PureProfile shares jump at the opening bell as core earnings surge in December
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Special Report: The company is now looking to consolidate its momentum amid a number of positive sector tailwinds.
Data technology company PureProfile (ASX:PPL) has made an impressive start to morning trade after booking record revenues in the December quarter.
Q2 revenues came in at $8.2m, up 26 per cent on the prior year period, with consistent growth reported across all the company’s major business divisions.
That top-line figure flowed through to a huge jump in core earnings, which came in at $742,000 – a gain of more than 800 per cent and reflective of the strong operating momentum PPL generated in the second half of 2020.
Shares in PPL initially climbed by more than 13 per cent, before easing back into midday trade.
PPL attributed the strong growth in revenue and EBITDA to sound execution on its business strategy across a range of key metrics.
Operating cash outflows improved by $179,000 from the prior-year period to ($301,000).
Adjusted for timing differences for an ATO tax payment of $355,000, PPL would have reported positive operating cash flows of $54,000.
Along with the appointment of new CEO Martin Filz, the company also strengthened its balance sheet with a $10.6 capital raise in the December quarter.
The company also reduced its debt facility from $25m to $3m, leaving it well-placed to attract revenue-accretive talent and capitalise on a number of market tailwinds.
In its presentation accompanying the Q2 sales result, PPL highlighted that across its broader industry, 90 per cent of business data globally has been generated in just the last two years.
The company now serves a portfolio of more than 700 clients spanning corporate agencies, direct brands and government/higher education.
Its product suite includes end-to-end data management services, proprietary data research and virtual technology applications to meet the varied commercial data of its broader client base.
And the global economy emerges from the pandemic, PPL is well-placed to take advantage of the increased demand after taking steps to keep its key sales and development staff on board during the peak of the crisis.
Having expanded its sales teams across the US, UK, Singapore and Australia, the company said it’s now focused on a “very healthy pipeline” of new client opportunities.
Looking ahead, PPL will look to build on its Q2 momentum with the launch of its Data Dashboards and Pure.amplify platforms in the UK.
The company also flagged tailwinds from the “impact privacy legislation is having on the ability for companies to generate their own insights and intelligence”.
“This is resulting in new and exciting data partnership discussions within existing and new markets,” PPL said.
This article was developed in collaboration with Pure Profile, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.