2 digital economy shares going gangbusters: Aconex Ltd & Freelancer Ltd

Credit: Jason Howie

Two of today’s outstanding performers on the ASX are website operator Freelancer Ltd (ASX: FLN) and software-as-a-service business Aconex Ltd (ASX: ACX).

Both are fast-growing businesses that are relatively new listings on the ASX benefiting from the powerful tailwinds of the digital economy and its global horizons.

Let’s take a look at their half and full-year results (respectively) and see what else investors might like about their outlooks.

Aconex shares are up more than 12% to $4.70 after the company posted earnings from core operations of $7 million (excluding numerous one off costs) on revenues of $55.7 million. The company provides software and cloud services to help businesses in the global construction industry more efficiently manage building projects to save time and costs when completing mind-bogglingly complex construction projects.

The group’s software helps businesses involved in everything from small to medium-sized building projects to infrastructure mega-projects and claims to have helped deliver more than $1 trillion of project value in more than 70 countries.

Aconex offers rapid growth, high margins, and global horizons, unsurprisingly investors are piling into the shares after today’s update and it’s one of the ASX’s hottest up-and-coming junior tech stocks.

Freelancer shares are also up more than 12% to $1.53 today after it posted a full year of positive operating cash flow and more strong growth in revenues and payment volumes. The company has $32 million in cash on its balance sheet, positive cash flows, and high returns on investment in its approach to acquiring new users.

Sitting at the heart of the growing digital economy, Freelancer is growing quickly as it operates a website that trades largely digital services like website design, development, SEO marketing, and mobile application development. Also offering high margins, if able to build competitive advantages and a network effect for its website this business looks to have a long growth horizon into the digital future.

These two businesses aren’t the only ones with big prospects based on the evolving economy however, below are three more identified by The Motley Fool…

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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