Junior technology company Stakk Ltd (ASX: SKK) is not looking quite so junior anymore, with strong news flow sending its market value soaring past $100 million in recent weeks.
And the company's shares were up another 12.5% on Thursday after the company reported record software as a service (SaaS) growth, and a projection that its annual recurring revenue was expected to exceed $8 million by the end of December.
Image source: Getty Images
Deal flow sending shares north
The company's shares were trading at just 0.6 cents only a couple of months ago, but following announcements, including the news that it had struck a deal with major online broker Robinhood Markets Inc (NASDAQ: HOOD) last month, the stock has skyrocketed.
On Thursday, when the company informed the ASX that its revenue growth was hitting new records, along with a surge in client numbers, the stock rose another 12.5% to 5.4 cents.
By our calculations, if you'd sunk $10,000 into Stakk shares at the start of August, you'd be sitting on about $88,000 worth of the shares now.
That share price growth has translated into a market capitalisation for the company of $118.4 million at the close of trade on Wednesday.
Dull but worthy
Stakk provides technology to its clients, which includes image capture, authentication, and transaction processing.
The company informed the ASX in its announcement on Thursday that it now had 212 active US clients, up from 29 in January, and annual recurring revenue had increased to $4.5 million, up from $1.4 million in January.
The company added:
The above metrics do not include any significant contribution from recently announced major customer wins of international brands Robinhood (NASDAQ:HOOD) and T-Mobile USA (NASDAQ:TMUS). Momentum continues to build with a robust pipeline of imminent new customer contracts that should see growth continue.
The company said it provided "critical but boring" financial infrastructure to its clients, which had translated into exceptional results.
These results represent one of the most rapid revenue escalations achieved by any ASX listed SaaS company this year and position Stakk as a top-performing growth stock within its sector. Modern fintechs and enterprise platforms pour resources into building 'sexy' new customer-facing experiences, while the complex, compliance-heavy infrastructure underpinning them – document capture, risk evaluation, authentication, transaction orchestration, settlement, and audit – remains under-served. Stakk builds what others won't: the essential, regulator-ready infrastructure that allows innovation to scale immediately and safely.
Stakk said it was also well-capitalised, following a recent $15 million capital raise.
