The Updater Inc (ASX: UPD) share price has continued its incredible run and in morning trade stormed 13% higher to a new all-time high of $1.47.
While its shares have dropped back a touch now, they are still up almost 12% to $1.45 at the time of writing.
Why have its shares jumped?
This morning the technology company which makes moving easier for the 17 million households that relocate every year in the US announced its new market penetration goal and the acceleration of its business plan.
According to today's update, Updater's new market penetration goal is 35%.
Most recently Updater reported that its estimated market penetration had hit an all-time high of 15.7%. This was a sharp increase from 7% at the same time a year earlier.
Whilst 35% may seem like a lofty goal, I believe the quality of its offering and the popularity of its service puts it in a great position to reach it.
Why is this important?
Once the company reaches this level of market penetration, management believes it will solidify its long-term defensible position as the United States' platform for all facets of relocation.
It would also mean that an estimated 6 million household moves per year would be handled through its platform.
This puts the company in an extremely strong position to profit in my opinion. After all, businesses in the United States spend billions of dollars trying to reach movers each year.
The market will get its first taste of what the platform can do in the near future. In light of its growth in market penetration, Updater has accelerated its business plan and will shortly launch its first vertical.
This morning management advised that it will begin implementing its go-to-market strategy in respect to selling business products and will launch its insurance vertical by the end of 2017.
Should you invest?
I think Updater is one of the best tech shares on the ASX alongside the likes of Altium Limited (ASX: ALU) and GetSwift Ltd (ASX: GSW).
Whilst its shares do trade at a significant premium and should certainly be classed as high risk, I feel there could still be significant upside ahead for them if the company continues to grow its market penetration.
This could make it a good buy and hold investment option in the small-cap space, though I would suggest investors limit an investment to just a small part of their portfolio.
