Earnings season is in full swing, and today, we have 2 ASX tech shares posting drastically different outcomes after they each reported earnings.
Novonix Ltd (ASX: NVX) put up its half-yearly accounts, whereas Objective Corp Ltd (ASX: OCL) posted its FY24 annual results.
Both of these ASX tech shares have taken different paths following their earnings announcements.
Novonix is down 3% to 63 cents per share at the time of writing, whereas Objective has pushed more than 4% into the green at $13.19 apiece.
Let's take a closer look at what's unfolded.
ASX tech share in the red
Novonix shares are heavily sold today after the company's H1 2024 earnings results failed to impress.
Revenues were down 30% year over year, hitting $2.7 million. At the same time, net assets were down $26 million for the six months, "principally due to the reduction in cash and cash equivalents".
In other words, it burnt through $26 million of cash during the period.
Despite obtaining a binding off-take agreement with Panasonic Energy and securing US$103 million in U.S. investment tax credits, the company faced a net loss of US$28.7 million.
The loss was primarily driven by the costs associated with scaling operations and the impact of U.S. government tariffs on synthetic graphite from China.
At the end of the period, shareholder equity decreased by roughly 14% to $158 million.
Still, the ASX tech share said it was ticking the boxes for growing the business, hitting a number of milestones during the half:
NOVONIX also announced key strategic partnerships, progressed installation of equipment and operational knowledge through furnace operations, was selected to receive a U.S. investment tax credit and explored opportunities for our cathode business to create long-term shareholder value.
Objective Corp shines with strong growth
In contrast, Objective Corp delivered a robust performance for FY24. The ASX tech share reported a 66% increase in pre-tax income, reaching $44.3 million.
This was backed by a 49% rise in net profit to $31.3 million.
Meanwhile, annualised recurring revenue (ARR) grew by 11% to $104.5 million, reflecting strong demand across all its business lines.
Objective's focus on subscription-based revenue models looks to have paid off as well, with 100% of its software revenue now contracted under subscriptions.
The company also saw significant improvements in operating cash flow to $56 million, up from $23.4 million in FY23.
Investors are buying the ASX tech share en masse today after its FY24 numbers. And it's not difficult to see why. Compared to Novonix, it delivered a strong growth period, seeing investors reward it with higher market values.
Foolish takeaway
These ASX tech shares are showing very different outcomes after today's earnings, with one in the green and one in the red.
In the past 12 months, Objective shares are up 4%, whereas Novonix shares are down more than 43%.
