- Australia’s technology sector is one of the major earners for the country.
- Kiwis can explore a range of tech companies in Australia.
- Block, Xero and WiseTech Global are some of the ASX-listed tech stocks.
Kiwis can consider investing in the Australian market as it provides a wide range of options and is a huge market for them to expand their portfolios.
The Australian tech sector is a major earner for the country and is expected to become a $19-billion market by 2030. The COVID-19 pandemic particularly accelerated a shift towards digital trends despite economic disruptions imposed by the pandemic.
Tech stocks often show above-average growth opportunities and trade on high-earning multiples.
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On this note, let’s have a look at these 3 ASX-listed tech stocks that can be explored by Kiwis.
Block Inc (ASX:SQ2)
Technology company Block Inc (ASX:SQ2) has a market cap of $69.02 billion.
Block generated a 34% rise in its gross profit YOY to US$1.29 billion in Q1 of 2022 compared to pcp, of which AfterPay contributed US$92 million in February and March, with US$46 million recognised in each of CashApp and Square. However, the group’s net revenue fell 22% in the period.
The Group’s Bitcoin revenue also fell 51% to US$1.8 billion in the quarter compared to the 3 months ended 31 March 2021. The Bitcoin price remained stable during the quarter, and it also lowered the client demand and trading activity in the quarter.
On 19 May, at the time of writing, SQ2 was trading at $116.92, down 1.67%.
Xero Limited (ASX:XRO)
Cloud-based accounting software firm Xero has a market cap of $13.26 billion.
The Group delivered a 29% rise in operating revenue to $1.1 billion and a 1.3% rise in the gross-margin percentage to 87.3% in FY22. Its total subscribers rose 19% to 3.3 million with EBITDA surging 11% to $212.7 million in FY22 on pcp.
The Group acquired LOCATE Inventory, Tickstar, TaxCycle as well as Planday in the financial year. In FY22, total operating expenditures are expected to be between 80% and 85%. XRO intends to expand its worldwide small-business platform and reinvest the profits.
On 19 May, at the time of writing, XRO was trading at $85.92, down 2.83%.
WiseTech Global (ASX:WTC)
A leading developer and provider of software solutions to the logistics execution industry, WiseTech Global has a market cap of $13.6 billion.
WTC delivered robust revenue growth, propelled by increased customer usage, market penetration and technology adoption. It reported a 18% rise in revenue to $281 million and a 75% increase in the operating profit to $107.6 million in the 6 months to 31 December 2021.
WTC completed 2 acquisitions namely, Inobiz and Hazmatica, which will be integrated into the CargoWise ecosystem to benefit its existing CargoWise customers.
The Group expects the FY22 revenue to be between 18% to 25% and EBITDA between 33% to 43%.
On 19 May, at the time of writing, WTC was trading at $40.96, down 1.75%.
The Australian tech sector is likely to show growth in coming years due to a rapid shift towards AI, fintech and cloud computing.
(NOTE: Currency is reported in AU Dollar unless stated otherwise)