Nitro (ASX:NTO) share price pushes higher following strong Q2 update

Here’s how this tech company is performing in FY 2021…
The post Nitro (ASX:NTO) share price pushes higher following strong Q2 update appeared first on The Motley Fool Australia. –

The Nitro Software Ltd (ASX: NTO) share price is rising on Wednesday.

In morning trade, the document productivity software company’s shares are up 1.5% to $3.50

Why is the Nitro share price trading lower?

The Nitro share price is trading higher today following the release of a solid second quarter result.

According to the release, Nitro’s annualised recurring revenue (ARR) reached US$33.8 million at the end of June. This was an increase of 56% over the prior corresponding period.

This means that Nitro is on course to deliver on its FY 2021 guidance for ARR of between US$39 million and US$42 million.

Management advised that this was driven by the continuation of its sales momentum. This includes key customer wins and expansions such as Silicon Valley Bank, FLSmidth & Co, Canadian Natural Resources, Thermo Fisher Scientific, and AmSpec.

It notes that the strong demand for the Nitro Productivity Platform continues to be underpinned by the global shift to remote and digital work, accelerated by the COVID-19 pandemic. There were more than 1 million eSign requests sent in the first half of FY 2021. This is the same number of eSign requests that were sent for the entirety of FY 2020.

Nitro ended the period with a cash balance of US$38.8 million with no debt.

SaaS model transition continues

Also giving the Nitro share price a boost today was the strong progress the company is making with its transition to a SaaS business model.

The release reveals that subscription revenue comprised 63% of total revenue for the first half. This compares to 48% in the prior corresponding period. Furthermore, in the larger Business sales channel, 85% of revenue was from subscriptions.

Nitro’s Co-Founder and Chief Executive Officer, Sam Chandler, commented: “The evolution of the Nitro Productivity Platform has continued to accelerate across the past quarter, with major milestones that have enabled us to offer a full suite of powerful productivity solutions to meet our customers’ needs.”

“In June, we announced the acquisition of PDFpen, adding Mac, iPad and iPhone capabilities to our platform and opening up new market opportunities. This month we have unveiled a comprehensive new pricing and packaging structure that, for the first time, includes the full commercial availability of Nitro Sign as a standalone subscription product offering.”

“With these developments, our Platform offers customers the flexibility to tailor individual productivity solutions that remove barriers to growing their businesses in this fast-changing, post-COVID world,” he added.


As mentioned above, Nitro is on track to achieve its FY 2021 ARR guidance of between US$39 million and US$42 million.

In addition, the company has upgraded its revenue guidance to be between US$47 million and US$50 million. This compares to the prior guidance range of between US$45 million and US$49 million. Management notes that the favourable revenue expectation is due to higher return on investment from some of the company’s first half initiatives.

Another positive is that its full year operating EBITDA loss is not expected to be as great as previously expected. It now expects a loss within the range of US$9 million to US$11 million, compared to the previous guidance range of US$11 million to US$13 million.

This is due largely to its stronger revenue performance and partly from cost efficiencies and the timing of personnel hiring.

The Nitro share price is up 70% over the last 12 months.

The post Nitro (ASX:NTO) share price pushes higher following strong Q2 update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nitro right now?

Before you consider Nitro, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nitro wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

3 stellar ASX growth shares that could be buys in August

Nitro Software (ASX:NTO) share price rises on Salesforce news
2 very exciting ASX tech shares you need to know

3 ASX tech shares for the post-COVID world

2 quality ASX growth shares that could be buys in July

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!