Why the Aspermont (ASX:ASP) share price is rocketing 62% higher

The Aspermont Ltd (ASX: ASP) share price is one of the best standout performers today, rising 62% to 4.7 cents. We take a look into why.

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The Aspermont Ltd (ASX: ASP) share price is one of the best standout performers today, rising 55% to 4.5 cents at the time of writing.

The latest rise in the company's shares comes after Aspermont reported its quarterly update for 2021 to investors last week.

It's worth noting that recent surge in the company's shares marks an all-time record.

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Image source: Getty Images

Quick take on Aspermont

Headquartered in Australia, Aspermont is a leading media services provider to the global mining and resources industry. The company delivers subscription-based content through digital print, conferencing, and event channels.

Aspermont has offices in the United Kingdom, Australia, Brazil, North America, and the Philippines.

Key highlights of the Aspermont Q1 result

The Aspermont share price is on the move as investors are fighting to get a hold of its shares.

At the end of the December period, Aspermont delivered growth in all revenue streams excluding live events which were suspended due to COVID-19. This equated to total revenue of $15.2 million for the company, with recurring revenue standing at 75%.

The number of subscriptions increased to 7,885 which resulted in a 13% lift year-on-year. Monthly active users came to more than 250,000 users, representing a 20% compound annual growth rate.

Aspermont recorded annual contract value (ACV) at $8.9 million, up 6.4% compared quarter on quarter.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) rose 220% to $0.4 million. This was in contrast to the $70,000 achieved over the prior corresponding period (pcp).

Aspermont reported a cash balance of $4.6 million with no debt at the end of December.

Management commentary

Aspermont Managing Director, Alex Kent, hailed the outstanding results, saying:

Aspermont had a solid first quarter despite the impact of COVID-19 on the events business.

Our commercial models have proven to be robust, which enables us to increase revenue by launching new products with improved gross margins for the company despite the economic conditions.

A catalyst for the strong rise in the Aspermont share price?

In the company's Q1 highlights, management took the time to reflect on the company's share price. It said:

As a board, we consider Aspermont to be significantly undervalued compared to other global Mediatech peer companies, but we are pleased to see the recent rise in share liquidity as our new Frankfurt stock Exchange listing has attracted new investors in Germany. Our growth prospects are improving quarter by quarter as we enter new markets, with an increased focus on Asia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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