Summary
- Pureprofile informed investors of having a strengthened balance sheet at the end of Q2 FY21.
- The quarter performance exceeded the expectations, as the company generated revenue of $8.2 million in the December quarter.
Technology company Pureprofile Limited (ASX:PPL) released its Q2 FY21 activity report and Appendix 4C for the quarter ended 31 December 2020 on ASX today morning. The company highlighted that its performance had exceeded the expectations in every key parameter. The company pleasingly informed investors that it is well-positioned for its 2021 operations and further years.
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The technology company provides robust data intelligence services on consumer insights to its clients. According to the company release, 90% of the world's data, which we see today was developed in just the last two years. So, the company stated that this exponential growth of data and technology is propelling demand for companies like Pureprofile to provide valuable insights so that businesses can make timely decisions.
Good Read: Pureprofile Limited (ASX:PPL): Connecting markets and consumers through powerful insights
Robust performance across all business units:
Pureprofile clocked a revenueof $8.2 million for Q2 FY21, a record for the quarter which saw all the business units performing exceptionally well. Notably, its total revenue has increased by 26% compared to Q2 FY20. The unaudited EBITDA has risen to a mammoth 866% compared to Q2 FY20, hitting $742K. The company said that the strong growth in the revenue helped it increase the EBITDA for the quarter.
The data firm had recently appointed new CEO Martin Filz, and the company believes that after onboarding Filz, its balance sheet improved substantially. The company was able to attract new talent that helped magnify its revenues and grow its customer base.
Even though the company has strengthened its revenues, it faced challenges during the initial period of the COVID-19 pandemic. Pureprofile maintained its employee base, however, made some changes according to cost management. As the markets have improved, the company is well situated to avail the uplift in demand for data.
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Data companies facing challenges amid new laws:
Tech company stated in the release that its Data and Insight’s revenue was $1.2 million, up 23% compared to Q2 FY20. Although the company witnessed growth in all the regions, APAC experienced 30% revenue growth over Q2 FY20. Its technology platforms grew by a whopping 90%, and the media unit rose by 46% during the Q2 quarter. The momentum was slowly built during the previous quarter to clock this success.
Pureprofile also enhanced its software to offer more robust functionality to its clients. By providing guidance for the future, consumer insights and media advertising company said that it is becoming challenging to access data because of privacy legislation. The consumer preferences are also changing, making it more difficult for the companies to generate their own insights and intelligence. However, Pureprofile is well-positioned to take advantage of this situation. It has new projects in the pipeline across the new and existing markets.
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Share performance
Pureprofile Limited (ASX:PPL) share price is currently trading at $0.028, down 6.667% ,as on Friday 22 January 1:05 PM AEDT. However, in the initial trading hours, its share price climbed more than 13%.
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Please note: the currency is in AUD unless stated otherwise.
