WTC, XRO, NXT: A look through 3 ASX technology stocks

Highlights:

• In its 1H FY23 results, WiseTech Global Limited (ASX: WTC) concluded the acquisition of a 100% stake in Envase Technologies.
• During the half-year period, Xero Limited (ASX: XRO) subscribers grew by 16% to 3.5 million.
• In its 1H FY23 results, NEXTDC Limited (ASX: NXT) revenue increased by 10% to AU$159.7 million from pcp.

The S&P ASX All Technology index was trading low by 0.48 to 2,282.10 on Monday, 15 May 2023, at 4:13 pm AEST. Simultaneously, three technology companies- WiseTech Global Limited (ASX: WTC) slipped by 0.267%. However, Xero Limited (ASX: XRO) and Next DC Limited (ASX: NXT) were up by 0.149% and 0.424%, respectively.

Let’s now look through 3 ASX technology stocks- WTC, XRO and NXT in detail.

WiseTech Global Limited (ASX: WTC)

The leading provider of software solutions fell by 0.267% and was trading at AU$71.200 on 15 May, at 4:13 pm AEST.

In its 1H FY23 results ended 31 December last year, its total revenue (from ordinary activities) increased 35% to AU$378.2 million versus AU$281million in pcp on the back of rising usage by current consumers, new product releases, etc.

In the same period, NPAT rose 41% to AU$109.0 million compared to AU$77.4 million. Basic earnings a security was elevated 40% to 33.4 cents a security. For the interim period, WTC announced a 100% franked distribution of 6.60 cps, paid on 6 April this year.

In February 2023, WTC concluded the acquisition of a 100% stake in Envase Technologies. In the same month, the company made another acquisition of a 100% stake in Blume Global.

Xero Limited (ASX: XRO)

An international small business platform with 3.5 million subscribers consisting of workforce management, core accounting solution, etc was up by 0.149% and was trading at AU$93.980 at 4:15 pm AEST.

In its 1H FY23 results ended 30 September last year, XRO clocked revenues (from ordinary activities) at NZ$658.5 million, which was 30% up YoY. In the same period, total customer lifetime value rose by 30% to NZ$13 billion. XRO’s subscribers grew by 16% to 3.5 million. The company’s EBITDA got a boost of 11% to NZ$108.6 million against pcp.

On the segments front, ANZ’s contribution was up by 26% to NZ$51.7 million in 1H FY23. ANZ contribution margin percentage was affected by Xerocon Sydney but stayed widely consistent with the pcp. The international division’s contribution for the period rose by 34% to NZ$71.8 million relative to pcp.

NEXTDC Limited (ASX: NXT)

The technology company and Asia’s most innovative Data Centre-as-a-Service provider increased by 0.424% to AU$11.830 on Monday, at 4:16 pm AEST.

In its 1H FY23 results ended 31 December 2022, NXT’s top-line increased by 10% to AU$159.7 million from AU$144.5 million in pcp. In the given period, the company’s net loss was AU$2.8 million declining from AU$10.2 million in pcp.

During the 1H FY23 period, the company’s contracted utilisation rose by 3.2 MW to 84.2 MW. Interconnections were up by 1,422 to 17,301 (representing 7.9% of recurring revenue).

NXT secured a new site at Sydney-based S5, which provides forthcoming expansion in the Macquarie Park availability zone (settled in 1H FY23). The company also secured Melbourne-based M4, which provides future expansion in the Port Melbourne availability zone (settled in initial 2H FY23).