A sneak peek at some ASX-listed tech stocks

Highlights:

• The ASX 200 has been trading in the green since Wednesday (26 October 2022) morning.
• Information Technology was up 0.61% at 1,441.40 around 11:13 AM AEDT.
• Software stocks are part of the Information Technology sector.

The Australian stock market index, the ASX 200, has been buzzing in the green territory since Wednesday (26 October 2022) morning. At 11:05 AM AEDT, the index was up 0.51% at 6,833.40 points. In the past five trading sessions, the index has gained 0.54%, and in one month, it has gained 5.68%. The yearly fall is 8.15%, and on a year-to-date basis, it has fallen 9.92 %.

Around the same time, eight out of eleven sectors were in the green, along with the benchmark index. The a-REIT sector registered the highest gain, 2.14%, while the Consumer Staples sector marked the highest fall of 1.10%.

In this piece, the performance of some ASX software stocks is discussed. Software stocks are part of the Australian Information Technology sector. At 11:08 AM AEDT, this sector was up 0.27%.

The stocks discussed in this article are WiseTech Global Limited, Xero Limited, Altium Limited, Technology One Limited, and Iress Limited.

WiseTech Global Limited (ASX:WTC)

WiseTech offers software solutions to the supply chain industry globally. According to the company’s website, WiseTech software solutions are known for their global reach, deep compliance capabilities, comprehensive integration, extensive functionality, and powerful productivity.

The total revenue of WiseTech during the financial year 2022 (FY22) increased by 25%, and the EBITDA grew by 54%. The statutory NPAT surged by 80%, while the underlying NPAT zoomed up by 72%. As per the announcement, CargoWise’s revenue (excluding forex) grew by 32%, and 10 new global customers were added during the year.

Commenting on the growth outlook, Richard White, the founder and CEO of WiseTech, said,

For FY23, the company expects to report revenue of AU$755–AU$780 million, a growth of 20%–30%. The expected EBITDA is AU$385–AU$415 million, a growth of 21%–30%.

Today, WiseTech shares were spotted trading 0.44% higher at AU$57.07 apiece at 10:49 AM AEDT.

Xero Limited (ASX:XRO)

Xero offers accounting software to small businesses, bookkeepers, and accountants. The software assists in establishing a connection between small business owners and their advisors and banks at any time.

The company reported a 29% growth in its operating revenue to AU$1.1 billion and an annualised monthly recurring revenue increase of 28%. Its total subscribers surged by 19%, and its EBITDA reached AU$212.7 million from AU$191.2 million.

Image source: © Nicoelnino | Megapixl.com

During the year, the company completed the acquisition of LOCATE Inventory, TaxCycle, Tickstar, and Planday, and made significant progress. The top line contribution from these companies was AU$41.7 million.

Today, Xero shares were spotted trading 1.20% higher at AU$77.32 apiece at 10:50 AM AEDT.

Altium Limited (ASX:ALU)

Altium develops and sells software for designing electronic products. The company was established in 1985 as a PCB design tool provider.

The software company registered a 23% growth in revenue and a record growth of 85% for Octopart. Profit after tax increased by 57%, and EPS increased by 57%. In a statement, Altium said that it had outperformed its expectations and the financial results for 2022 were ahead of its financial targets for margin and revenue.

In FY23, the company anticipates total revenue growth of 15%–20%. This includes 15%–18% growth in its electronic design software business and 20%–30% growth in its engineering cloud platform business. The forecasted underlying EBITDA margin is 35%–37%.

Today, Altium shares were spotted trading 0.20% lower at AU$34.51 apiece at 10:51 AM AEDT.

TechnologyOne Limited (ASX:TNE)

According to TechnologyOne’s website, its Global SaaS ERP Solution transforms the way businesses communicate with their communities and customers with access to their enterprise data from anywhere at any time, and from any device.

TNE recorded an 18% growth in profit after tax and a 14% growth in profit before tax during the first half of FY22. Total revenue surged by 19%, and revenue from continuing SaaS business increased by 21%. Reportedly, R&D expenditure surged by 20% to AU$41.5 million, which is 24% of revenue.

In the full year 2022, the company expects net profit before tax to increase by 10%–15% compared with FY21.

Today, TechnologyOne shares were spotted trading 0.42% lower at AU$11.83 apiece at 10:52 AM AEDT.

Iress Limited (ASX:IRE)

The software offered by Iress assists financial service companies to perform better. The company operates across Africa, North America, the Asia Pacific, and the UK and Europe. 

The company reported a 6% rise in underlying revenue, a 6% surge in underlying segment profit. As reported by the company, the lifetime value of the Iress client relationship stood at AU$25.7 billion (as of 18 August 2022).

In FY22, the company expects to register a segment profit of AU$177–AU$183 million. The anticipated increase in segment profit over the previous corresponding period is 7%–10%.

Today, Iress shares were spotted trading 1.80% higher at AU$9.64 apiece at 10:51 AM AEDT.