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Stocks of Exela Technologies Inc (XELA:US or NASDAQ: XELA), a cloud-based software solutions provider, jumped over 179 per cent on Tuesday (March 9) after bagging a contract worth US$ 90 million from a health insurance company.
The Software-as-a-Service (SaaS) company will provide cloud-enabled healthcare delivery solutions through its PCH Global platform to the insurer.
Exela expanded on its previous relationship with the insurance firm that generated over US$ 28 million revenue last year. However, the tech firm has not disclosed its client name in the exchange filing.
Exela’s President Suresh Yannamani stated that the firm offers technology-powered delivery service, payment solutions, and grievance management to enterprises, including banking, healthcare, insurance, etc. This new contract is 10 years long and will help both parties to strengthen their existing association.
Let us delve into this junior tech company’s financials and stock performance:
Exela Technologies Inc (XELA:US or NASDAQ: XELA)
The penny SaaS stock traded heavily on Tuesday, with a one-day volume of 475 million. Its total outstanding shares is 49.23 million.
The stock was priced at US$ 4.61 on Tuesday’s trading close, topping its 52-week high of US$ 3.45 (on January 13, 2021) by 33.62 per cent. It is up 1687 per cent from its 52-week low of US$ 0.2580 after the stock crashed on March 18, 2020.
The market cap is nearly US$ 227 million.
The stock has gained over 270 per cent this year, led by the demand for its cloud-based services. Its return on equity is 64.24 per cent.
Exela shares have swelled by 450.58 per cent in the last 12 months.
Exela Technologies' One-Year Stock Performance Chart. (Source: EODHD/Others)
As of September 30, the company’s total debt amounted to US$ 1.477 billion. It has secured another long-term loan facility worth US$ 145 million on December 17, 2020.
On November 12, 2020, its Board of Directors approved a liquidity improvement and debt reduction decision. According to this plan, its liquidity will stand in the range of US$125 million to U$ 150.0 million, and debt payment will be in the range of US$ 150.0 to US$ 200.0 million.
Exela Outlook
In the fourth quarter of 2020, the firm anticipates revenue to be between US$ 300 million to US$ 310 million against its third quarter revenue of U$ 305.3 million.
For the full financial year 2020, it expects top line to be between US$ 1.28 billion to US$ 1.29 billion.
