ASX Tech Stocks: 3D player Vection ups total contract value by 80% for September quarter
Real-time software player Vection has continued its growth momentum, trading up 2.8% today after flagging an 80% increase in total contract value (TCV) compared to the September quarter.
Through a combination of 3D, Virtual Reality, Augmented Reality, Industrial IoT, AI, ICT and CAD solutions, Vection helps companies and organisations to innovate, collaborate and create value – and it said the addition to the TCV metric was predominantly attributable to adoption of solutions suite in the media and communications sector.
The company’s FY22 TCV stands at around $9 million, and it says it has a strong pipeline of opportunities across multiple verticals and industry segments going forward — underpinned by the ‘Metaverse’ trend.
Plus, 8,493,548 unlisted options have been exercised for a consideration of $951,277.40, bringing total cash at bank to ~$7.8 million which Vection will use to accelerate its global growth and M&A strategy.
Up 3.1% today was Identitii after announcing that Payble Pty Ltd will soon commence payment of a $1 million assignment fee to the company for intellectual property (IP) previously developed by Identitii and now owned by Payble.
The fee will be paid in monthly instalments over the next two years, commencing 30 November 2021, and will ramp-up as Payble revenues grow.
“Monetising previous investments in technology that no longer align with our core business is an important part of Identitii’s business strategy, and I’m thrilled to announce today’s milestone as we start to recognise income from Payble,” Identitii CEO John Rayment said.
“This return on investment is validation of our monetisation strategy and we are increasingly optimistic that Payble will continue its early success as it looks to increase revenue and expand into new markets.”
Following the recent additional investment in Payble by x15ventures, Identitii’s ownership share has reduced to 39.3% on a fully diluted basis.
Unchanged today was 9Spokes after announcing one-off costs of around NZ$484,000 in relation to its response to a non-binding indicative proposal in July.
The company spent the money on a range of work streams to advance the indicative proposal and engaged financial and legal advisors based on the credibility of the interested party – but has since been advised that the interested party will not be progressing the proposal.
A total of NZ$339,000 of the costs were incurred in the last two quarters and will be included in 9Spokes’ interim financial statements for the half year ending on 30 September 2021 which are expected to be released during the week commencing 29 November 2021.
Down 7.36% was transaction management platform Plexure, after reporting a net loss of $8.5 million in its interim results for the six months ending September 30, 2021.
The company said this covers the period prior to its merger with TASK, which it acquired for $2.1 million.
Plexure’s total revenue for the period was NZ$13.5 million, which was 7% lower than last year. Operating expenses grew by $3.0 million to $21.8 million as the company pursued a cost intensive strategy to invest for growth.
This strategy was predicated on strong sales growth – which has not occurred.
However, TASK has continued to secure contracts in the last three months including new client wins and extensions to existing client agreements, including Compass Group, Gloria Jeans, Sky Stadium, Bakers Delight, and Starbucks.
An operational review of the combined group has been completed and the company is confident that the business will have long term benefits for shareholders.
The Hybrid cloud provider was down 5.6% after announcing it had completed a $2.75 million placement, issuing 17,187,500 shares at 16c per share to support ongoing growth after the recent acquisition of Blue Sky Telecom for $2 million.
Nexion CEO Paul Glass said the funds give the company a cash buffer in the wake of its recent M&A activity.
“Blue Sky Telecom Pty Ltd added $3.4 million in annual recurring revenue to the group and provided the additional technicians needed to deliver the growing pipeline of work we had sold in the past three quarters,” founder and CEO Paul Glass said.
“This represented an extremely attractive acquisition for NEXION but required us to use a material portion of the company’s cash balance raised at the IPO earlier this year.”
“NEXION’s growth has been outstanding, posting record quarterly revenue in Q1 of FY22 and increasing the recurring revenue base by almost 300% in just three quarters since IPO.”
“This placement will allow NEXION to continue along its strong growth trajectory.”
The company says its now well capitalised and is striving to achieve a positive EBITDA position by the end of the current financial year.