Straker just took-off: shares up 25%, revenue skyrockets on vertical growth trajectory
Straker Translations reports huge results in Q3 FY22 with investors watching closely as a clear pathway for sustainable growth solidifies into dollars.
AI-translation business Straker Translations (ASX:STG) has revealed incredibly strong results in Q3, announcing a massive 99% growth in revenue compared to the previous comparable period and improving organic growth.
Straker has reported an increased run rate in the quarter from NZD$30 million to $60 million, putting the company on track for a goal of $100 million in revenue.
This growth is driven both organically and by acquisition, including in ramp-ups across major clients such as IBM, giving Straker plenty of opportunities to continue this trajectory, backed by strong systems and market fit.
Underlined by a solid balance sheet, no debt and cash of $17.5 million, Straker is in an excellent position to service the c.US$57bn global language translation market.
Supported by major shareholders including technology investment firm Bailador, Straker’s successful Q3 results come after a focus on increasing margins and organic growth.
Post-quarter-end, Straker completed its ninth M&A deal with the purchase of IDEST which brings long-term contracts with major global institutions and the opportunity for significant growth.
CEO and founder Grant Straker said these deals form an important part of Straker’s long-term plans and the partnership with IDEST follows in a long line of successful deals, including last year’s Lingotek acquisition.
In Q3 Lingotek reported its strongest quarter in company history.
“We have market-leading technology, a global footprint and offer our customers opportunities to automate and consolidate their global translation requirements with a single provider delivering significant productivity benefits and cost savings,” Straker said.
“The demonstration of accelerating and profitable growth supported by a robust net cash balance sees Straker head into calendar 2022 in a very strong position.
CEO and co-founder Grant Straker says a key part of the company’s growth has been research and development, partnering the increasing demand with a superior and constantly-evolving product.
“Our research and development team have been working on enhancements of the application programming interface (API) link between IBM and Lingotek’s suite of connectors with the RAY platform.
“Job automation has also been a key focus with major changes to vendor assignments and automated tasks for increased efficiency gains,” he told Stockhead.
“Another focal point was significantly improving customer experience with an updated translation validation platform, better file management and a new analytics dashboard in the customer portal.”
Last year, Bailador managing partner Paul Wilson said the company was very interested in Straker’s long-term potential.
“We’re bullish on Straker because they are uniquely positioned as the leading provider of AI data-driven translations to the c.US$57bn global language translation market,” says Wilson.
“It’s a highly scalable platform that utilises best-in-class technology and over 13,000 crowd-sourced freelance translators to deliver high volume translations with superior accuracy for enterprise customers, whilst generating industry-leading gross margins for the business.
“The superior margins and scalability enables Straker to grow both organically via enterprise sales, and inorganically via value-accretive acquisitions.”
This article was developed in collaboration with Straker Translations, 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.