Guess which ASX tech share is rocketing 28% on huge full-year results

This tech share is catching the eye of investors on Wednesday.

| More on:
A corporate-looking woman looks at her mobile phone as she pulls along her suitcase in another hand while walking through an airport terminal with high glass panelled walls.

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

Key points

  • Serko has released its full-year results for FY 2023
  • The travel technology company has reported a strong increase in total income
  • Management expects more of the same in FY 2024

It has been a sensational start to the day for the Serko Ltd (ASX: SKO) share price.

In morning trade, the ASX tech share is up a massive 28% to $2.72.

Why is this ASX tech share rocketing higher?

Investors have been scrambling to buy Serko's shares after the company released its full-year results.

Here's a quick summary of how the company performed for the 12 months ended 31 March:

  • Total income up 154% year over year to NZ$48 million
  • Average revenue per booking up 65% to NZ$9.56
  • Online bookings up 93% to 4.1 million
  • Completed room nights on Booking.com for Business up 381% to 1.5 million
  • EBITDAF loss improved by 23% to NZ$21.8 million
  • Net loss after tax improved by 15% to NZ$30.5 million
  • Cash and short-term deposits of NZ$87.7 million
  • Underlying average monthly cash burn NZ$2.7 million

What happened during FY 2023?

For the 12 months ended 31 March, Serko reported a 154% increase in total income to NZ$48 million. A key driver of this growth was the company's deal with travel giant Booking.com, which saw 1.5 million room nights completed via Booking.com for Business.

And while Serko continues to operate at a loss, its metrics are all heading in the right direction and its balance sheet remains strong. The company's loss after tax improved by 15% to NZ$30.5 million, leaving it with cash and short term deposits of NZ$87.7 million.

In addition, the company's cash burn has been reducing, which bodes well for the future. Management advised that its underlying average monthly cash burn reduced from NZ$3.3 million to NZ$2.7 million in FY 2023. Things were even better in the second half, with its underlying average monthly cash burn averaging NZ$1.8 million.

Outlook

Also giving the ASX tech share a boost today has been its guidance for FY 2024.

Management advised that it expects total income to come in at NZ$63 million to NZ$70 million. This represents an increase of 31% to 46% year over year.

This is expected to be underpinned by the continued business travel recovery, growth in active customers in Booking.com for Business, foreign exchange tailwinds, and improving average revenue per completed room night.

In addition, management advised that there are a number of initiatives which have the potential to drive further revenue growth. However, the timing and therefore the impact on FY 2024 revenues is uncertain.

As for costs, Serko anticipates a total spend of between NZ$86 million and NZ$90 million. This reflects its current investment plans and anticipated efficiency gains, partially offset by higher volume related costs.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Serko. The Motley Fool Australia has recommended Serko. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Five happy friends on their phones.
Share Market News

Goldman Sachs says these ASX tech stocks can rise 18% to 30%

The broker sees big returns on offer from these shares.

Read more »

A guy helps a girl lift a couch, both are laughing.
Technology Shares

3 of the best ASX tech shares to buy and hold until 2030

I think these stocks have exciting futures.

Read more »

A young woman uses a laptop and calculator while working from home.
Technology Shares

If I'd put $5,000 in Block shares 5 months ago, here's what I'd have now

Was it a good idea to invest in this payments stock five months ago?

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Technology Shares

Why is the Brainchip share price sinking over 7% today?

What's going on with this tech stock on Wednesday?

Read more »

woman working on tablet
Technology Shares

Missed out on Nvidia? My best ASX tech stock to buy and hold

Do you have FOMO after the US chip maker's share price rocketed? Here's an Aussie company worth backing instead.

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Guess which ASX small-cap stock is rocketing 45% on 'pivotal moment'

Investors have responded very positively to an announcement.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »