It hasn't been an easy time for shareholders of late, but finally the Aconex Ltd (ASX: ACX) share price is heading in the right direction following a trading update.
At the time of writing the Aconex share price is up 7% to $4.70, bringing its three-month return to a massive 51%.
Why has it rallied?
Much like the iSentia Group Ltd (ASX: ISD) share price rally yesterday, I think the rally in Aconex's shares today is a bit of a relief rally.
Unfortunately Aconex shareholders have had to endure a number of profit downgrades in the last 12 months. This no doubt had many fearing the worst today when it presented at the Macquarie Group Ltd (ASX: MQG) conference.
For the full-year management reiterated its prior guidance of revenue between $160 million and $165 million and EBITDA between $15 million and $18 million.
Ongoing sales momentum across all regions, reduced uncertainty in the UK, improved conditions in United States, and the stabilisation of oil prices are key factors in its guidance.
Furthermore, management continues to expect revenue growth of at least 20% per annum over the medium to long-term.
Should you invest?
Despite all its troubles I do think that Aconex continues to be a great long-term buy and hold investment.
Its cloud collaboration software continues to grow in popularity and it is not hard to see why. Management is of the belief that its platform can accelerate the pace of product delivery and help build five hospitals for the price of four.
That certainly is a compelling value proposition in my eyes.
So although its shares have rallied strongly in the last few months, I believe investors with a long-term view could still find significant value in holding its shares today.
