Ansarada (ASX:AND) share price surges on record quarter

About Latest Posts Brendon LauBrendon's passion for shares started by accident in 2003 and he has worked in various roles …

| More on:
These three ASX mining shares rocketed by more than 20% today

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

The Ansarada Group Ltd (ASX: AND) share price surged to a five-month high on Tuesday after it posted a record quarter.

The Ansarada share price surged 6% to $1.35 ahead of the close when the IT sector was struggling to keep its head above water today.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) eked out a 0.2% improvement as it gave up most of its morning gains.

Big customer growth drives Ansarada share price higher

But the Ansarada share price remained well bid as management reported a 99% increase in new customer wins for the June quarter compared to the same period last year.

This takes total subscribers on its confidential information sharing platform to 2,566, which is a 41% uplift over 4QFY20.

What's more, the customer wins have translated to a 17% improvement in revenue to $9.3 million in the latest quarter. Deferred revenue is up a more impressive 76% to $13.6 million over the same periods.

Ansarada share price still lagging peers

Shareholders will be hoping that the latest quarterly marks a turnaround in disappointing performance of the Ansarada share price.

Even with today's big rally, its shares are still down by nearly a third over the past year following its reverse takeover of The Doc Yard.

That's surprising given that anything to do with tech and growing recurring revenues would be hot property.

Just look at the Xero Limited (ASX: XRO) share price, Afterpay Ltd (ASX: APT) share price and Life360 Inc (ASX: 360) share price.

Why Investors are overlooking Ansarada

Perhaps one big issue is that not many retail investors understand the value proposition of the Ansarada offering.

It's software as a service (SaaS) platform allows enterprise customers to share and collaborate on confidential documents. Such a service is useful in mergers and acquisitions (M&As), sharing of board papers and tenders.

These aren't small niche markets. Ansarada is trying to point out the size of the opportunity by highlighting its use in the global infrastructure boom.

Chasing big market opportunities

Governments around the world are ramping up infrastructure construction as a way to stimulate their economies in the COVID-19 aftermath. Ansarada reckons the size of this opportunity is worth US$3.9 trillion.

Ansarada is leveraged to this theme as it says governments use its Tenders and Deals products to manage high-value/high-risk information.

This isn't only in the management of the tender process, but also the lifecycle of financing and M&A activities across the infrastructure asset lifecycle.

Motley Fool contributor Brendon Lau owns shares of Ansarada Group Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. 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

Man pointing at a blue rising share price graph.
Technology Shares

Why this high-flying ASX defence stock is surging again today

The ASX defence stock is on another tear today. But why?

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

'Signs of rotation' from ASX tech shares to value stocks and cyclicals: expert

Tech shares shone brightly in FY24 but will this trend continue in FY25?

Read more »

man on his phone in front of all his computer screens checking the market and the ASX 200
Technology Shares

Can WiseTech shares crack the $100 mark again?

This ASX broker expects WiseTech to return to a three-digit share price...

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

DroneShield share price sinks 13% on half year update

How did DroneShield perform during the first half? Let's find out.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

It's time to buy this ASX tech stock: Bell Potter

Why is the broker feeling bullish about this stock? Let's find out.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Technology Shares

Are DroneShield shares still fundamentally expensive now?

DroneShield shares still look expensive, but the growth is there...

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

Should we be worried about a Nasdaq stock market crash?

The tech sell-off has seen the Nasdaq plunge 3.4% in two days. Now what?

Read more »

A group of six work colleagues gather around a computer in an office situation and discuss something on the screen as one man points and others look on with interest
Technology Shares

Buy this fantastic ASX 200 stock following the tech selloff

Bell Potter thinks that investors should snap up this stock while they can.

Read more »