Reporting Season Round Up: The good times roll on for COVID beneficiary stocks

In 2021 many COVID beneficiary stocks actually dropped following their financial results, as investors questioned the sustainability of their rapid growth rates. But that wasn’t the case with this morning’s cohort:

Dropsuite (ASX:DSE)

Dropsuite’s expertise is in global cloud backup and archiving software – critical amidst people working from home and the increased vulnerability of cyber attacks.

The company reported Annual Recurring Revenue of $13.1 million, up 14% from the last quarter and 81% from the same period last year.

It also reported 11% user growth to 575,000, and its first quarter of sustainable positive operational cash flow.

Dropsuite (ASX:DSE) share price chart

Whispir (ASX:WSP)

Whispir is another COVID beneficiary stock. It is a player in the cloud computing space, specialising in communications.

After a nuanced debut in 2019, Whispir shares began to take-off in the early months of the pandemic when it won a Victorian government contract.

The company reported $56.8 million in Annualised Recurring Revenue which was 31.8% up in 12 months and it on-boarded 33 new customers, taking its total to 834.

Whispir (ASX:WSP) share price chart

Adairs (ASX:ADH)

Adairs meanwhile is an ecommerce homewares company. While its year to date sales are 8.5% lower than FY21, they are 14.6% higher than FY20 and its online sales still grew.

It anticipates the hit from store closures in Victoria, NSW, the ACT and New Zealand to be somewhere between $28 and $32 million net of the estimated sales captured online.

But with lockdowns behind it the company expressed confidence of a strong Christmas trading season.

Adairs (ASX:ADH) share price chart

Cellmid (ASX:CDY)

Cellmid (ASX:CDY) was able to make the most of COVID-19 in entering the test kit market, which excited investors. But the Therapeutic Goods Administration’s examination of them didn’t go to plan.

Nevertheless its traditional business of anti-aging cosmetics is in positive shape. It netted $2.23 million in customer receipts and completed the acquisition of BLC.

While the company was affected by hair and beauty salons being closed due to lockdowns it tipped pent-up demand to be unleashed during this quarter.

Cellmid (ASX:CDY) share price chart

Aussie Broadband (ASX:ABB)

Aussie Broadband is not just another COVID beneficiary stock but one of last year’s hottest IPOs, listing at $1 twelve months ago and now sitting at just over $5.

The telco increased its connections to 445,780, up 11% quarter on quarter and up 44% year on year.

It’s revenues for the first quarter also grew 11.3% and it is tipping another 53-60,000 net broadband additions during the quarter.