Technology stocks

Four popular NZX tech stocks to explore

New Zealand’s tech sector has an important role to play in the country’s digital transformation. During the pandemic, New Zealand has experienced a severe labor shortage in this sector. It is a high growth sector and according to the most recent data available, the size and scale of the sector is NZ$12.7 billion and NZ$972 million respectively. .

According to a report, the top priority for this sector is to develop the digital workforce in the medium and long term.

With that in mind, let’s take a look at the 4 popular NZX-listed tech stocks and how they’re doing.

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ikeGPS Group Limited (NZX:IKE)

IKE is a software company that designs software related to data capture. In its Q3FY22 results, it reported 50% revenue growth and a 180% increase in new business.

According to Glenn Milnes, CEO of IKE, the third quarter proved to be the strongest period for the company. It won contracts worth over NZ$23 million compared to NZ$9.3 million in FY21. This gives the company growth momentum for the remainder of FY22 and FY23. In January, it signed its latest contract with a new US-based utility customer.

Also read: ikeGPS (NZX: IKE): What is its latest contract with the electricity consumer?

On February 9, the stock was trading at NZ$0.80 at the time of writing.

Plexure Group Limited (NZX:PX1)

PX1 develops mobile engagement software. Last year, in December, the company completed its consultation process. It revealed it was undertaking an operational streamlining exercise in which it reduced 55 non-technical roles with a saving of over NZ$8 million.

The restructuring will make it more suitable for a merger with TASK. The company said customer growth could be driven by TASK’s existing base and customer pipeline.

Read: Plexure (NZX:PX1): Why did the company suffer losses in interim results?

On February 9, the stock was trading at NZ$0.43 at the time of writing.

PaySauce limited (NZX: PYS)

A New Zealand-based fintech, PaySauce, reported strong growth in the first half of FY22 with a 43% year-over-year increase in revenue over the same period. He reinvested much of the revenue into other revenue-generating areas such as product improvement, support, and bringing in new customers.

Asantha Wijeyeratne, CEO of PaySauce, said careful decisions made about packages and pricing were paying off. The company recorded customer growth of 38% year-over-year and exceeded quarterly growth of 20% for two consecutive quarters.

Read: How are 5 NZX tech stocks doing after the NZ Tech Awards?

Customer metrics were also trending well after purchasing SmoothPay.

On February 9, the stock was down 1.72% in red to close at NZ$0.28, at the time of writing.

Wellington Drive Technologies Limited (NZX:WDT)

WDT is an Internet of Things (IoT) solutions provider. In December, WDT notified that its earnings would be in the same range as previously notified. It said it expects revenue and EBIDTA to be around US$47 million and EBITDA to be around NZ$3.9 million. PYS expects revenue growth of 25% in FY22 and $100 million in revenue by FY23.

On February 9, the stock was trading down 1.10% at NZ$0.184, at the time of writing.

Also Read: What Are The 4 Fastest Growing NZX Penny Stocks Under 50 Cents?

Conclusion: The tech sector is a buoyant sector and with the gradual opening of borders, the shortage of skilled labor will end and lead to new growth, particularly in fintech.