After closing Thursday at $3.82, the stock price was a whopping 10.7% higher in early trade on Friday morning to hit $4.23.

What did the company report?

• Revenue up 17.7% to $446 million
• Net profit after tax (NPAT) up 14.6% to $9.8 million
• EBITDA before transaction-related costs up 12.7% to $46.3 million
• Operating cash flow up 57.8% to $40.7 million
• Total broadband connections up 20.6% to 756,800

Aussie Broadband also announced that its co-founder Phillip Britt would move from the chief executive role to group managing director, with chief financial officer Brian Maher becoming the chief of the Aussie Broadband arm. Meanwhile executive director Michael Omeros will be appointed chief executive of Symbio once the acquisition completes.

What else happened in the first half?

The major development during the half was Aussie Broadband's takeover of cloud telecommunications provider Symbio Holdings Ltd (ASX: SYM) for $262 million. The transaction is due to complete at the end of this month.

Aussie raised $140 million through stock issues to fund the Symbio deal and prepare for other potential mergers.

The Aussie Broadband share price fell when the acquisition was first announced in early November, but has since stabilised.

What did management say?

Aussie Broadband co-founder and group managing director Phillip Britt welcomed the results, saying:

The company's transition from being a largely residential-focused retail service provider into a multi-faceted communications and technology service provider is well on track and delivering strong results. At the same time, our award-winning customer service has underpinned our success while continuing to grow our NBN market share.

We believe that the ACCC's finalisation of the new NBN SAU regulations that came into effect on 1 December 2023 will be positive for Aussie. Following these changes, we were able to reduce prices in 100Mbps speed and above while improving margins in market segments that Aussie is already strong in. The full effect of these changes will flow through from the second half of FY24.

What's next for Aussie Broadband?

Aussie Broadband upgraded its full-year guidance, with EBITDA forecast now $105 to $110 million, compared to $100 to $110 million previously. Expected capex has come down from $47 to $52 million to a range of $40 to $45 million.

The company reported already 19,000 new broadband connections have signed up in the second half.

Aussie Broadband share price snapshot

The broadband provider issued shares at $1 during its initial public offering (IPO) in late 2020. Before market open on Friday, it was almost a four-bagger to trade at $3.82.

The post Aussie Broadband share price rockets 11% after bumper results and upgraded guidance appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down almost 8% to $3.62. This has been driven by the successful completion of a placement raising $120 million. The placement was priced at a 9.4% discount of $3.55 per share and supported by new and existing institutional, sophisticated, and professional investors. The proceeds will be used to strengthen Aussie Broadband's balance sheet in light of its capital investment pipeline, potential M&A, and the proposed Symbio Holdings Ltd (ASX: SYM).

Bowen Coking Coal Ltd (ASX: BCB)

The Bowen Coking Coal share price is down 4.5% to 10.5 cents. This coal miner's shares are falling today after it raised $50 million at a discount of 9 cents per new share. Management notes that the proceeds will provide Bowen with balance sheet flexibility to fund ramp-up of mining at Ellensfield South Pit until it achieves steady-state production in the second half of FY 2024.

Integral Diagnostics Ltd (ASX: IDX)

The Integral Diagnostics share price is down 31% to $1.83. This morning, this medical imaging services provider released a trading update. That update revealed higher-than-expected labour costs, which have impacted its operating EBITDA. This has been driven by clinical staff shortages, particularly in regional areas, and cost inflation.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 6% to $11.35. This has been driven by the wine giant completing the institutional component of its $825 million equity raising. These funds are being raised to support the acquisition of California-based luxury wine company DAOU Vineyards for US$900 million (plus US$100 million in potential earnouts). The institutional component of the entitlement offer raised gross proceeds of approximately $604 million at a 10.7% discount of $10.80 per new share.

The post Why Aussie Broadband, Bowen Coal, Integral Diagnostics, and Treasury Wine are falling today appeared first on The Motley Fool Australia.

Yep, just before market open this morning, Aussie Broadband released an ASX announcement declaring its shares to be in a trading halt.

It soon became pretty clear why.

Aussie Broadband has just announced that its fellow ASX telco Symbio Ltd (ASX: SYM) has accepted Aussie's takeover offer and entered into a scheme or arrangement. As such, Symbio now looks set to be acquired in full by Aussie Broadband.

On Monday, we went through the history of Aussie Broadband's courtship of Symbio. The company has been locked in a tussle to buy out Symbio for over a month. Aussie came out on top over rival telco Superloop Ltd (ASX: SLC), which had made competing offers for Symbio.

But Aussie Broadband's offer of $2.26 per share in cash, and 0.192 Aussie Broadband shares for every Symbio share in scrip has evidently won the day. This valued Symbio at $3.01 per share.

At the time of writing, the Symbio share price is up 4% to $2.86.

How would the Symbio acquisition benefit the Aussie Broadband share price?

This offer has been accepted and universally recommended by Symbio's board, as revealed in the company's own ASX release this Wednesday. That's of course in the absence of any superior offer emerging. As well as after an independent expert report publishes its findings.

The scheme will also require court approval if it is to go ahead. As well as the approval of Symbio's shareholders, of course.

If all goes to plan, both companies expect the acquisition to be completed in February next year.

Here's some of what Aussie Broadband plans for a post-acquisition future:

The Symbio business is highly complementary to the existing Aussie Broadband business and strategy, and the combined entity will be attractively positioned as a scale, diversified modern voice, business and unified communications player in Australia.

The acquisition provides Aussie Broadband the following benefits:

• Accelerates significant growth in Wholesale and Enterprise & Government
  segments
• Diversification creating new growth opportunities
• Increased scale and strengthened financial profile
• Highly complementary businesses with operational and cost efficiency
  opportunities
• Access to new capabilities

Aussie Broadband's current intention is to operate Symbio predominantly as a standalone
business in the near-term following acquisition, with the businesses to be integrated and
efficiencies realised over time.

Aussie Broadband shareholders will now have to wait and see if this acquisition gets regulatory and shareholder approval from both sides.

The Aussie Broadband share price remains up by a pleasing 50.77% in 2023 to date, and by 56.8% over the past 12 months.

The post Here's why the Aussie Broadband share price just got put on ice appeared first on The Motley Fool Australia.

But it's a very different story when it comes to Aussie Broadband shares.

The Aussie Broadband share price did have a shaky start this morning, dipping into red territory. But all has been forgiven by investors, with the ASX 200 telco currently up a healthy 0.26% at $3.89 a share.

This bucking of the broader market could have something to do with the major announcement Aussie Broadband released this morning.

In an ASX release, the telco confirmed that it has submitted a binding takeover offer for fellow telco Symbio Holdings Ltd (ASX: SYM).

Symbio has proven to be a highly sought-after prize, with Aussie Broadband competing with another telco in Sueprloop Ltd (ASX: SLC) in a bidding war that has been going on for several months. Late last month, Superloop put in a final bid of $1.425 per share in cash and 2.14 Superloop shares for each Symbio share owned.

But just a few days later, Aussie Broadband came to the table with a non-binding offer of $2.21-$2.26 in cash (final amount to be determined by Symbio performance rights and other details) per share and 0.192 Aussie Broadband shares for each Symbio share owned.

Aussie Broadband share price rises amid ongoing takeover tussle

Based on Aussie Broadband's share price at the end of last week, this valued Symbio at $2.95-$3 a share.

Today's announcement from Aussie Broadband related to this offer for Symbio.

In an ASX statement, the company told investors the following:

Aussie Broadband confirms that it has completed its due diligence assessment of Symbio and, following review and constructive discussions on the Scheme Implementation Agreement, over the weekend submitted a binding offer to acquire 100% of the shares in Symbio, via a Board recommended scheme of arrangement.

This offer is conditional on the Symbio board's recommendation, and will only be valid until 11.59 pm on 31 October. It will also allow Symbio to pay out a fully-franked dividend of up to 35 cents per share so that investors can benefit from the company's stockpile of franking credits.

Symbio's board has acknowledged the binding bid today, but has yet to make a decision:

The Symbio Board is currently considering the Binding Offer and discussions remain ongoing… There is no certainty at this stage that any agreement will be reached or that a transaction will eventuate.

So Aussie Broadband shareholders will have to wait a little longer to see if their company is set for this major acquisition.

The Aussie Broadband share price is now up a healthy 50% so far in 2023.

The post The Aussie Broadband share price is bucking the ASX 200 today. Here's the latest appeared first on The Motley Fool Australia.

Four ASX shares that are trying their best to lift the market are listed below. Here's why they are rising:

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up almost 2% to $1.33. This morning, this medical device company revealed that it has received additional funding of US$10 million from the Biomedical Advanced Research and Development Authority (BARDA) for the pivotal trial program of NovoSorb BTM. This increases the total funding commitment from BARDA to US$25 million.

Superloop Ltd (ASX: SLC)

The Superloop share price is up 2% to 67.8 cents. Investors appear to have responded positively to news that the telco has been outbid for a proposed acquisition (see below). It seems that some investors weren't overly keen on the plan.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is up 16% to $3.07. This follows news that Aussie Broadband Ltd (ASX: ABB) has outbid Superloop. It has tabled the equivalent of a $3.15 per share offer for the cloud-based communication company. This offer increases to $3.30 per share if franking credits are released with a special dividend. This represents a 10% increase on Superloop's $3.00 per share offer (including franking credits).

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is up 14% to 58 cents. This morning, this graphite producer refuted media speculation that it was stockpiling its production. Management revealed that sales and shipments completed recently. It adds: "Ongoing strength in global electric vehicle sales has seen increased anode production in China and improved natural graphite demand recently."

The post Why Polynovo, Superloop, Symbio, and Syrah shares are racing higher today appeared first on The Motley Fool Australia.

In morning trade, the ASX tech share is up 17% to $3.09.

Why is this ASX tech share racing higher?

Investors have been scrambling to buy the cloud-based communication company's shares this morning after a bidding war broke out.

As some readers may be aware, Superloop Ltd (ASX: SLC) has been undertaking due diligence and recently tabled a best and final non-binding offer of $2.85 per share in cash and scrip. This increases to $3 if you include potential franking credits that could be released before closing.

After the market close on Friday, it was revealed that Aussie Broadband Ltd (ASX: ABB) has entered the fray with a non-binding offer of $3.15 per share in cash and scrip. Once again, if franking credits are released, the offer will increase in value to $3.30 per share.

This represents a 10% premium to Superloop's offer and is 25% higher than where the ASX tech share ended last week.

According to the release, Aussie Broadband's default consideration comprises $2.36 in cash and 0.192 Aussie Broadband shares for each Symbio share. This represents 75% cash and 25% scrip. However, Symbio shareholders will be able to choose to maximise either cash or ABB scrip, subject to a scale back as appropriate.

What now?

The Symbio board has undertaken a review of Aussie Broadband's proposal. Given its premium to the Superloop offer, the board considers it to be a superior proposal.

As a result, it has entered into the exclusivity and process deed to enable Aussie Broadband to undertake a period of exclusive due diligence for 15 business days.

It has also confirmed its intention to recommend the Aussie Broadband proposal, subject to entry into a scheme implementation deed, the findings of the independent expert, and in the absence of a superior proposal.

Though, that doesn't necessarily mean the end of Superloop. While Superloop called its latest proposal its best and final offer, it came with the disclaimer that it was "best and final in the absence of a superior proposal."

Symbio revealed that it has continued to engage with Superloop.

The post Up 17%! A bidding war is breaking out for this ASX tech share appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is up 6.5% to $3.09. This morning, this horticulture company accepted a takeover approach from a consortium led by Paine Schwartz Partners (PSP). According to the release, the two parties have entered into a scheme implementation agreement for the acquisition of Costa by way of scheme of arrangement at $3.20 cash per share.

Nufarm Ltd (ASX: NUF)

The Nufarm share price is up 1.5% to $4.70. This appears to have been driven by a broker note out of Macquarie this morning. Its analysts have retained their outperform rating on the agricultural chemicals company's shares with a trimmed price target of $6.25. The broker believes the market is undervaluing the company's seed technology business.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 5% to $4.19. This is despite there being no news out of the lithium giant. However, a number of lithium shares are rising on Friday. This could be a sign that some investors believe that recent weakness in the industry has created a buying opportunity.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is up 18% to $2.65. Investors have been buying the cloud-based communication services provider's shares after it received an improved takeover offer from Superloop Ltd (ASX: SLC). Superloop's best and final offer is the equivalent of $2.91 per share, which is up from $2.85 per share previously.

The post Why Costa, Nufarm, Pilbara Minerals, and Symbio shares are charging higher appeared first on The Motley Fool Australia.

In morning trade, the ASX tech share is up 20% to $2.70.

Why is this ASX tech share shooting higher?

Investors have been scrambling to buy the cloud-based communication services provider's shares after it received an improved takeover offer from Superloop Ltd (ASX: SLC).

According to the release, Superloop has lifted its offer to $1.425 in cash and 2.14 Superloop shares for each Symbio share.

Based on Superloop's closing price of 69.5 cents per share on 21 September, this implies an offer price of $2.91 per share.

In addition, with Symbio sitting on 15 cents per share worth of franking credits, the offer will lift to $3.06 per share if these are released via a special dividend from the ASX tech share prior to implementation.

The announcement notes that this is the telco's best and final offer and is up from its previous offer of $2.85 per share. Commenting on the deal, Superloop said:

Superloop confirms that it has completed its due diligence assessment of Symbio and affirms its confidence in the commercial merits of the Proposed Transaction and its potential to create significant value for the shareholders of both companies. This due diligence process has further confirmed that the existing terms of the Proposal are compelling and, taking into account all information reviewed, appropriately values Symbio.

Symbio response

The ASX share advised that its board is considering Superloop's revised proposal and discussions remain ongoing.

It also warned that there is no certainty at this stage that any agreement will be reached or that a transaction will eventuate. As a result, it stressed that shareholders do not need to take any action and it will update them as appropriate.

The post Guess which ASX tech share is leaping 20% amid an improved takeover bid appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Calix Ltd (ASX: CXL)

The Calix share price is up 2% to $4.21. This morning, Pilbara Minerals Ltd (ASX: PLS) announced that it will push ahead with a joint venture with the battery materials technology company. This will see the construction and operation of a Mid-Stream Demonstration Plant at the Pilgangoora Operation utilising Calix's electric kiln technology. Pilbara Minerals believes it could be a "game-changer" by materially reducing carbon emissions.

Codan Limited (ASX: CDA)

The Codan share price is up over 3% to $7.76. This metal detector company has announced the acquisition of Eagle NewCo for $22 million. It is a UK command and control solutions business that provides mission critical control room communication and workforce management solutions. Eagle's solutions are currently used by more than two‐thirds of police forces in the United Kingdom, as well as by major transportation hubs and airports. This includes Dubai International airport and the London Underground.

PSC Insurance Group Ltd (ASX: PSI)

The PSC share price is up 2% to $4.90. Investors have been buying this insurance solutions company's shares after it released its guidance for FY 2023. PSC expects to report underlying EBITDA of approximately $111 million. This is above its guidance of $101 million to $105 million.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is up 17.5% to $2.75. This has been driven by news that Superloop Ltd (ASX: SLC) has tabled a $2.85 per share takeover offer for the cloud communications company. Including potential franking credits of 15 cents per share, the total consideration lifts to $3 per share. Symbio has granted Superloop due diligence.

The post Why Calix, Codan, PSC, and Symbio shares are rising today appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords share is up 18% to $2.75.

Why is this ASX All Ords share rocketing?

Investors have been scrambling to buy this cloud communication company's shares after it received a ~$243 million takeover approach from connectivity services provider Superloop Ltd (ASX: SLC).

According to the release, Superloop has tabled an offer that values Symbio at $2.85 per share. This comprises $1.425 cash and 2.14 Superloop shares for each Symbio share.

Symbio shareholders would also be able to elect to receive the proposed purchase price in the form of cash or Superloop shares by way of a mix and match option under the scheme of arrangement. This is subject to scale back to achieve an overall consideration maximum of 50% cash, including any dividends paid.

The release also notes that the indicative proposal contemplates a fully franked dividend to Symbio shareholders prior to scheme implementation of up to $0.35 per share, implying a release of franking credits of up to $0.15 per share.

Including the $0.15 per share from the release of franking credits, the offer increases to $3 per share.

This means that Superloop's offer for the ASX All Ords share is a premium of 19.7% (or 26.1% including franking credits) to its last close price.

Though, it is worth noting that it is still well short of its 52-week high of $4.55. So, this offer could arguably be seen as opportunistic.

What was the response?

The Symbio Board believes that there is sufficient commercial merit in the indicative proposal to enter into the exclusive period for mutual diligence.

However, it notes that it would only progress the indicative proposal on a disciplined basis such that any transaction would be in the best interest of Symbio's shareholders.

It also warned that there is no certainty at this stage that the indicative proposal will progress to a proposal to be considered by Symbio shareholders. In the meantime, shareholders do not need to take any action and the board will update shareholders as appropriate.

Finally, the ASX All Ords share revealed that it is on track to achieve FY 2023 EBITDA at the upper end of its stated guidance. This will be in the range of $27 million to $28 million.

The post This ASX All Ords share is rocketing 18% following a takeover approach appeared first on The Motley Fool Australia.

Let's find out why this trio of All Ords stocks is screaming higher today.

Blackmores Ltd (ASX: BKL)

The Blackmores share price is currently $93.53, up 21.8%. Earlier in the session, the All Ords stock hit $94, 22.4% higher than yesterday's closing price.

The health supplements manufacturer is flying high today on news of a $1.9 billion takeover bid.

As my Fool colleague Bernd reports, Blackmores has entered into a scheme implementation deed with Kirin Holdings Company.

Kirin wants to acquire 100% of Blackmores shares for $95 per share, less a fully franked special dividend of $3.34 that the board has announced it will pay if the takeover proceeds.

The Blackmores board has unanimously recommended the scheme, subject to standard conditions.

CEO Alastair Symington said:

Today is an important day in the history of Blackmores … Importantly it also confirms the significant opportunity that lies ahead for our employees and other key stakeholders of Blackmores as both companies come together to combine their focus on growing Kirin's health science business across the world.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is currently $1.90, up 13.4%. Earlier in the session, the All Ords stock hit $1.95, 16% higher than yesterday's close.

The ASX tech share is on the rise after the voice communications software provider lodged a Q3 FY23 trading update with the ASX and confirmed its full-year FY23 guidance.

The company expects FY23 earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of $26 million to $28 million.

Symbio said stabilised market conditions are driving organic growth and cost-cutting initiatives are expected to create a lower cost run-rate in FY24.

Symbio's expansion into Singapore, Malaysia and Taiwan has led to a 170% bump in the company's total addressable market (TAM). The company now estimates its TAM to be 100 million people by 2024.

Co-founder and CEO Rene Sugo said:

We continue to see demand improving from our customers both domestically and globally. The
business has also been focussed on execution of key projects around automation, system
optimisation and improving customer experience through self-service portals and APIs.

Kogan.com Ltd (ASX: KGN) 

The Kogan share price is currently $4.30, up 11.4%. Earlier in the session, the All Ords stock reached $4.32, 11.9% higher than yesterday's closing price.

The ASX retail share appears to be riding high on the back of yesterday's Q3 FY23 business update. Kogan shares closed the session yesterday up 7.2%.

As my Fool colleague Monica reports, investors appear to be pleased with the Q3 numbers and supportive of plans for a buyback of up to 10% of stock, commencing in May.

The company reported three consecutive months of positive EBITDA and ended the quarter with $49.1 million in net cash.

CEO and founder Rusian Kogan said:

The journey to get here has been one of the toughest in our 17 year history, but also one of our most rewarding. It goes without saying – we are a far stronger company today than ever.

The post 3 All Ords stocks rocketing over 10% on Thursday appeared first on The Motley Fool Australia.

The two ASX tech shares listed below are making big moves in opposite directions following the release of their respective results. Here's what they reported and how investors have responded:

Iress Ltd (ASX: IRE)

The Iress share price is down 3% after the financial technology company's full year results disappointed the market.

Iress reported a 3.7% increase in revenue to $617.9 million, but a 0.7% decline in segment profit to $165.1 million and a 28.6% decline in reported net profit after tax to $52.7 million. This was at the low end of the company's guidance range.

Looking ahead, management has stated that it expects FY 2023 segment profit "to be at or above the levels of 2022." However, the company also intends to provide a full update on its medium term guidance at its investor day in April. Investors appear to be concerned that this could mean that management retracts its 2025 targets.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is up 4% to $1.90. This morning, this voice communications software provider reported a 5% increase in half year recurring revenue to $57.2 million.

And while the ASX tech share posted a 33% decline in EBITDA to $11.6 million, it has reiterated its full year EBITDA guidance of $26 million to $30 million. Management also revealed that it then expects to return to EBITDA growth in FY 2024.

Looking further ahead, the company remains "confident that the global megatrends of enterprise cloud adoption and new ways of working, including hybrid working, will prevail through the current period of uncertainty."

The post 2 ASX tech shares making big moves on results announcements appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

BWX Ltd (ASX: BWX)

The BWX share price is down a further 12% to a new low of 26 cents. Investors have been abandoning the Sukin skincare manufacturer after the release of a shocking business update. BWX has admitted to channel stuffing activities and revealed a growing mountain of debt. As things stand, BWX is going to breach its debt covenants in January if they are not waived. And don't be surprised if class action lawyers are circling the company.

Novonix Ltd (ASX: NVX)

The Novonix share price is down over 6% to a 52-week low of $1.59. This morning, the battery materials technology company appeared to downgrade and delay its production guidance. As of late October, Novonix was on track for synthetic graphite anode materials production of 10,000 tonnes per annum (tpa) in 2023. It now expects to begin production at a rate of approximately 3,000 tpa in 2024, before ramping up to approximately 12,000 tpa in 2028.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price has crashed 34% to $1.68. Investors have been selling this voice communications software provider's shares after it downgraded its FY 2023 earnings guidance. Symbio now expects FY 2023 EBITDA to be between $26 million and $30 million, which represents a 25% downgrade based on the mid-point of its guidance ranges. Management advised that the company's Communications Platform-as-a-Service (CPaaS) division has been impacted by returns and slow sales progress.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is down 3.5% to $4.61. This has been driven by news that the ACCC has blocked its proposed regional mobile network arrangements with Telstra Group Ltd (ASX: TLS). The competition watchdog believes the "arrangements will likely lead to less competition in the longer term and leave Australian mobile users worse off over time, in terms of price and regional coverage." Telstra has since announced plans to appeal the decision.

The post Why BWX, Novonix, Symbio, and TPG shares are dropping today appeared first on The Motley Fool Australia.

At the time of writing, the voice communications software provider's shares are down a massive 33% to a 52-week low of $1.72.

This means the Symbio share price is now down a very disappointing 75% in 2022, as you can see below.

Why is this All Ords share being hammered?

Investors have been hitting the sell button today in response to the release of a trading update after the market close on Tuesday.

Unfortunately for Symbio, it appears that demand during the COVID pandemic is unravelling somewhat right now, which is weighing on its performance.

According to the release, the company now expects FY 2023 EBITDA to be between $26 million and $30 million. This compares to its previous guidance of between $36 million and $39 million, which represents a 25% downgrade based on the mid-point of the ranges.

What's going on?

Management advised that the company's Communications Platform-as-a-Service (CPaaS) division has been impacted by returns and slow sales progress.

In respect to the former, it notes that several US-based global software companies have returned unused phone number inventory in the second quarter following COVID-related bulk orders.

As for the latter, management highlights that new deals are taking longer to finalise. It revealed that there are approximately 400,000 Australian phone numbers that have been in the final stages of the contract process since 30 June. Positively, Symbio remains confident they will materialise.

The All Ordinaries share also advised that other business divisions, TaaS and UCaaS, are performing in line with previous expectations, albeit at a slightly slower pace due to some areas of softness in the economy.

In response, Symbio has reduced its capital expenditure plans, cut discretionary spending on travel and marketing, and suspended recruiting. It is also exploring additional measures and opportunities to reduce its cost base.

Symbio co-founder and CEO, Rene Sugo, commented:

Despite a positive Q1'23, which tracked in line with our expectations, some unexpected customer activity during Q2'23 has impacted trading. As a result, we have revised our expected FY23 EBITDA guidance to $26 million to $30 million.

Symbio has acted quickly in response, reducing capex and opex to preserve our strong balance sheet. We are continuing to efficiently execute our strategy and remain committed to our APAC expansion plans. Singapore is performing well and at this stage, our focus is now on launching operations in Malaysia and Taiwan. Once we are cash flow positive in all three countries, we will then expand further into the APAC region as outlined in our 2030 vision.

The post Why did this ASX All Ordinaries share just crash 33%? appeared first on The Motley Fool Australia.

And no, it's not Telstra Corporation Ltd (ASX: TLS), which is up 1.3%.

The ASX telco share in question is Vonex Ltd (ASX: VN8).

The microcap company closed yesterday trading for 7.7 cents and is currently trading for 9.4 cents, giving it a market cap just north of $31 million.

So, what's piquing ASX investor interest today?

ASX telco share soars on cash flow outlook

Investors are bidding up the ASX telco share today after the company reported it had made the final cash payment to Symbio Holdings Ltd (ASX: SYM) to acquire part of its MyNetFone Direct Business.

The final payment sees Vonex complete the full $31 million in consideration payable to Symbio.

The ASX telco share reported this will result in an $833,000 monthly improvement of its net cash flow.

Commenting on the milestone, Vonex CEO Matt Fahey said:

Our completion of the deferred acquisition payments to Symbio Ltd marks the beginning of a new era for Vonex with greater financial flexibility.

We are excited to deliver further growth in the year ahead, fully unencumbered by deferred acquisition payments, as we continue to advance M&A pipeline opportunities which offer the potential to expand Vonex's customer base, geographic presence and product suite.

Vonex listed on the ASX on 13 June 2018.

How has Vonex been performing?

With today's intraday leap factored in, the ASX telco share is down 15% year to date. That compares to a 9% loss posted by the All Ordinaries so far in 2022.

Vonex reported some strong quarterly results on 29 July, which saw shares close 1% higher on the day. Highlights included record quarterly gross unaudited revenue of $10.5 million, which was up 81% from the prior corresponding period.

The post 'New era': Why this ASX telco share is soaring 22% appeared first on The Motley Fool Australia.

That's according to Montgomery Small Companies Fund portfolio manager Gary Rollo, who says this merely presents a chance to buy quality companies for cheap.

"It creates opportunities to invest in businesses whose share price decline is due to changing sentiment rather than deteriorating fundamentals," he wrote on the Montgomery blog.

"In this climate, one company we think deserves investor attention is Symbio Holdings Ltd (ASX: SYM)."

Symbio is a telecommunications provider that makes cloud- and software-based technology such as communications-platform-as-a-sevice (CPaaS).

The company's stock has lost about half of its value since November.

"To be honest, I don't think it was expensive before the pullback," said Rollo.

"But getting re-classified as a tech company in late 2021 seems to have been a red flag for some investors."

Symbio doesn't just provide vanilla voice and video calling solutions. Rollo expanded on a couple of use-cases that show off its software magic.

"When you are trying to find your ride-share driver, you don't want them to have your number and vice versa, but you do want to place a call to find out where that driver is. Symbio's software helps do that," he said.

"When Zoom needs to offer voice access to a video call conference it needs to be able to seamlessly join that call to its Zoom stream and have the audio terminate on the traditional telecom network. In Australia, Symbio's software helps do that."

A 15-times growth opportunity

As for that dirty word "growth", Rollo remarkably pointed out that even if the business did not expand at all from here, it would still return in excess of 10% per year from the current share price. 

But that's not why the Montgomery team has bought Symbio shares.

Rollo explained that they've bought in because its "medium-term growth strategy looks plausible".

"Symbio is a dominant provider of CPaaS services in Australia, and has an enviable client list of global technology and consumer facing growth businesses," he said.

"In other markets in Asia, it's not so straightforward for these customers to turn up and gain access to the local telecom markets, and those customers want a Symbio-like player in those markets."

The company has explicitly stated Singapore, Malaysia, Taiwan, Japan, South Korea and Vietnam as six markets it would enter over the 2022 to 2025 period.

"Management's 2030 vision is for 100 million phone numbers," said Rollo.

"This compares to 6.4 million numbers Symbio hosts in its Australian CPaaS today. That's a giant shift in [the] addressable market."

Rollo pointed out how the unit economics of this is "compelling" as Symbio's offerings are entirely software-based. That software is already built, so scaling will hardly cost anything.

"In more 'normal' markets you would expect to pay for the underlying growth you are getting today and you would put some option value for the Asian growth strategy," said Rollo.

"[If] Symbio's Asian growth strategy succeeds, [it] is worth many many multiples of the current share price if it gets delivered."

The post 'Compelling' ASX tech share that could grow its user base 1,500% appeared first on The Motley Fool Australia.

But with mining and financial shares dragging the index up, there are hundreds of ASX shares that have fallen far more than that.

Some former market darlings, especially ASX growth stocks, have seen their valuations halve, if not worse.

But are we now at a point where some of those businesses have been punished too much? Perhaps the stock price has lost all sense of the company's outlook?  

A couple of experts recently each picked out an ASX share they think are in that position and are ripe to buy right now:

'Unjustly' sold off

To Montgomery Investment Management portfolio manager Gary Rollo, Symbio Holdings Ltd (ASX: SYM) looks way too cheap at the moment.

The software maker has seen its share price plunge 38.7% this calendar year.

"It's been sold off so hard because the comparators, the overseas players that do what it does, they're at a different stage in their life cycle than the Symbio is," Rollo told a Livewire video.

"So this business has had its valuation regime adjusted, I think unjustly, without reflecting on the fundamentals."

Rollo doesn't detect any change to the business or its outlook compared to before the stock price fall.

"It's a $350 million market cap. It's got $50 million of cash on the balance sheet, so we don't have a capital structure question," he said.

"It's on 8.5 to 9 times EBITDA [earnings before interest, tax, depreciation, and amortisation]… so it doesn't have a valuation question."

Symbio's hot growth opportunity is in Asia and that hasn't diminished.

"But you're not paying for it and so we like the look of that and that's our tip for now." 

'Capital-light, high growth' business

QVG Capital portfolio manager Josh Clark picked Johns Lyng Group Ltd (ASX: JLG) as a current bargain.

Johns Lyng shares have fallen a shocking 37.5% just this month.

"Yeah, absolutely it's been sold off, [from] the $9 range into the mid-$5s or thereabouts, so the valuation's actually starting to look much more compelling."

As a service provider to insurance companies, Johns Lyng was recognised by the market as a star in recent years.

Clark admits that did make the ASX share expensive before May started.

"But they haven't seen a change to their earnings. They're still going to hit their earnings guidance," he said.

"I think part of the sell-off is the market's having a bit of a hissy fit that there's no upgrade near term… Also management has sold some stock."

Clark urged investors to look past the recent share price movements.

"If you focus too much on that, you're missing the forest for the trees," he said.

"It's still a really capital-light, high growth services business. I've said this a lot, but owner, founder-led, which is really important and these guys have just got more irons in the fire than you can count."

The post 2 ASX shares experts think have sold off too much appeared first on The Motley Fool Australia.

Two that investors might want to put on their watchlists are listed below. Here's why they are rated highly:

Symbio Holdings Ltd (ASX: SYM)

The first small cap to watch is Symbio. It was formerly known as MNF Group and before that MyNetFone. Symbio specialises in the voice over internet protocol (VoIP) technology which is used to support services like teleconferencing, online business meetings, and digital data transfers.

It appears well-placed for growth over the long term thanks to increasing demand for VoIP technology, its expansion into Asia, and its strong balance sheet following divestments. The latter gives management opportunities to look at boosting its growth with acquisitions.

Not that it necessarily needs to. Symbio has been growing its recurring revenue at a solid rate in recent years thanks partly to strong growth in phone numbers on its network. For example, during the first half, the company reported a 13% lift in recurring revenue to $54.4 million. Pleasingly, management sees significant growth opportunity ahead and is boldly targeting 100 million numbers on its network by 2030. This compares to 6.4 million at the end of December.

Ord Minnett currently has a buy rating and $7.15 price target on Symbio's shares.

Whispir Ltd (ASX: WSP)

Another small cap ASX share to watch is Whispir. It provides a leading software-as-a-service (SaaS) communications workflow platform that automates interactions between organisations and people.

Like Symbio, Whispir has been growing at a solid rate in recent years and management appears confident this will continue. This is due to the global mega trend of digital transformation which is providing strong tailwinds.

And given the low levels of churn the company is reporting (under 2%), it appears to have a sticky platform and a strong foundation to build on.

Ord Minnett is also a fan of Whispir. It has a buy rating and $2.85 price target on its shares.

The post 2 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

Three that investors might want to get better acquainted with are listed below. Here's why they are rated highly:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan's software provides businesses with new and more effective ways for their teams to perform at higher levels and deliver better results. This is because, as the company notes, its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Morgan Stanley is bullish on Bigtincan. It has an overweight rating and $2.10 price target on its shares.

Symbio Holdings Ltd (ASX: SYM)

Another small cap to watch is Symbio. It specialises in the Voice over Internet Protocol (VoIP) technology which is used to support services like teleconferencing, online business meetings, and digital data transfers. Symbio appears well-placed for growth over the long term thanks to increasing demand for VoIP technology, its expansion into Asia, and its strong balance sheet. The latter gives management opportunities to look at boosting its growth with acquisitions.

Ord Minnett currently has a buy rating and $7.15 price target on Symbio's shares.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It provides a leading software-as-a-service (SaaS) communications workflow platform that automates interactions between organisations and people. Whispir has been growing at a solid rate in recent years and management appears confident this will continue. This is due to the global mega trend of digital transformation which is providing strong tailwinds. Another positive is the low levels of churn the company is reporting (under 2%), which demonstrates the stickiness of its platform.

Ord Minnett is also a fan of Whispir. It has a buy rating and $2.85 price target on its shares.

The post 3 exciting small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.

Here's what you need to know about these growth shares:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first growth share to consider is an ETF that allows investors to buy many of the Asian region's best growth shares. The BetaShares Asia Technology Tigers ETF is home to about 50 companies such as Alibaba, JD.com, Netease, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent. BetaShares notes that due to the region's younger, tech-savvy population, Asia is surpassing the West in terms of technology adoption and it is anticipated to remain a growth area for some time.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. It was hit hard during the pandemic but has bounced back strongly in FY 2022. For example, earlier this week, IDP delivered a 47% increase in first-half revenue to a record of $397 million and a 70% lift in net profit after tax (NPAT) to $52.9 million. This was despite parts of the company still suffering from COVID restrictions. Macquarie was pleased with its performance. In response, it put an outperform rating and $35.00 price target on its shares.

Symbio Holdings Limited (ASX: SYM)

A final ASX growth share to look at is Symbio. Formerly known as MNF Group, Symbio develops and operates a global communications network and software suite. This suite allows many of the world's leading tech innovators to deliver new-generation communications solutions to their customers. This includes giants such as Google, Twilio, and Zoom. Overall, Symbio appears well-placed for growth over the long term thanks to favourable industry tailwinds and trends, its expansion across Asia, and M&A opportunities. Ord Minnett currently has a buy rating and a $7.90 price target on its shares.

The post Here are 3 highly-rated ASX growth shares appeared first on The Motley Fool Australia.