The tech sector has been one of the top performing sectors on the ASX today. A number of ASX tech shares have surged higher, on the back of full year earnings releases that were well received by the market. Here we look at four of the those companies and highlight why the market responded so positively.
4 ASX tech shares climbing higher today
Vocus Group Ltd (ASX: VOC)
The Vocus Group share price has surged by 8.2% so far today, despite the company reporting a 1% decline in total recurring revenues for FY 2020. The telco provider's retail division was particularly hard hit by the impact of the further migration of legacy fixed line services to the National Broadband Network (NBN). On a positive note however, the company's Network division has been on fire. It recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 10% for the full year. What really appeared to impress the market was Vocus' positive FY 2021 market outlook. Underlying EBITDA is expected to be between $382 million and $397 million, an increase on $360.5 recorded in FY 2020.
Carsales.com Ltd (ASX: CAR)
Leading Australian online automotive classifieds portal Carsales.com reported today adjusted revenue of $423 million during FY 2020 . This was only a modest 1% increase on FY 2019. However, this appeared to be a very solid result considering the sizeable impact of the coronavirus pandemic. Adjusted EBITDA grew by 6% to $218 million, while reported EBITDA declined by 6% to $202 million. The company noted a strong turnaround in demand for vehicles across a number of international markets as lockdown measures have eased. The Carsales share price is up by 3.7% at the time of writing.
Megaport Ltd (ASX: MP1)
The Megaport share price has surged by nearly 6% so far today as the company released an impressive set of financial numbers. The 'network-as-a-service' provider reported total revenues of $58.0 million. This was an increase of 66% over the prior year. The company's monthly recurring revenue (MRR) had reached $5.7 million at the end of June. That was a very strong increase of 57% year on year on an annualised basis. The ASX tech share is now confident that it is well on the path to become EBITDA breakeven in the near future.
WiseTech Global Ltd (ASX: WTC)
The ASX tech share with the strongest share price gains today has been WiseTech Global. The WiseTech share price is up by a whopping 33.7% so far today. The logistics solutions provider reported reasonably strong revenue growth, despite the challenges of the coronavirus pandemic. Total revenue came in at $429.4 million during FY 2020. That was up 23% on the prior year. WiseTech Global has forecast FY 2021 revenue growth to be in the range of 9% to 19%. It also declared a fully franked dividend of 1.60 cents per share.
