The post Resimac (ASX:RMC) share price lifts on $104 million profit 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 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 Dubber Corp Ltd (ASX: DUB) share price is pushing higher on Tuesday following the release of its full year results.

At the time of writing, the call recording technology company’s shares are up 3% to $3.77.

This leaves the Dubber share price trading within a whisker of its record high of $3.83.

Dubber share price rises on stellar recurring revenue growth

• Revenue up 97% year on year to $23.3 million
• Annualised recurring revenue (ARR) jumped 142% to $39 million
• Subscribers up 118% to 420,000
• Loss after tax of $30.7 million
• Cash balance of $32 million (excluding recent $110 million capital raising)

What happened in FY 2021 for Dubber?

For the 12 months ended 30 June, Dubber reported a 97% increase in revenue to $23.3 million and a 142% lift in ARR to $39 million.

This reflects a 118% increase in subscribers to over 420,000, which was driven by a number of trends that are accelerating thanks to the pandemic.

This includes the working from home trend, the expansion of unified communications, the importance of business insights, and service providers actively seeking to provide value added services.

What did management say?

Dubber’s CEO, Steve McGovern, said: “This year has been a landmark year for the Company and is the start of a comprehensive five-year strategy to deliver data services at scale to the world’s most significant voice and video networks.”

“Our goals at the outset of FY21 related to doubling the size of the business, achieving 300,000 subscribers, targeting an ARR of $30m and building on our base of service provider partners to underpin enduring success. The Company has been successful in exceeding these internal aspirations and is realising increased growth across all metrics.”

“FY21 has seen Dubber continue to grow from a disruptor to an established industry leader capable of providing valuable services to a broad demographic of customers from small businesses to large global enterprises and governments,” he added.

What’s next for Dubber in FY 2022?

While no guidance was provided for the year ahead, management appears confident its growth will continue.

Mr McGovern commented: “In FY22, the Company has an opportunity to capitalise on its improved position with an incredibly strong balance sheet to accelerate growth organically through its established service provider relationships and via targeted M&A. We expect to deliver strong growth in all of our key metrics but particularly ARR, which will be driven through further user expansion, global banking customer wins and continued penetration of the significant immediate addressable market we have in front of us.”

Supporting its growth in FY 2022 will be its agreement with global technology giant Cisco. That agreement sees Dubber become a standard feature of every subscription for Cisco’s Global cloud telephony platforms – Webex Calling and UCM Cloud. It also has similarly promising deals in place with Microsoft Teams and Zoom.

The Dubber share price has more than doubled in 2021.

The post Dubber (ASX:DUB) share price charges higher after doubling revenue in FY21 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 Dubber Corporation. The Motley Fool Australia owns shares of and has recommended Dubber Corporation. 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 BlueBet Holdings Ltd (ASX: BBT) share price is rebounding strongly on Tuesday. It comes as the Aussie sports betting group reported results for the year ended 30 June 2021 (FY21) to the market this morning.

BlueBet share price jumps on EBITDA boost

BlueBet provided its latest financial and operational update including the following key points:

• Revenue up 83.3% on the prior corresponding period (pcp) to $344.7 million
• Wagering revenue (net win) up 92.5% on pcp to $35.6 million
• Active customers up 45.7% on pcp to 32,472
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 48.4% on pcp to $7.5 million
• Net profit after tax down 33.6% on pcp to $3.0 million

At the time of writing, the BlueBet share price is up 1.2% to $2.54, having slipped 3.5% lower on Monday.

What happened for BlueBet in FY21?

BlueBet’s FY21 results exceeded its prospectus forecasts with strong growth in revenue, earnings and active customers. The wagering group increased market share in Australia and pushed into the lucrative US sports betting market.

BlueBet pointed to increased marketing efforts and headcount as helping boost revenue and underlying EBITDA in a strong year of growth.

Subsequent to 30 June, BlueBet’s US subsidiary and its partner unsuccessfully applied for one of 10 licences to operate an online sportsbook in Arizona, USA. News that it failed to secure the licence sent the BlueBet share price plummeting lower in yesterday’s trade.

What did management say?

BlueBet CEO Bill Richmond was positive about the result:

FY21 has been an outstanding year for BlueBet. We have seen a massive increase in our Active Customers this year and our bet count almost doubled.

This has flowed through to exceptionally strong and profitable financial results which have exceeded Prospectus forecasts. We are seeing this strong momentum continuing into FY22.

On growth prospects for the current financial year, Richmond added:

We are already executing on our US growth strategy and have secured our initial skin agreement in Iowa, where we expect to start taking bets in early 2022. We expect to secure additional licences in other US states in FY22 and grow the business strongly there.

What’s next for BlueBet and its share price?

The Arizona licence rejection is a blow for the Aussie sports betting company but it did secure the Iowa agreement. However, BlueBet said it enters the current financial year with strong momentum across key markets and an eye on further US licences to maintain growth.

The BlueBet share price is up 122% in 2021 with a market capitalisation in excess of $500 million.

The post BlueBet (ASX:BBT) share price jumps on EBITDA boost 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 recommended BlueBet Holdings 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 Yojee Ltd (ASX: YOJ) share price has sunk into the red in the opening of trade on Tuesday after the software and logistics company reported its FY21 earnings.

Yojee shares are now changing hands at 23.5 cents apiece, a 2.08% drop from the open.

Let’s investigate further.

Yojee share price sinks following wider net loss after tax

• Revenue from ordinary activities grew 63% year-on-year to $1.06 million from $654,000
• Software revenue increased from $435,000 to more than $860,000
• Network revenue decreased to $203,240 from the year before
• Loss after tax attributable to members increased 83% from the year prior to $11.3 million
• Cash and cash equivalents increased more than 300% to $18.4 million in FY21
• Net cash flows from financing increased to $19.5 million, due to $20 million in proceeds from issue of securities at 20 cents per share
• Loss on earnings per share (EPS) increased from 68 cents to $1.06 per share.

What happened in FY21 for Yojee?

In a potential positive for the Yojee share price, the company increased its revenue from ordinary activities by almost 63% to $1.06 million in FY21.

The bulk of this revenue came from an increase in the company’s software revenue, which almost doubled from $435,000 to $860,000 over the year. Network revenue came in quite flat from FY20 at just over $200,000.

This came through the income statement and increased the net loss after tax by 83% from the year prior, from $6.2 million to $11.3 million.

As a result, the total comprehensive loss for FY21 came in at $10.3 million, a significant increase from the $5.9 recognised last year.

Earnings per share also came in behind FY20, recording a loss per share of $1.06 versus 68 cents a year ago.

Despite these headwinds, Yojee left FY21 with $18.4 million in cash, an increase of more than 300% from the year prior.

When analysing its financial statements, we see net cash flows from financing increased to $19.5 million, and this was from the issuance of securities throughout the year which raised an additional $20 million for Yojee. This explains the large increase in Yojee’s cash balance from last year to now.

Yojee also stated it has 4 “global enterprise leaders” contracted as of FY21, and more than 100 “leading trucking companies” in its network.

What did management say?

Speaking on the year that was, Yojee managing director Ed Clarke said:

Our SaaS [software as a service] company has experienced incredible growth and monumental agreements over the last year. Solving the biggest problems and making our customers delighted is at the heart of Yojee’s success, which we believe will continue to be our competitive advantage in the future and help us grow even faster.

Touching on future technology plans for the business, Clarke added:

A suite of platform enhancements is currently being beta tested with plans for wider rollout throughout 2022 giving us additional revenue streams from new and existing customers. In addition, discussions are well advanced to add to our enterprise customer base as well as growth in the SME space.

What’s next for Yojee and its share price?

Yojee’s management is “budgeting (revenue) to continue to grow at double-digit rates throughout 2022”.

The company also has a “suite of platform enhancements” that are currently in beta testing and set for rollout over the coming year.

From the upgrades, Yojee expects to see additional revenue streams from existing customers. It has also been active in adding to its “enterprise customers base as well as growth in the SME space”.

Given the uncertainties still surrounding the Covid-19 pandemic, management did not provide specific revenue or earnings guidance in its FY21 report.

The Yojee share price has climbed 20% this year to date and has gained 33% over the last 12 months. These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

The post Yojee (ASX:YOJ) share price slides despite 63% revenue growth 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. 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 Cettire Ltd (ASX: CTT) share price is in the spotlight this morning after releasing its full-year results for the 2021 financial year.

At the time of writing, shares in the online luxury goods retailer are down more than 3%.

Cettire share price climbs after beating forecasts

• Gross revenue of $124.5 million, up 333% year-over-year on a constant currency basis
• Sales revenue of $92.4 million, up 304% year-over-over on a constant currency basis
• Statutory net profit after tax swung from $1.53 million to a loss of $251,000
• Active customers increased 285% to 114,830
• Operating cash flow of $12.7 million, up 131% on FY20
• Cash position at the end of June 2021 of $47.1 million with no debt

What happened in FY21 for Cettire

For the 12 months ended 30 June, Cettire achieved an exceptional increase of 304% in sales revenue to $92.4 million. This result exceeded the company’s previous forecasts by 32%. The exceptional performance was driven by considerable increases in active customers and product order numbers.

Furthermore, orders increased 353% to more than 170,000 during the financial period. An expansion in product range and broadening of its supplier base helped Cettire attract new sales.

On top of this, the luxury goods reseller made headway on direct brand partnerships during the tail end of the financial year. This followed critiques reported in The Australian Financial Review regarding the company’s relationship with third-party suppliers and wholesalers. At the end of the period, Cettire’s available products exceeded 200,000 across 1,700 brands.

Additionally, the company plans on further accelerating its marketing spend to drive greater traffic and customer conversion. At the same time, Cettire will selectively explore new market adjacencies to expand upon its addressable market. If successful in expanding its total addressable market, this could bode well for the Cettire share price.

What did management say?

Commenting on the result, Cettire founder and CEO Dean Mintz said:

It has been an exceptional year for Cettire, with the Company rapidly growing. I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers.

The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform.

Additionally, with respect to the company’s performance so far in FY22, Mr Mintz stated:

Our growth trajectory has continued in FY22, with a strong July. Our number one priority is to maximise the global revenue potential of the Company by taking a long term view. We will continue to invest in opportunities aligned to our strategy, with a near term focus on customer acquisition, technology enhancements and building organisational capability.

What’s next for Cettire?

In the year ahead, Cettire will be continuing to invest in its proprietary technology platform and enhance its supply relationships. In addition, the company will be working on a mobile app and further investments in AI and brand awareness to gain additional revenue growth.

Already in July FY22, Cettire has experienced a 181% lift in unaudited gross revenue compared to the prior corresponding period. However, the company refrained from providing specific guidance.

Cettire share price snapshot

The Cettire share price has rewarded shareholders handsomely since its initial public offering (IPO) less than a year ago. Since listing, shares have soared 406% — in line with its meteoric revenue growth. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) added 12.6% during the same timeframe.

The post Cettire (ASX:CTT) share price slumps despite revenue quadrupling 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 Cettire Limited. The Motley Fool Australia has recommended Cettire 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 Pointerra Ltd (ASX: 3DP) share price is trading 5.33% higher at 39.5 cents on Tuesday after the company released its preliminary FY21 results.

Pointerra share price higher on triple-digit top-line growth

Here are the highlights of the geospatial data tech company’s prelim results:

• Annual contract value (ACV) up 241% to US$9.8 million
• Customer revenues rose 224% to A$3.98 million
• Customer cash receipts increased 121% to A$4.07 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of A$1.27 million (FY20: $1.83 million loss)
• Cash balance $5.18 million as at 30 July

What happened to Pointerra in FY21?

2021 has proved to be a challenging year for the Pointerra share price, down 24% year-to-date. This follows a bumper performance in 2020 where its shares surged 810% from 5.5 cents to 51 cents.

During the financial year, the company acquired US-based aerial imagery company, Airovant for US$1 million.

The acquisition was described as a “step-change in the dimension and scale of Pointerra’s US operations in the important AEC (architecture, engineering and construction), facilities management and energy utilities markets”.

According to the acquisition announcement, Airovant’s annual revenue averaged US$1.4 million over calendar years 2018, 2019 and 2020 with positive cash flow and earnings during this time.

Pointerra’s growth across key market sectors, in addition to Airovant’s contribution to earnings, helped deliver the triple-digit increase across key financial metrics. Pointerra was pleased to highlight that the business is profitable on its current ACV run-rate basis.

During the period, Pointerra delivered a lower underlying EBTIDA loss of A$1.27 million, reflecting scaling customer revenue is outpacing the modest increase in operating expenses.

Pointerra had a cash balance of $5.18 million for the year ended 30 June, boosted by its $2.5 million placement in July 2020 and options exercised during the year.

What’s next for Pointerra?

Pointerra believes it’s well-funded for continued organic growth in the new financial year.

The company continues to roll out its enterprise platform with key US utility customers in July and August, enhanced by additional paid proof of concept projects designed to validate the platform’s capabilities.

Pointerra successfully developed a digital twin solution for tier-1 mining sector customers in Australia and expects to launch the product in the US market. The company expects mining sector ACV spend to continue to grow in FY22.

Despite a solid outlook for FY22, the Pointerra share price is currently hanging around 9-month lows.

The post Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21 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. owns shares of and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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 Harvey Norman Holdings Limited (ASX: HVN) share price is trading lower on Tuesday following the release of its full year results.

At the time of writing, the retail giant’s shares are down 5% to $5.25.

Harvey Norman share price tumbles on FY 2021 results

• Total aggregated sales up 15.3% to $9,491 million
• Comparable store sales up 13.9% year on year
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 54.2% to $1,457 million
• Profit after tax excluding property revaluations up 63% to record $743.1 million
• Fully franked total dividend up 45.8% to 35 cents per share

What happened in FY 2021 for Harvey Norman?

For the 12 months ended 30 June, Harvey Norman reported a 15.3% increase in sales to $9,491 million and a 63% jump in profit after tax to $743.1 million.

There were a number of drivers of the company’s growth in FY 2021. Management notes that the home-focused Australian consumer has continued to provide an environment of growth. This has underpinned strong growth in technology with increased demand for Smart Phones, Gaming Laptops and PCs that provide power and performance.

In addition, with Australian homes continuing to move quickly to being digitally connected, driven by remote working and learning, categories such as Connected Home, Mobile Technology and Super Wi-Fi have surged.

There was also a strong uptake of the Federal Government’s Homebuilder grants program and the renovations that have followed has led to strong demand for kitchen products.

And with more entertaining happening at home, Harvey Norman experienced strong sales in audio visual with higher demand for big screen, in-home experiences. Similarly, outdoor entertainment categories have performed well, as have furniture and bedding categories, and home office categories.

Harvey Norman’s strong form allowed the company to declare a fully franked final dividend of 15 cents per share. This brought it full year dividend to 35 cents per share, which is an increase of 45.8% year on year.

What did management say?

Harvey Norman’s Chairman, Gerry Harvey, said: “The solid results delivered in the 2021 financial year is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy, and its ability to adapt and transition to the challenging retail landscape and continue to navigate the uncertainties presented by COVID-19.”

“The results achieved this year demonstrates that customers continue to engage strongly with our brands and feel comfortable and safe shopping in our expansive, spacious overseas company-owned and Australian franchised complexes, with easy direct access to large showrooms and warehouses, or the various flexible ‘Contactless Click & Collect’ and ‘Contactless Delivery’ options on offer. We have continued to invest in technology, digital transformation and infrastructure to enable our overseas company-owned stores and Australian franchisees to enhance their ‘Shop Safe’ capabilities and bolster their customer-centric strategies,” he concluded.

What’s next for Harvey Norman in FY 2022?

The weakness in the Harvey Norman share price today appears to have been driven by its soft start to FY 2022.

Management revealed that rolling lockdowns in most States and Territories have affected sales in July and August. However, it expects spending to recover quickly when lockdown restrictions ease.

According to the update, Australian franchisee sales between 1 July to 26 August are down 19.2% compared to the prior corresponding period. Sales are also down in the double digits in New Zealand and Malaysia for the same reasons.

The Harvey Norman share price is up 12% in 2021.

The post Harvey Norman (ASX:HVN) share price down 5% despite 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 recommended Harvey Norman Holdings 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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