ASX tech shares are broadly edging lower today, as witnessed by the 0.2% decline in S&P/ASX All Technology Index (ASX: XTX) at the time of writing.
But one ASX tech share is leaving the sliding benchmark index in the dust.
Plexure Group Ltd (ASX: PX1), which enables retailers to engage with consumers in real time using connected devices and sensors, is up a whopping 76.4% after earlier posting gains of 90%.
This comes after the company updated the market on its contract with McDonald's Corp (NYSE: MCD) as well as updating its earnings guidance.
ASX tech share extends contract with McDonald's
The big share price moving news out from Plexure is the announcement that it's entered into new agreements with McDonald's for its digital customer engagement platform.
Plexure and McDonald's, the ASX tech share's largest customer, have inked a new five-year contract term, which can be further extended if both parties agree.
The company will continue to provide its platform to McDonald's and forecasts positive annual cash flow, compared to previous losses from its Plexure division. It expects to reduce its cost base while delivering operational improvements.
The ASX tech share's digital customer engagement platform supports 147 million daily customer interactions for McDonald's.
Commenting on the contract extension, Plexure CEO, Dan Houden said:
We are excited about our continued partnership with McDonald's and look forward to working collaboratively toward our mutual goal of delivering excellent experiences for McDonald's customers through our world-leading customer engagement platform.
The renegotiated commercial terms with McDonald's represent the culmination of a major transformation of the Plexure division underway since the merger with TASK.
Houden added that with the transformation complete, Plexure can "focus on driving profitable growth by leveraging its combined technology stack to provide an end-to-end cloud engagement and transaction platform at scale for the global QSR and hospitality sector".
The ASX tech share also is likely getting a lift today from its earnings guidance.
Plexure forecasts total revenue for the year ending 31 March 2023 of approximately NZ$56 million, up from NZ$32.6 million reported in the previous financial year.
Plexure Group share price snapshot
With today's big boost factored in, the ASX tech share remains down 40% in 2020. That compares to a year-to-date loss of 28% posted by the All Tech Index.
