Tech: Investors hit the brakes as quarterly trading updates fall short
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Today marks the ASX’s cutoff date for June quarter trading results to be made publicly available.
In turn, a deluge of tech companies presented their 4C filings this morning in order to meet compliance obligations.
But a general theme emerged following the latest round of results; investors hit the sell button.
It’s a possible sign that companies failed to meet expectations around profit and revenue that the market had set out.
Below is a list of companies that fell sharply in morning trade after reporting their latest results.
TYMLEZ Ltd (ASX: TYM)
The enterprise software company slumped by almost 40 per cent after reporting its cashflow update for the June quarter. The company said its recent focus was on “several key initiatives to drive adoption and use cases of the TYMLEZ Blockchain Solutions Platform”. Cash receipts for the quarter came to $97k while net outflows totalled $748k. As at 30 June, TYM had $2.1m in the bank.
Pointerra Ltd (ASX: 3DP)
The Data as a Service (DaaS) platform, which offers cloud-based solutions for working with 3D data sets, fell 16 per cent in morning trade to 4.6 cents. 3DP said the value of total annual contract value rose to $1.85m in the June quarter, although cash receipts fell to $210k — down from $430k in Q3.
Freelancer (ASX: FLN)
The online crowdsourcing marketplace initially fell by 14 per cent before gaining back some ground, after presenting its 4C filing with a first-half trading update, along with its interim 2019 annual report. At 78 cents, the share price is down from a two-year high of around $1 reached in early July. The company posted unaudited revenue of $28.668 in the six months to June, up around 16 per cent from the prior year comparative period.
Wisr Ltd (ASX: WZR)
The listed fintech consumer finance platform has been one of the best performers in the sector this year, but the share price cooled off from recent highs this morning following the 4C filing. The company said it’s now 18 months into the execution of its hybrid neo-lender strategy, where it facilitates consumer loans with the backing of traditional lenders in the banking industry.
The company said loan originations for the 2019 financial year totalled $68.9m, a gain of 280 per cent from the previous year. Operating cash outflows for the quarter were $4.29m, and the company closed the June quarter with $11.99m cash in the bank.
Yojee Ltd (ASx: YOJ)
The IT supply chain logistics platform presented its June 4C, in what it called a “pivotal quarter for self-growing, recurring revenue versus sales and marketing costs”. Along with its SaaS offering, the company also has a blockchain and AI platform to improve efficiencies in regional freight networks.
Yojee said it signed 10 new software contracts and cash receipts rose to a record-high of $192k in the first quarter. But the stock price fell back to 10 cents in morning trade, a loss of around nine per cent.
On the flipside, it wasn’t all bad news across the sector. Software-for-SMEs platform 9spokes (ASX: 9SP) climbed by 20 per cent to 3 cents following its 4C update.
And tech platform TV2U International (ASX: TV2) jumped by more than 20 per cent to 1.1 cents, although the gain wasn’t 4C related. The company announced it had signed a Heads of Agreement contract with Swiss-based JAY PLUS AG, a company involved in the acquisition of sports content rights.