Why Sezzle and these ASX tech shares just hit record highs

Sezzle Inc (ASX:SZL) and these ASX tech shares have just hit record highs. Here's why they are flying high in 2020…

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Although the market was out of form last week, it didn't stop some ASX shares from charging higher.

In fact, some even managed to climb to new highs on Friday despite the market weakness.

Three ASX shares that achieved this milestone are listed below. Here's why they are on a high right now:

Damstra Holdings Ltd (ASX: DTC)

The Damstra share price hit a record high of $1.50 on Friday. Investors were buying the integrated workplace management solutions provider's shares last week after it announced a takeover offer for Vault Intelligence Ltd (ASX: VLT). Management notes that the two companies have highly complementary product sets and respective client bases. This is expected to lead to synergies of $4 million within 12 months of the acquisition. And on the top line, the merged group will have pro-forma revenue and other income of $33 million to $35 million.

Sezzle Inc (ASX: SZL)

The Sezzle share price rocketed to a record high of $8.25 last week before being placed into a trading halt. The catalyst for this was the buy now pay later provider's second quarter update. During the quarter, Sezzle's underlying merchant sales came in at US$188 million (A$272.3 million). This represents a 58% quarter on quarter increase and a 349% year on year increase. This strong performance was driven by stellar growth in active customers, active merchants, and repeat usage. Late in the week Sezzle took advantage of its share price rise to undertake a $86.3 million (US$60 million) capital raising. These funds will be used to accelerate its growth strategy and strengthen its balance sheet.

Xero Limited (ASX: XRO)

The Xero share price continued its positive run and hit a record high of $94.31 on Friday. The business and accounting software provider's shares have been in demand with investors this year thanks to its strong FY 2020 result. During the 12 months, Xero posted a 30% increase in operating revenue to NZ$718.2 million and a 29% jump in annualised monthly recurring revenue to NZ$820.6 million. Based on its strong share price form since the release, investors appear confident there will be more of the same over the coming years.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Damstra Holdings Ltd and Xero. The Motley Fool Australia has recommended Damstra Holdings Ltd and Sezzle Inc. 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 Scott Phillips.

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