- SPA share price is at its one-month’s high, after today’s trade closed on ASX.
- Spacetalk has reported a 50% growth in total revenue on a pcp basis.
- Spacetalk has reported promising signs even from newly started North America and Nordic regions.
Smart wearables and communications solutions provider, Spacetalk Ltd. (ASX:SPA) shares have closed the day’s trade over 15% above previous close. SPA shares witnessed a peaked buying interest after it reported growth in its H1-22 revenues. SPA shares ended day’s trade on ASX, at AU$0.190 each, which is its price peak in the last 30 days of trade.
How has H1-22 been for Spacetalk?
- For H1-22 ending 31 December 2021, Spacetalk’s total revenue grew 50% on a pcp basis and by 78% over previous half.
- Revenue growth is majorly accrued to geographic diversification, for wearables which are now sold in Australia and eight other countries including New Zealand, UK, Canada and US.
- The sales from Nordic and North American regions which began recently in November 2021, have also shown promising signs for Spacetalk.
- The Annualised Recurring Revenue (ARR) from company’s App monthly subscriptions was also up 52% on a pcp basis.
- SPA’s device growth was accompanied by reduced marketing expenses.
- However, its’ schools business revenue went down 10% due to Covid related disruptions, though the business remained cashflow positive.
- During the reported half, SPA also commenced online distribution of products in Europe, America and Canada.
- It also raised AU$9.5 million of new equity capital for working and growth capital needed for Spacetalk wearables, app and eco-system.
The strong revenue growth across business segments and expanding geographic reach of SPA’s business has worked well for its share price today. Investors thus seem to have turned bullish over SPA shares, as reflected by the tremendous buying volumes seen today on ASX.
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