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ASX Quarterlies: These tech and health stocks finished the quarter with a bang
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It’s quarterlies season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Tech sector
Jayex Technology Limited (ASX: JTL)
Provider of integrated e-health SaaS healthcare services delivery platforms reported receipts from customers were $1.80m for Q3 FY22 down from $2.02m Q2 FY22.
A total of 883 annual licences were billed in Q3 FY22, up from compares to 776 in Q3 2021.
JTL said trading conditions in the UK continued to slow during the quarter as the UK Governmentpaused its NHS technology investment strategies in the short term due to a nationwide restructuring of its Clinical Commissioning Groups (CCGs) into newly formed Integrated Care Boards (ICBs).
JTL said it now expects a return to larger scale investment in digital technologies to re-commence from Q1 2023.
During the quarter, JTL completed a new distribution agreement with AURES Technologies for the resale of a new Premium Kiosk product offering, enhancing its product portfolio, and will be primarily targeted towards the healthcare community sector.
The company reported an operating cash inflow of $142k for Q3, compared with an outflow of $216k in Q2.
Spacetalk reported total revenue of $2.6 million, a 36% decrease on pcp but Spacetalk’s wearables subscription revenues (Spacetalk App plus JumpySIM) were $1m, a 40% increase on pcp.
Annualised Recurring Revenues (ARR) was $4.0 million, up 41% on pcp, which the company said validates its strategy to enhance the value of its software ecosystem to focus on more recurring revenue generating services such as JumpySIM, launched in September.
While the company said core recurring revenue streams experienced strong growth, the principal cause of the decline in total revenue was a comparative reduction in device sales due to a large UK ‘in-fill’ in order in Q1 FY22.
Spacetalk is a mobile phone, GPS tracker and watch all-in-one wearable device. The device is made for children, and can make and receive calls from a set of contacts you choose in the AllMyTribe smartphone app.
The freelancing and crowdsourcing marketplace said cash receipts were down 1.4% on the pcp at $11.2m, and that its Gross Merchandise Value (GMV) was $31.5m, down 5.1% on the pcp.
The company put this down to series of events that caused the macroeconomic environment to sharply deteriorate from May, including the crypto crash which “took with it a fair amount of millennial wealth, and this bled into a broader tech wreck.”
They also mentioned inflation, the skyrocketing US dollar plus the war in the Ukraine – which cost around ~3% of GMV.
On the positive side, FLN saw a tailwind 7.0% in 3Q22 as the Australian dollar depreciated against the USD from an average of 0.7349 to 0.6835.
“A poor macroeconomic environment will prove to be a good thing for Freelancer, as we saw in the GFC and in the early stages of Covid when global lockdowns occurred,” the company says.
“Businesses are looking to cut costs at a tremendous rate and cutting back staff, many more people will go online looking for a job, and many startup businesses will form to bridge people and companies through bad times.”
Health sector
The mobile mini X-ray company received $4.4m in customer receipts for the quarter, finishing up with a case balance at 30 September of $10.4m.
They secured a long-term strategic relationship with Varex Imaging, the largest independent manufacturer of X-ray tubes globally who spent $7.5m for 9.9% of Micro-X at a 10% premium.
“The collaboration also delivers us a total of $15M of funding in a much less dilutive structure, enabling us to remain on course with our four product-line strategy,” MD Peter Rowland said.
The company also nabbed a US$5m technology licence fee (US$1m received and balance over next 12 months), started offering its next generation Micro-X ‘Rover Plus’ to customers in USA and saw the US Department of Homeland Security exercise its option to extend the Checkpoint contract – worth an additional US$0.43m.
The e-commerce platform sells food, health and well-being products into seven countries globally and saw a 9% increase on the pcp for cash receipts during the quarter at $3.92m – a 106% increase from Q1 FY23.
During the quarter, RLG launched the first New Zealand OTC (Over The Counter, without prescription) online pharmacy store in China and the company was also chosen by Santander UK as China and Australia market entry provider for its clients.
The Santander Bank has an established global banking footprint and over 150 million customers and its Navigator programme fits perfectly with RLG’s Marketplace platform to assist UK businesses to enter new markets such as China.
Post quarter end, the company launched its own Health & Wellness Brand – VORA – “Good for You, Good for the Planet. Good Business”.
VORA is targeting the growing global demand for healthy, sustainable food products, with the brand launching vegetable protein products to service high-demand and high growth markets in China and South East Asia – leveraging the high regard for Aussie agricultural and foot products.
The idea is that brand ownership gives RLG the opportunity for increased margins on its own products and the ability to service identified demand rapidly.
RLG also plans to leverage its customer databases built in China over time to sell VORA products to a qualified customer base.
JTL, SPA, FLN, MX1 and RLG share prices today:
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