Why is the Ansarada (ASX:AND) share price flying 14% today?

The Ansarada Group Ltd (ASX: AND) share price is rocketing today after the company released its latest quarterly report and investor update.

| More on:
rising asx share price represented by woman flying through the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ansarada Group Ltd (ASX: AND) shares are rocketing today after the company released its latest quarterly report and investor update. At the time of writing, the Ansarada share price is trading 13.64% higher at $1.25. 

Let's take a look at what's boosting the legal and financial software developer's shares.

Continued growth

Ansarada posted 29% year-on-year (YoY) growth in the third quarter of FY21 (Q3), increasing its total customer numbers to 3,210. This represents an increase of 18% YoY and 6% quarter on quarter (QoQ). The company is currently experiencing a record rate of increase in active customers, with 15 years of continued customer growth.

E-commerce platforms are driving Ansarada's customer growth, with the rapid expansion of the company in this market increasing in each quarter over the past few years. The significant growth in its e-commerce channel contributed 26% of the total increase in active customers.

An increasing volume of signups is also occurring globally. According to the company, this highlights the scalability and operating leverage of its business.

Ansarada achieved $2.1 million in positive cash flow from operations for the quarter and, as at the end of March, has a $22 million total cash balance with zero debt. The company is launching its newest platform for businesses, Workflow, in early Q4.

The company says Workflow enables customers to enhance their project management by simplifying deal-making processes and legal requirements. According to Ansarada, Workflow is "highly differentiating" against competitor products and will assist the company to capture increased market share and subscription revenue growth.

Differentiation is key since Ansarada operates in the highly competitive software industry. It develops and provides cloud-based software for legal and finance organisations.

Ansarada operates a software-as-a-service (SaaS) model and targets clients that undertake complex transactions. These include legal and accounting firms, corporate and financial advisers, financial institutions and listed or multinational companies.

The company's software encompasses workflow management, collaboration, secure file sharing, project management, and escrow services. Geographically, the majority of Ansarada's business is carried out in the Australian market.

Ansarada share price snapshot

Including today's boost, the Ansarada share price has gained a whopping 635% over the past 12 months. However, the company's shares have fallen by around 8% year to date. Ansarada has a current market capitalisation of around $89 million.

Motley Fool contributor Lucas Radbourne-Pugh 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.

More on Technology Shares

Three analysts look at tech options on a wall screen
Technology Shares

Xero shares doubled the ASX 200 return in FY24. What's next in FY25?

Will FY25 be another good year for software business Xero?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Technology Shares

Up 87% in a month, this ASX stock is winning millions in AI work

The gains continue piling for this company's stock price.

Read more »

A man dives off a boat into the sea, indicating a share price fall
Share Market News

Why did the Nasdaq Index take a dive on promising US inflation data?

Cooling US inflation sent the Nasdaq Index tumbling overnight. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Technology Shares

Buy this ASX tech stock for a 20%+ return: Goldman Sachs

The broker believes investors could get market-beating returns from this auto listings leader.

Read more »

A woman scratches her head in dismay as she looks at chaotic scene at a data centre

Which ASX shares could soar if AI falls into a $500 billion hole?

The math ain't mathing for one professional investor.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Netwealth share price higher on record quarter

What is causing investors to hit the buy button today?

Read more »

4 teenagers playing mobile game
Technology Shares

Goldman Sachs names 1 ASX 200 stock to buy and 2 to hold

Here's what the broker is saying about these three stocks.

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX shares today as the market rebounds
Share Gainers

Would I be crazy to buy DroneShield shares now at over $2?

After soaring more than 700% in a year, can DroneShield shares keep flying high?

Read more »