Event non-ATF Mobile

Summary

  • Most indices on the ASX settled in the red, influenced by the rising COVID-19 cases in the country.
  • Amongst the indices, All Technology Index and S&P/ASX 200 Information Technology were the worst performers.
  • Despite ALU’s robust sales and revenue update, the stocks were negatively influenced by the fear surrounding the second wave of coronavirus pandemic.
  • Pushpay shares dropped ~11% post a release related to the sale of 25% shares of the Company by the Huljich family.

Altium Limited and Pushpay Holdings are amongst the select technology companies that have a direct impact on the S&P ASX All Technology Index. On 14 July 2020, most of the sector indices on the ASX ended the day’s session in red, majorly influenced by the fear surrounding the second wave of the pandemic with an increase in COVID-19 cases.

The report from the Australian government, Department of Health states that in the last 24 hours, there have been 284 new cases of COVID-19 with the total numbers of cases crossing the 10k mark. Victoria had 270 new cases of COVID-19, while NSW and Western Australia had 13 cases and one case, respectively.

Amongst all the indices, S&P/ASX 200 Information Technology (Sector) and S&P/ASX All Technology Index were the worst performers with a drop of 4.01% and 3.44% respectively.

On that note, let us find the latest development of the two tech stocks and see their performance.

Altium Limited (ASX:ALU)

Altium Limited is into the business of development as well as the marketing of computer software for the design of electronic products, headquartered in San Diego, California. The Company focuses on electronics design systems for 3D PCB design & embedded system development.

ALU has been an outstanding performer since its ASX debut. However, in the last year, the shares have delivered a negative return of 7.18%. In the previous six months, ALU shares have provided a negative return of 6.69%. By the end of the day’s trade on 14 July 2020, the shares slipped by 3.612% and settled at A$32.290. ALU has a market cap of A$4.39 billion and around 130.97 million outstanding shares.

Unaudited Sales and Revenue Update:

On 14 July 2020, Altium Limited released its Unaudited Sales and Revenue Update for FY2020 ended 30 June 2020. The Company reported a 10% growth in the revenue to reach US$189 million with a resilient performance across the core business units and the critical regions amid the challenging COVID-19 situations.

ALU, during the period, provided a record growth in new Altium Designer seats. The subscriptions are projected to surpass 50,000 subscribers target. There was a robust sales growth of 14% in new Altium Designer seats. The cash balance by the FY2020 end was US$90 million.

A Word from Altium’s CEO Mr Aram Mirkazemi:

Altium’s CEO Mr Aram Mirkazemi commented that the Company’s strategy to provide attractive pricing and extended payment terms to support clients amid the COVID-19 and to drive volume to aid the pursuit of market dominance remained fruitful for the Company.

He also stated that COVID-19 prevented Altium from reaching its goal to achieve a revenue of US$200 million. However, in such a situation, ALU significantly accelerated its movement towards market dominance & the implementation of the transformative program for the industry.

The Company, during this period, accelerated the roll-out of a new cloud platform, Altium 365 from 1 May 2020 so that engineers can perform their duties from remote locations and connect with anyone. Mr Mirkazemi pointed out that Altium 365 is gaining traction and has more than 2,500 companies and ~5,000 active users on the platform.

Altium took steps like the launch of online selling in May 2020 to expand its reach and improve sales capabilities to reach 100,000 subscribers by 2025. Further, the digital sales of the Company are gaining traction. In the future, it would allow transactional sales to concentrate on value-based selling and higher value deals completely.

Pushpay Holdings Limited (ASX:PPH)

Pushpay Holdings Limited is the provider of the donor management system to the faith sector, non-profit organisations, and education providers majorly in the US and other jurisdiction. The donor management system comprises of donor tools, finance tools and a custom community app.

On 14 July 2020, the shares of PPH slipped significantly by 10.792% and settled at A$7.770. The decline was impacted by the release of the announcement related to the sale of Pushpay shares. PPH has consistently delivered a positive performance since its listing. Presently, the Company has a market cap of A$2.4 billion and ~275.62 million outstanding shares.

Sale of Pushpay shares:

On 14 July 2020, Pushpay announced that the shareholders associated with the Huljich family, on 13 July 2020, had signed a block trade agreement with J.P. Morgan Securities Australia Limited and UBS New Zealand Limited under which the shareholders have sold 25% of the holdings in Pushpay Holdings Limited.

After the sale, the shareholders related to the Huljich family are projected to remain the largest shareholder of Pushpay. The combined relevant interest in the Company stands at 43.2 million shares.

 

 


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