3 Tech stocks That Have Beaten the Odds – SPT, NXT and ALC

  • Aug 09, 2020 AEST
  • Team Kalkine
3 Tech stocks That Have Beaten the Odds – SPT, NXT and ALC

Summary

  • Tech stocks, along with healthcare and consumer staples, have been the saving grace for an otherwise struggling economy.
  • Merchant sales volume for Splitit Payments witnessed a growth of 260% year-on-year, primarily due to increasing demand for its funded model during the quarter ended 30 June 2020.
  • The demand for NEXTDC’s data centre services exceeded its expectations and contracted commitments increased by around 4MW at its NSW data centre facilities.
  • ALC delivered robust sales performance in the final quarter and signed new contracts, including a $1.47 million agreement with NHS Fife over five years.

Some technology stocks have seen an incredible rally from the lows during March, defying all the odds in the market dominated by the aftermath of COVID-19. The recent growth in tech stocks is not limited to information technology companies but encompasses tech stocks across various sectors as well, like healthcare, financials, etc.

There have been opportunities aplenty for the tech sector amid the unprecedented scenario, and several tech players have made the most of it. From playing a part in telehealth and telemedicine solutions to addressing contactless delivery and payment modes, tech players have been active everywhere in the market.

GOOD READ: Tech ETFs Post Astounding Returns as Technology Sector Makes Moolah

Here, we discuss three tech stock from financial, information technology as well as healthcare sectors that have defied all odds during the COVID-19.

260% Year-On-Year Growth in Merchant Sales Volume for Splitit

A payment method solution, Splitit Payments Ltd. (ASX:SPT) enables customers as well as merchants in the following ways:  

  • Customers- to pay for purchases with an active debit/credit card by dividing the cost into interest and monthly payments (fee-free) without added registrations or applications.
  • Merchants- to provide their customers a convenient payment method for purchases with monthly instalments option and instant approval.

SPT recorded a growth of 260% year-on-year in merchant sales volume (MSV) during the quarter ended 30 June 2020 primarily driven by increasing demand for its funded model. The rapid growth trajectory of Splitit’s record MSV and revenue during the quarter was governed by Accelerating merchant demand, strong foundations, and great shopper experience.

Growth Metrics (Source: ASX Announcement)

Moreover, SPT has seen impressive growth in its largest markets with North America up 261% on a year-on-year basis, and Europe was up 240% on a year-on-year basis.

On the other hand, robust growth was seen in customer numbers, with total merchants surpassing 1000, up 104% YoY, and over 300,000 total shoppers, up 85% YoY.

SPT believes that it is just the time for getting started and the Company anticipates progressive growth with a focus on delivering significant value as well as benefits for its customer.

SPT is of the view that consumer awareness and preference are growing on the back of its offering ways for credit cardholders to utilise better their existing credit, coupled with smooth checkout online. Simultaneously, there are considerable improvements to the shopping cart conversion rates of merchants, furthering merchant demands for SPT’s solution.

SPT looks forward to continuing focus on large merchant acquisition and to execute its new strategic partnerships with Mastercard and Visa.

On 5 August, the Company received firm commitments to raise $90 million via institutional placement. The proceeds will aid Splitit’s high-growth strategy and provide the funds required for sales and marketing activities, and product and technology development.

SPT stock last traded at $1.515, down 2.885% on 7 August 2020. The Company has a market capitalisation of $554.85 million. Interestingly, SPT has delivered impressive returns of 252.33% and 194.17% to its shareholders in the last three months and six months, respectively.

Accelerated Demand for NEXTDC’s Data Centre Services

Another tech stock that has beaten all odds during the COVID-19 period is Australia's leading independent data centre operator, NEXTDC Ltd. (ASX:NXT).

Presently, NXT stock was noted trading very close to its 52-weeks high price of $12.100. On 07 August 2020, the stock settled at $12.030, up by 0.25% intraday and has a market capitalisation of $5.47 billion. Moreover, the stock has delivered ~93% returns to its shareholders in the last one.

Importantly, NXT forms the part of ASX100-listed technology companies and empowers business transformation through offerings like advanced data centre outsourcing solutions, connectivity services, and infrastructure management software for businesses.

Recently, NXT witnessed an accelerated demand for its data centre services that exceeded its expectations. In July 2020, NXT reported that its contracted commitments had increased by approximately 4MW, to more than 36MW at its NSW data centre facilities.

Significantly, NXT’s customer commitments plus expansion options were seen reaching 60MW capacity at its NSW data centres.

The Company shared its willingness to conclude the S2 fit out to a total planned capacity of 30MW after these fresh customer commitments.

Off late, NXT has appointed Dr Eileen Doyle to its board as a non-executive director. Dr Doyle’s appointment shall take effect from 26 August 2020.

ALC Adds $3.7 million New Contracted Revenue in The Quarter

A healthcare technology company transforming healthcare with smart, intuitive technology solutions, Alcidion Group Limited (ASX:ALC) stock ended the day’s session on 7 August 2020 11.111% higher at $0.150.  

The Company operates in the evolving world of healthcare to unlock new insights, and drive innovation.

ALC has endured through challenging market conditions during the final quarter of FY20 ended 30 June 2020 due to the COVID-19 Pandemic. However, the Company has managed to deliver a robust sales performance in the final quarter with $3.7 million new contracted revenue added in the quarter, which is over double the prior corresponding period.

Notwithstanding the delays in the signing of some contracts due to COVID-19, ALC’s pipeline of potential business has continued to grow, and the Company is optimistic about future growth.

Alcidion signed new contracts and renewals during Q4 FY20 including a significant extension and renewal agreement with a value of $1.47 million over five years signed with NHS Fife to extend Patientrack across all facilities.

Source: ASX Announcement

In addition to this, an initial 12-month $0.56 million contract was signed with Sydney Local Health District for implementation of Miya Precision to assist in remote monitoring of COVID-19 positive patients.

In the long-term, Alcidion expects to contract an additional $17.0 million to be recognised over four years to FY2025.

Alcidion has over 25 years of combined healthcare experience and offers breakthrough healthcare solutions.

GOOD READ: Digital transformation in healthcare – Lens on ALC, HMD

Bottomline

Overall, we have seen how various tech stocks have managed to ride out the COVID-19 storm. These stocks catering to varied sectors like healthcare, information technology as well as financials have remained on top during times which were tough sledging for many companies.

NOTE: $ denotes Australian Dollar unless stated otherwise.

 


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