Tag: Motley Fool

The Adore Beauty Group Ltd (ASX: ABY) share price is rebounding on Friday morning.

In early trade, the online beauty retailer’s shares are up over 7% to $3.98.

This follows a 19% decline by the Adore Beauty share price on Thursday.

Why did the Adore Beauty share price crash lower yesterday?

The Adore Beauty share price was sold off yesterday following the release of a third quarter update.

Although the ecommerce company revealed that it expects to report revenue growth of 43% to 47% in FY 2021, this fell a touch short of expectations.

Also weighing particularly heavily on its shares was commentary around its active customers. Adore Beauty revealed that active customers at the end of the third quarter were 687,000.

While this is a 69% increase on the prior corresponding period, it is down from 777,000 active customers at the end of the first half.

However, this metric is slightly misleading and the company has sought to add more colour to it this morning.

What did Adore Beauty say?

This morning Adore Beauty clarified that the 687,000 active customers at the end of the third quarter was reflective of a nine-month period, rather than a 12-month period. Hence the discrepancy between these numbers and those reported with its half year results.

It explained: “As stated in the Trading Update dated 6 May 2021, Adore Beauty had 687,000 active customers at the end of Q3 FY21. This number is reflective of a 9 month period, rather than a 12 month period. The relevant PCP comparison is 406,000 active customers over the 9 months to 31 March 2020. Therefore, there was a 69% increase when comparing 9 months to 31 March 2021, with the same nine-month period in the previous financial year.”

However, what does remain unclear, is why the Adore Beauty decided to represent its numbers in this way.

More reading

• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Adore Beauty (ASX:ABY) share price plunges 10% on quarterly update
• 3 stellar ASX growth shares for investors in May
• The Credit Clear (ASX:CCR) share price lower on third quarter update
• Why the Adore Beauty (ASX:ABY) share price is charging higher today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. 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.

The post Why the Adore Beauty (ASX:ABY) share price is rebounding 7% today appeared first on The Motley Fool Australia.

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The REA Group Limited (ASX: REA) share price will be on watch after the release of the company’s highly anticipated third-quarter update. At the market’s close on Thursday, the REA share price was trading at $153.84, down 1.23% for the day.

So, will the company’s results live up to investor expectations against the backdrop of a roaring property market? Let’s take a look.

Why the REA share price is in focus

The REA share price surged 12% in May into near-record territory, perhaps in anticipation of a strong quarterly result. 

It’s been a tough quarterly reporting season with many of the so-called ‘COVID-19 winners’ facing tough comparables against supercharged FY20 earnings. 

From ASX e-commerce shares such as Kogan.com Ltd (ASX: KGN) to healthcare shares such as ResMed Inc (ASX: RMD), seemingly positive results have resulted in sharp, unforgiving selloffs by investors. 

Third-quarter highlights 

REA Group delivered solid third-quarter results, with revenue increasing by 8% (excluding acquisitions) to $225.6 million. Meanwhile, earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 13% to $123.3 million. 

From a year-to-date perspective, revenues edged 1% higher on the prior corresponding period to $655 million, while EBITDA was 10% higher to $415.1 million. 

REA reported that the Australian residential property market showed strong signs of recovery during the quarter, particularly in the months of February and March. The update highlighted a 2% national decline in residential listings in 1Q21, before a respective 10% and 8% increase in the second and third quarters. 

Roaring property prices and heightened buyer interest has seen a surge in average monthly website visits. Realestate.com.au recorded 130.7 million average monthly visits, up 47% year on year, with a record 137.3 million visits in March. The platform was also seeing growth in the uptake of the app, with total app downloads of 10.8 million, up 10% year on year. 

Elsewhere, the company’s commercial and developer revenue increased due to the continued growth in new project commencements, up 14% for the quarter. 

Financial services revenues declined due to a reduction in partnership revenue, with its current National Australia Bank Ltd (ASX: NAB) agreement performance payments reaching maturity in September 2020. 

The company’s Asia business saw a decrease in revenue for the quarter, as Malaysia was heavily impacted by mobility restrictions as a result of the pandemic. 

In December, REA took a punt on the emerging Indian real estate sector with a substantial stake in Elara. In line with expectations, the acquisition delivered $9.5 million in revenue and an EBITDA loss of $7.3 million. The company anticipates Elara delivering 2H21 revenues of $12 to $17 million and an EBITDA loss of $15 to $20 million. However, the worsening COVID situation in India could see weaker than anticipated results. 

Management commentary 

REA Group chief executive officer Owen Wilson commented:

Australia’s property market is in full flight, with this positive momentum contributing to strong listings growth for the quarter. Once again, realestate.com.au set new audience records and delivered over 3 million buyer enquiries per month, an increase of 82% for the quarter.

Current trading 

The strength of the residential property market carried over into April, supported by record-low interest rates and improving consumer confidence. REA’s current trading highlights a 98% year-on-year increase in national residential listings, driven by a respective 127% and 116% increase in Melbourne and Sydney. 

Despite the strong year-on-year increase, the company flagged that: 

While the market dynamics are strong, these growth rates are exaggerated by the severe COVID related declines experienced in April 2020. Listings in that month were down 33% compared to April 2019.

REA share price snapshot

It will be interesting to see how the REA share price performs today and whether the company’s relatively strong current trading results are tempered by its weaker figures from last year.  

REA shares are currently up by just 3.35% in 2021 however they have gained more than 74% over the past year. Based on the current REA share price, the company has a market capitalisation of around $20 billion.

More reading

• 2 stellar ASX growth shares rated as buys
• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• 2 high quality blue chip ASX 200 shares rated as buys
• REA (ASX:REA) share price eyes new record highs after running 10% in April
• These ASX 200 shares are tracking the Aussie economy higher in 2021

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd, REA Group Limited, and ResMed Inc. 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 Webjet Limited (ASX: WEB) share price has been a poor performer this week.

Since the start of the week, the online travel agent’s shares have fallen a disappointing 11%.

Why is the Webjet share price sinking this week?

The decline in the Webjet share price appears to have been driven by the release of an update out of one of its competitors.

Earlier this week, Flight Centre Travel Group Ltd (ASX: FLT) released a trading update and revealed that it expects to post a second half loss in line with the one it recorded during the first half of ~$250 million. This was materially more than the market was expecting.

In addition to this, concerns about rising COVID-19 cases across the world appears to be weighing on sentiment in the travel sector.

Is this a buying opportunity?

According to a note out of Goldman Sachs, this could be a buying opportunity for investors.

This morning the broker retained its buy rating and $7.00 price target on the company’s shares.

Based on the current Webjet share price, this represents potential upside of 57% over the next 12 months.

What did the broker say?

Goldman commented: “Since we initiated on FLT and WEB in March, there has been 33.7mn new cases of COVID reported across the world driven by a new wave in India. However, on the flipside, vaccination progress has been encouraging, especially in the USA and UK with an estimated 63% and 61% of the population achieving immunity (vaccination or prior infection) as of early May 2021.”

“Overall, the travel recovery is tracking in line with expectations albeit with interim declines (Feb) and strong recoveries (Mar). The December 2019 indexed activity tracker, based on monthly IATA data, for domestic Australian airline travel suggests that activity has improved to 53.6 in March 2021 vs. 35.9 in Dec 2020. We expect activity in April to have been in line with March but recovery signs leading into the Northern Hemisphere summer period, a key holiday travel period, looks encouraging. We make no changes to our travel activity forecasts for FLT and WEB.”

In light of this, the broker continues to believe that Webjet is well-placed to return to growth in the not so distant future as the travel market recovers.

More reading

• To sell or not to sell? 3 brokers weigh in on Webjet (ASX: WEB) shares
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• Are ASX travel shares about to go through a big recovery?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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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.

Apple (NASDAQ: AAPL) has been in the news a lot lately. The company announced second-quarter earnings last week, crushing Wall Street’s expectations across the board. And this came on the heels of its spring launch event, where Apple unveiled a range of new and updated products. Add in the iOS update with new privacy controls that have some companies complaining. Then there’s the global semiconductor shortage, which threatens several industries, including consumer electronics.

Given the whirlwind of headlines surfacing daily, it’s easy to lose track of what actually matters. To simplify the situation, here are three things investors need to know about Apple right now.

1. Apple’s products are in high demand

Product revenue surged 62% year over year in the second quarter, driven by strong demand across the iPhone, iPad, and Mac product lines. In fact, Mac computers set an all-time revenue record. During the earnings call CEO Tim Cook said: “The last three quarters for Mac have been its best three quarters ever.”

Cook attributed this success to the M1 chip, Apple’s custom-built silicon introduced last year to replace Intel processors in the Mac Mini and MacBooks. Notably, the ARM-based M1 delivers 3.5 times faster CPU performance and twice the power efficiency of previous Mac generations.

Moreover, according to JPMorgan analyst Samik Chatterjee, the M1 chip could also reduce the cost of production by $75 per unit. In other words, Apple’s silicon delivers a better experience for consumers, while reducing expenses for the company.

Going forward, that dynamic could make Apple more profitable. Some evidence of that can be found in the fact that product gross margin jumped 100 basis points in the second quarter, reaching 36.1%. But that figure may get even bigger in the coming years. That’s because Apple recently debuted a new lineup of M1-powered iMacs and a 5G-enabled iPad Pro (also with an M1 chip) at its spring launch event in late April.

Investors should pay attention to the gross margin on Apple’s hardware in the coming quarters to see if these new devices drive cost efficiencies.

2. Apple’s services business is gaining momentum

Apple’s services business also delivered all-time record results in Q2, as year-over-year sales growth accelerated to 27%. While that figure isn’t as dramatic as the 62% uptick in product sales, it still bodes well for the future.

Services revenue comes at a much higher gross margin — roughly 70% in the last quarter. In other words, as Apple services gain traction — think the App Store, Apple TV+, Apple News+, Apple Arcade, and Apple Music — the company will become more profitable as a whole.

To drive growth, Apple is continuing to expand its offering. For instance, it just added more than 30 new games to Apple Arcade, bringing the total to over 180. It also updated Apple Fitness+, bringing new workouts and trainers to the platform. 

Going forward, Apple plans to continue investing in its services business. It gives the company another way to monetize its global installed base of over 1.65 billion devices, and the revenue is much less cyclical than product sales. Investors should pay attention to the company’s success here.

3. The semiconductor shortage may be an opportunity

Over the last year, the COVID-19 pandemic sparked demand for PCs and smartphones as consumers transitioned to remote work. That, combined with residual effects of the U.S-China trade war, has triggered a global semiconductor shortage. Today demand far exceeds supply, and experts think the situation may take two years to resolve.

Samsung recently warned investors that mobile sales and profits are likely to fall in the next quarter, citing semiconductor supply as one of the drivers behind that trend. Apple also referenced the situation, noting that supply constraints would have a $3 billion-to-$4 billion impact on revenue next quarter. However, Apple CFO Luca Maestri said this headwind would primarily affect the iPad and Mac.

In other words, Apple iPhones may fare better than Samsung smartphones in the near term. How is that possible?

Apple is famous for its supply chain management. The company’s Supplier Code of Conduct details the high standards suppliers must meet, addressing everything from ethics to environmental impact. As a result, research firm Gartner has ranked Apple’s supply chain as the best in the world for the last seven years.

If Apple is able to use that advantage to deliver strong iPhone sales next quarter, it could help the California company take market share from Samsung — as it did in 2020.

Smartphone Market Share	2019	2020
Apple	14%	16%
Samsung	22%	20%

Data source: Canalys.

Investors should pay attention to this situation as it unfolds. Management will almost certainly provide commentary on the supply shortage at the end of the next quarter.

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

More reading

• This ASX tech ETF might be in the buy zone today. Here’s why
• Here are the US shares that ASX investors were buying last week
• A foldable iPhone is coming from Apple in 2023, analyst says
• What Warren Buffett learned from investing during a global pandemic
• ASX 200 Weekly Wrap: Shares have average week but a great month

Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Gartner and Intel and recommends the following options: long January 2023 $57 calls on Intel, short March 2023 $130 calls on Apple, long March 2023 $120 calls on Apple, and short January 2023 $57 puts on Intel. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Apple just crushed earnings: 3 things investors need to know appeared first on The Motley Fool Australia.

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

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Appen Ltd (ASX: APX) shares have been unloved over the last 9 months, and yesterday was no exception. Following the release of presentation materials for the Macquarie Australia Conference, shares in the artificial intelligence (AI) dataset annotation company hurled themselves downwards.

By the end of the session, the Appen share price had fallen 21.1% to $11.63. So, what is all the commotion triggering Appen to collapse to a multi-year low?

What’s ‘Appening’ to the former ASX tech darling?

Data annotation getting smarter

A concern that has been floating around the company for some time is disruption. This is odd, considering Appen is a tech company operating in the AI space.

While Appen does have its own technology that increases the efficiency of data labelling, it relies on a 1 million-strong crowd of contractors. These people manually annotate the training data sold to Appen’s clients. When you think about it, this sounds somewhat manually intensive for a tech company.

Appen has dismissed concerns of its manual annotation becoming outdated over the years. But with growth flatlining, has the disruption already begun?

One space that Appen provides its services to is the evolving autonomous driving industry. Training data is used to improve the AI required to navigate vehicles with minimal human intervention.

However, Tesla Inc (NASDAQ: TSLA) has been working on its “Dojo” supercomputer for streamlining this process. Still in development, Dojo will be optimised to train neural nets, and Elon Musk has stated they will make the technology available to other companies.

Dojo, if pulled off, could have the potential to substantially exceed the speed and accuracy of current tech-assisted human annotation. That kind of disruption is one possible reason investors are appearing less enthusiastic about Appen’s future potential.

Too many eggs in one basket

Another aspect that poses a risk for Appen is its customer concentration. It has long been rumoured that a substantial portion of revenue is derived from Google and Microsoft. Whilst this hasn’t been formally acknowledged by Appen, broadening its customer base is a focus for the company.

Both Google and Microsoft are tech titans themselves. While these companies have a major data thirst now, there’s no telling when that might disappear. If either of them was to innovate beyond the need for manually annotated data, that would be a heavy blow to Appen’s revenue.

Having said that, much of this is anecdotal – operating in a theorised future of ‘what ifs’ and ‘could bes’ – but as the business’ growth slows, these are likely the front-of-mind concerns for many investors. And given the 60% decline in the Appen share price over the past year, the edginess is unsurprising.

More reading

• ASX 200 drops, Nearmap plunges, Appen declines
• Here’s why the Appen (ASX:APX) share price is down 21% today
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Mitchell Lawler owns shares of Appen Ltd, Macquarie Group Limited, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 Macquarie Group Ltd (ASX: MQG) share price is in the spotlight as it unveiled an increase in both profit and dividends this morning.

The investment bank even hinted of a potential capital return down the track as it announced a 10% uplift in FY21 net profit to $3.02 billion and boosted its final dividend by 86.1% to $3.35 a share.

What will also please supporters is the fact that the gains accelerated in the second half of the financial year.

Key highlights in Macquarie’s profit results

Macquarie reported that profit from the six months to end of March 2021 made up two thirds of the full year’s NPAT. This means the second half profit was up 106% over 1HFY21 and 59% over the same time last year.

The group’s market facing business was the standout. The FY21 profit it makes from trading and investments jumped 39% over the previous year to $2.78 billion.

Its steadier annuity-type businesses lagged. The combined net profit contribution from this business dipped 4% year-on-year to $3.31 billion.

Is Macquarie undertaking a capital return this year?

The results could also spark speculation of a capital return as management said its holding excess capital to regulatory requirements.

The group held a cash surplus of $8.8 billion at 31 March 2021, up from $7.1 billion at the same time in 2020.

Hints of a capital return could be enough to offset any potential disappointment that Macquarie was vague about its outlook.

Uncertain outlook to debt confidence

The group really didn’t provide much clues on what lies, ahead apart from pointing out that this is a difficult environment to be making forecasts.

Some of the highlighted uncertainties include the speed of recovery from COVID-19, volatile market conditions, possible tax and regulatory changes and exchange rate fluctuations.

I wish they would tell us something we didn’t already know!

Erring on side of caution?

Shareholders will be hoping that this is Wikramanayake attempt to follow Macquarie’s tradition of under promising and over delivering.

“Macquarie remains well-positioned to deliver superior performance in the medium term,” said Macquarie’s CEO Shemara Wikramanayake.

“This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

Macquarie is the last of the ASX banks to post its results during this bank reporting season. Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) also reported profit results this month.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• Blue chip ASX 200 shares breaking out into 52-week highs

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Macquarie Group Limited, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Macquarie (ASX:MQG) share price on watch after posting $3bn profit and 86% dividend increase appeared first on The Motley Fool Australia.

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The Macquarie Group Ltd (ASX: MQG) share price is in the spotlight as it unveiled an increase in both profit and dividends this morning.

The investment bank even hinted of a potential capital return down the track as it announced a 10% uplift in FY21 net profit to $3.02 billion and boosted its final dividend by 86.1% to $3.35 a share.

What will also please supporters is the fact that the gains accelerated in the second half of the financial year.

Key highlights in Macquarie’s profit results

Macquarie reported that profit from the six months to end of March 2021 made up two thirds of the full year’s NPAT. This means the second half profit was up 106% over 1HFY21 and 59% over the same time last year.

The group’s market facing business was the standout. The FY21 profit it makes from trading and investments jumped 39% over the previous year to $2.78 billion.

Its steadier annuity-type businesses lagged. The combined net profit contribution from this business dipped 4% year-on-year to $3.31 billion.

Is Macquarie undertaking a capital return this year?

The results could also spark speculation of a capital return as management said its holding excess capital to regulatory requirements.

The group held a cash surplus of $8.8 billion at 31 March 2021, up from $7.1 billion at the same time in 2020.

Hints of a capital return could be enough to offset any potential disappointment that Macquarie was vague about its outlook.

Uncertain outlook to debt confidence

The group really didn’t provide much clues on what lies, ahead apart from pointing out that this is a difficult environment to be making forecasts.

Some of the highlighted uncertainties include the speed of recovery from COVID-19, volatile market conditions, possible tax and regulatory changes and exchange rate fluctuations.

I wish they would tell us something we didn’t already know!

Erring on side of caution?

Shareholders will be hoping that this is Wikramanayake attempt to follow Macquarie’s tradition of under promising and over delivering.

“Macquarie remains well-positioned to deliver superior performance in the medium term,” said Macquarie’s CEO Shemara Wikramanayake.

“This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

Macquarie is the last of the ASX banks to post its results during this bank reporting season. Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) also reported profit results this month.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• Blue chip ASX 200 shares breaking out into 52-week highs

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Macquarie Group Limited, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie 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 share price of call recording software developer Dubber Corp Ltd (ASX: DUB) has been on an absolute tear recently. Since the beginning of April, shares in the junior tech company have soared over 50%, from $1.77 to $2.67 as at the time of writing – and that’s despite an almost 10% slump on Thursday.

So, what has got the share price skyrocketing?

Company background

First, let’s take a quick look at what Dubber does.

Dubber operates a software-as-a-service (SaaS) business model. This basically means it sells licenses to companies so that they can access and use Dubber’s cloud-based software.

These sorts of business models can be quite attractive to investors (if successful) as they can provide dependable revenue streams in the form of recurring subscription payments from clients.

Many emerging ASX tech companies employ similar models, including Bigtincan Holdings Ltd (ASX: BTH), ELMO Software Ltd (ASX: ELO) and Megaport Ltd (ASX: MP1).

Dubber specialises in call recording software. The technology can help its clients manage and analyse large volumes of calls, which can help with sales optimisation, customer retention, staff training and can even help to ensure companies meet compliance targets.

The software even uses artificial intelligence to measure customer sentiment, providing emotional insights into a company’s performance.

Recent news

What really got the Dubber share price skyrocketing was the news on 14 April that it is set to partner with US-based telecommunications company Zoom Video Communications Inc (NASDAQ: ZM). Businesses will now be able to record their Zoom conversations and use Dubber’s software to analyse these calls.

Zoom became a globally recognised brand during the COVID-19 pandemic, as it has supported companies who have had to adapt to remote working arrangements.

Following this announcement was Dubber’s March 2021 quarterly activities update, in which the company reported strong growth across just about all of its key metrics.

Revenues increased by a whopping 54% quarter on quarter (to $2.3 million), driven by record growth in customer numbers. Annualised recurring revenues from its subscription-based licenses reached $34 million, a jump of $5.6 million (or 20%) over the previous quarter. Dubber also ended the quarter with almost $38 million in cash on its balance sheet.

Commenting on the results, company CEO Steve McGovern stated that, “The company is very well positioned to continue to take advantage of the major shift towards cloud-based and ‘work from anywhere’ communications we are seeing in all geographies.”

What next for the Dubber share price?

The fact that Dubber is quickly growing its customer base and inking deals with internationally recognised telecommunications companies like Zoom seems to be resonating with investors.

However, Dubber is still a junior company and a speculative investment. On Thursday alone its share price slumped almost 10% after one of its major investors (Regal Funds Management) ceased being a substantial holder, showing that the Dubber share price can still be incredibly volatile.

But, for those of you who can stomach those sorts of price swings, Dubber is arguably turning into an exciting ASX tech company. It will be interesting to watch how its share price performs over the next few months.

More reading

• Why Dubber, PointsBet, Starpharma, & Westpac shares are storming higher
• Dubber (ASX:DUB) share price surges 16% on triple-digit growth
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Why the Dubber (ASX:DUB) share price just smashed its all-time high
• Westpac (ASX:WBC) and these ASX shares have just hit 52-week highs

Rhys Brock owns shares of BIGTINCAN FPO, Dubber, Elmo Software, and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has recommended BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. 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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When I wrote on Wednesday about being wrong, I was pleasantly surprised by the response.

Most of you empathised with me getting my Challenger Ltd (ASX: CGF) recommendation wrong.

One of you — no names, no pack drill — decided to also bring up my Domino’s Pizza Enterprises Ltd (ASX: DMP) stuff-up. 

I choose to believe it was in sympathetic jest!

Still, the responses reminded me of something important: we’re all in this together.

Yes, we’re all trying to ‘beat the market’, and in that sense, we’re trying to beat each other, but the reality is that you and I — the humble individual investor — will always be in the minority in this caper.

So there’s no reason we can’t all beat the big guys at their own game.

Because that’s the other side of the ‘being wrong’ bit.

Thus far, at Motley Fool Share Advisor — and as we find ourselves only 6 months away from our 10th birthday — we’re beating the market.

Despite the mistakes, (negative) surprises, and disappointments, the average Share Advisor recommendation has a higher return than if we’d invested in the All Ordinaries Index (ASX: XAO) on that date, instead. (Both including dividends, by the way, and excluding any fees you’d pay for an ETF that tracked the index.)

Now, I make that point not just to rescue my ego (though we’re all human), but to put my mistake in context.

Because I want to show you that mistakes, far from defining an investor, should be accepted as one of the costs of investing in the first place.

Oh sure, you can buy an index-tracking ETF, get the market return (less a little in fees) and go fishing, shopping, back to work, or whatever else you want to fill your time with.

Indeed, many people should do just that.

But I think it’s possible to beat the market if you have the time, interest, support and stomach for volatility.

Indeed, I think that’s what Share Advisor has shown. And most other Motley Fool services.

Now, past performance is no guarantee. I’m the first to say that (and have done so regularly).

But I think it’s important to remember that we’ve done it despite making some mistakes, having bad luck and everything in between.

Not in the absence of those things.

Despite them.

We’ve had big winners. Smaller winners. And big and small losers.

No sugar-coating it.

To use an imperfect analogy, a golf tournament isn’t decided on the number of birdies. Or bogeys.

But, instead, by the sum total of the strokes taken over 72 holes.

A football match isn’t determined by the number of line breaks. Or missed tackles. 

But, instead, by the net difference of points scored and points conceded.

You don’t win the game by making no mistakes.

You win it by making fewer than the opposition and scoring more points than them.

Perfection — or at least continuous improvement — might be the goal, but it’s not the prerequisite for success.

Thing is, those analogies are imperfect.

A ‘winning’ hole of a birdie and a ‘losing’ hole of a bogey are symmetrical: -1 and +1 respectively.

A line break might result in a 4 point try, and a missed tackle might cost you a 4 point try.

But if you invest well, your losers can only cost you 100%. That’s pretty tough to take.

But your winners? They can gain more. A lot more.

You know the examples: Warren Buffett’s long term performance at Berkshire Hathaway. Amazon’s stunning success over more than two decades (I own shares in both… unfortunately I haven’t had either since the beginning!).

You could have bought 31 companies — Amazon and 30 others that subsequently went broke — on the day of Amazon’s IPO, and you’d still have made a fortune.

Now, Amazon is clearly an outlier. You won’t see many Amazons in an investing lifetime.

But there are lots of long-term 2- 5- and 8-baggers on the market.

And the good news is that the longer you hold quality companies, the greater the odds of achieving those sorts of results.

Woolworths Group Ltd (ASX: WOW), today selling for over $39, originally listed at under $3. And that’s not including the dividends paid in the interim.

Only this morning, I noticed my Berkshire Hathaway shares had tripled (on average) since I bought them.

That’s not hypergrowth. And helped by me buying some during the depths of the GFC more than a decade ago.

But it’s an example of the power of long term compounding. And buying quality.

So, thanks to those of you who empathised with my recent mea culpa.

I really appreciate it.

The bad news is that I’ll make more.

The good news is that as long as I can continue to find companies that more than make up for those mistakes, they won’t be fatal… and the mistakes will hopefully be the exceptions that prove the rule.

Fool on!

More reading

• 2 fantastic blue chip ASX 200 shares rated as buys
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• ASX 200 Weekly Wrap: Shares have average week but a great month
• These were the worst performing ASX 200 shares in April

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Phillips owns shares of Amazon and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Berkshire Hathaway (B shares) and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Amazon, Berkshire Hathaway (B shares), and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Wrong… but still right! appeared first on The Motley Fool Australia.

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The Tabcorp Holdings Limited (ASX: TAH) share price will be one to watch closely on Friday morning. This follows the gambling company’s announcement after market close yesterday of a revised takeover offer.

The Tabcorp share price was trading at $5.01 at Thursday’s closing bell after edging 0.2% higher for the day.

Details of the revised proposal

Tabcorp shares will be in focus this morning after the company revealed it has received an improved proposal.

According to its release, Apollo Management has put a revised offer on the table to acquire Tabcorp’s Wagering & Media and Gaming Services businesses.

Headquartered in New York, Apollo Management is an international private equity firm that manages capital for hundreds of fund investors. The company has offices in dozens of countries looking after pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices.

The revised unsolicited, non-binding and indicative proposal matches a prior bid by United Kingdom sports betting and gambling company Entain plc (LON: ENT).

Both companies have tabled an offer of $3.5 billion for Tabcorp’s Wagering & Media business. However, Apollo Management has put forward a further offer to also acquire Tabcorp’s Gaming Services assets for a combined value of $4 billion.

The revised proposal from Apollo Management is subject to a number of conditions. These include due diligence, finance arrangements, receipt of all regulatory approvals (including ACCC and FIRB), and third-party consents.

Tabcorp management noted that it has not yet decided on the revised proposal and will assess it in line with its strategic review.

The board is currently considering whether to sell its Wagering & Media business to a third party or demerge the asset from its lotteries arm.

How has the Tabcorp share price performed lately?

It has been a good 12 months for Tabcorp shareholders with the company’s share price up over 60%. Year-to-date performance has also been solid, with the Tabcorp share price posting gains of around 28%. It’s worth noting that Tabcorp shares reached a multi-year high of $5.06 on Wednesday.

Based on the current share price, Tabcorp commands a market capitalisation of about $11.1 billion, with 2.2 billion shares outstanding.

More reading

• Why Bingo, Life360, Tabcorp, & Vulcan shares are storming higher
• ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance
• Why the Tabcorp (ASX:TAH) share price is in the spotlight
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Aaron Teboneras 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.

The post Why the Tabcorp (ASX:TAH) share price will be in the spotlight today appeared first on The Motley Fool Australia.

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