How these 4 ASX tech stocks are performing lately

Highlights:

• The economic contribution of Australian tech sector to GDP has increased over the years.
• On Tuesday (18 October 2022), the information technology index closed over 4% higher.

The Australian technology industry is one of the biggest tech industries in the southern hemisphere, according to an analysis shared by the Australian Trade and Investment Commission. If the technology sector is classified as a single industry, it is the third-largest contributor to Australia's GDP, following health and construction sectors. As per the same report, the economic contribution of the tech sector to GDP has reached AU$167 billion in 2020-21, a rise of 79% since 2016-17.

On Tuesday (18 October 2022), ASX 200 information technology index (INDEXASX:XIJ) closed 4.19% higher at 1,455.60 points. The index has gained 534.10 points in the past five years. However, in the past twelve months, the index has lost 37.25%. On a year-to-date (YTD) basis, the benchmark has shed 33.32%.

Meanwhile, the Australian share market’s benchmark index, ASX 200 closed 1.72% higher at 6,779.20 points on Tuesday. The index has gained 2.02% in the last five trading sessions and has lost 8.08% in the past year.

Yesterday, ten of eleven significant sectors closed in the green. The information technology sector reported the highest gain, while the energy sector closed 0.60% down.

On this note, here we discuss the recent performance of ASX tech stocks. The stocks are Computershare Limited, Connexion Telematics Ltd, WiseTech Global Limited, and Xero Limited.

Computershare Limited (ASX:CPU)

Headquartered at Victoria, Computershare was established in 1978 to offer computer services to other businesses which aim to automate their processes. The company expanded its share registry business by expanding into stakeholder communications, employee equity plans, fund services, corporate governance, deposit protection, class action administration and mortgage servicing.

In the financial year 2022 (FY22), the management revenue increased by 12.2% to AU$2.6 billion and management EBIT grew by 19% to AU$530.9 million. Margin income increased 74.3% to AU$186.5 million. The company declared a final dividend of 30 cents per share, up 30%.

Computershare's share price closed 0.36% higher at AU$25.17 per share on Tuesday. With this, in the last five trading sessions, the share price has dropped 0.24%, and in the past six months, it has lost 2.25%. In the past one year, the share price has increased 38.53%, and on a YTD basis, it has increased by 23.62%. Five years' gain stands at 71.81%.

Connexion Telematics Ltd (ASX:CXZ)

Headquartered at Victoria, Connexion is focused on in-vehicle infotainment services. Also, the company's technology is focused on vehicle data analytics services.

In July 2022, Connexion shared its financial results for the quarter ending 30 June 2022. During the quarter, the company reported a net profit before tax of AU$180k (the previous quarter's net profit before tax stood at AU$89k). Gross profit increased by 20% from the previous quarter to AU$795k during the period, and recurring revenue grew.

The final quarter of FY22 continued the trend observed in the previous quarter. The revenue grew from feature-enhancement delivery and connexion subscription. Revenue deteriorated from the low level of global vehicle inventories. Also, expenditure increase with reinvestment in the product and team.

Connexion shares closed on Tuesday at AU$0.010 apiece. In the past one year, the company’s share price has dropped 50%.     

WiseTech Global Limited (ASX:WTC)

Image source: © Rafaelhenriquepress | Megapixl.com

Headquartered at New South Wales, WiseTech provides software solutions to the logistics industry globally.

In FY22, WiseTech Global's signature product CargoWise’s revenue increased 37%, excluding forex. Total revenue grew 26% (excluding forex), EBITDA surged by 54%, and free cash flow grew by 71%. During the year, the company announced a final dividend of 6.40 cents per share, 66% higher than in FY21. With this, the full-year dividend reached 11.15 cents per share, 71% higher than the previous year.

In FY23, the company expects 20% to 30% growth in revenue and 21% to 30% growth in EBITDA.

WiseTech’s shares closed 4.77% higher at AU$57.72 per share on Tuesday. In the past five trading sessions, the share price has increased 7.89%. In the past year, the share price has recorded a rise of 8.27%, and in the past six months, it has grown 24.53%. In the past one month, the share price surged 2.07%. In the past five trading sessions, WiseTech’s share price has increased 448.67%.  

Xero Limited (ASX:XRO)

Headquartered at New Zealand, Xero offers accounting software and tools to bookkeepers, accountants, and small businesses. The software offered by the company allows customers to pay bills, bank connections and claim expenses and many more.

During FY22, the operating revenue of Xero has grown 29%, total subscribers increased by 19%, EBITDA has surged by 11%, and gross margin percentage grew by 1.3 percentage points. Reportedly, free cash flow during the year fell by 96%.

Shares of Xero closed 5.89% higher at AU$76.77 on Tuesday. In the last five trading sessions, the share price has increased by 7.25%. In a year, Xero's share price had recorded a fall of 46.74%, and in six months, it has lost 23.95%. On a year-to-date basis, the share price has dropped 47.50%. In the last five years, Xero shares have grown 155.22%.