Dreamscape (ASX:DN8) is in the good books with investors after a strong earnings update this morning.

The company — owner of online site registrar Crazy Domains and web hosting platform Vodien — said it’s now on track for its best annual performance since listing in 2016.

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Full-year net profit is now expected to be in the range of $4.3 to $4.9 million — comfortably higher than the $2.7m reported in FY18 — based on unaudited figures as at March 31.

Shares in DN8 initially rose as much as 50 per cent in morning trade to a 12-month high of 15 cents.

Online growth

CEO Mark Evans said Dreamscape is well positioned to take advantage of the continued expansion in online website domains.

Crazy Domains is an online site registrar that sells hundreds of domain names including .sydney and .menu.

“With the potential for the release of the shortened .au domain registration in FY20, I believe we will continue to capitalise on the momentum we currently have,” Evans said.

He reiterated that previous investments in infrastructure have also provided a platform to keep costs low and maintain steady growth into South-East Asian markets.

Dreamscape said growth in total domain bookings was running around nine per cent in the second half of the 2019 financial year.

“The full benefits of the hard work undertaken by management will emerge in FY20,” the company said.

In other ASX tech news today

Internet service provider Spirit Telecom (ASX: ST1) announced the acquisition of Building Connect, a licensed telecommunications carrier operating a predominantly fixed wireless network. ST1, which pitches its service as an alternative to the NBN, will acquire 100 per cent of Building Connect for an enterprise value of $300,000 paid in shares. Building Connect provides telecom services for 31 commercial buildings and business parks in Western Sydney.

Shares in ST1 were up 5.88 per cent to 18 cents in morning trade.
And defence tech company Xtek (ASX:XTE) has made the first international sale of XTatlas, its real-time surveillance video mapping technology that can be attached to unmanned aerial systems. Shares in Xtek were up 1.12 per cent to 45 cents in morning trade.