The Aconex Ltd (ASX: ACX) share price is rocketing higher again today, up 7.2% to $4.02 per share (although they did hit a high of $4.12 earlier). Today's move tops off an incredible bounce for the ACX share price which has now surged 40% since hitting a low of $2.87 earlier this month.
What Happened?
Aconex is a software-as-a-service (SaaS) business that provides a platform for the global construction industry to assist in document and process management as well as various other communication applications.
Aconex's shares proved incredibly popular among investors from the time of their December 2014 initial public offer (IPO) through to July 2016, over which time they surged as much as 360% to a high of $8.75. However, they have since collapsed as a result of their sky-high valuation and underperformance compared to the market's expectations.
Indeed, the shares suffered a savage selloff just over two weeks ago following a disappointing earnings update. The company downgraded its full-year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) growth to around 21%, down from around 73%, with revenue growth also expected to slow.
Although the shares remain well below their high levels from yester-year – and still well below their price prior to the earnings downgrade in January – investors have clearly regained some faith that the business can still generate strong growth in the future.
