The Ansarada Group Ltd (ASX: AND) share price is rocketing today after the company released its latest quarterly report and investor update.
The post Why is the Ansarada (ASX:AND) share price flying 14% today? appeared first on The Motley Fool Australia. –
Ansarada Group Ltd (ASX: AND) shares are rocketing today after the company released its latest quarterly report and investor update. At the time of writing, the Ansarada share price is trading 13.64% higher at $1.25.
Let’s take a look at what’s boosting the legal and financial software developer’s shares.
Ansarada posted 29% year-on-year (YoY) growth in the third quarter of FY21 (Q3), increasing its total customer numbers to 3,210. This represents an increase of 18% YoY and 6% quarter on quarter (QoQ). The company is currently experiencing a record rate of increase in active customers, with 15 years of continued customer growth.
E-commerce platforms are driving Ansarada’s customer growth, with the rapid expansion of the company in this market increasing in each quarter over the past few years. The significant growth in its e-commerce channel contributed 26% of the total increase in active customers.
An increasing volume of signups is also occurring globally. According to the company, this highlights the scalability and operating leverage of its business.
Ansarada achieved $2.1 million in positive cash flow from operations for the quarter and, as at the end of March, has a $22 million total cash balance with zero debt. The company is launching its newest platform for businesses, Workflow, in early Q4.
The company says Workflow enables customers to enhance their project management by simplifying deal-making processes and legal requirements. According to Ansarada, Workflow is “highly differentiating” against competitor products and will assist the company to capture increased market share and subscription revenue growth.
Differentiation is key since Ansarada operates in the highly competitive software industry. It develops and provides cloud-based software for legal and finance organisations.
Ansarada operates a software-as-a-service (SaaS) model and targets clients that undertake complex transactions. These include legal and accounting firms, corporate and financial advisers, financial institutions and listed or multinational companies.
The company’s software encompasses workflow management, collaboration, secure file sharing, project management, and escrow services. Geographically, the majority of Ansarada’s business is carried out in the Australian market.
Ansarada share price snapshot
Including today’s boost, the Ansarada share price has gained a whopping 635% over the past 12 months. However, the company’s shares have fallen by around 8% year to date. Ansarada has a current market capitalisation of around $89 million.
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.