TOI:CC - Tech Stocks Came Roaring Back in the First Half of 2023: See the Top Gainers
2023-07-29 09:00:00 ET
Due to the ongoing trend of digitization across every industrial sector, companies are becoming increasingly dependent on tech-based applications, machine learning, and other solutions. They help increase efficiency in all aspects of an organization’s supply chain and operations, thus lowering costs and increasing profits.
As a result, in the first half of 2023, tech stocks are back again with a roar, creating ample opportunities for investors to profit from this sector. Check out the top gainers in this regard and the reasons why investors should consider buying them.
Topicus.com
Topicus.com ( TSXV:TOI ) is a Canadian vertical software provider primarily operating in 20 diverse markets across Europe. This company reported superb financial performance in this year’s first quarter in early May.
Tropicus posted revenue growth of 30% in comparison to the first quarter (Q1) of 2022, with figures reaching €264.4 million. The organization’s net income also appreciated to €21.1 million, amounting to €0.17 on a diluted per share basis. Furthermore, Topicus’s free cash flow available to investors reached €101.1 million. This is a significant jump from last year’s same-quarter €61.4 million, which proves the organization’s strengthening financial position.
Apart from this, the company also announced it completed the purchase of Five Degrees Holding B.V. The latter is a core cloud banking service provider with markets in Canada, the U.S., and Western Europe. Thus, its acquisition effectively increases Topicus’s stronghold in the FinTech sector, enabling it to provide improved financial services to its customers.
Tecsys
Tecsys ( TSX:TCS ) is a Montreal-based software company that deals in the development and marketing of enterprise-wide supply chain software solutions. Apart from Canada, this organization runs operations in the United States, Europe, and other parts of the world.
Tecsys’s strong performance was on full display in the company’s Q4 2023 report. Tecsys reported SaaS revenue growth of 44% in comparison to last year, reaching $11.1 million. The company’s annual recurring revenue also increased to $78.3 million, surging 25% over the same quarter the year prior. Additionally, the software provider’s professional services revenue reached $14.6 million, showing a 13% rise from last year.
Tecsys, along with SVT Robotics, reported it officially developed a state-of-the-art SOFTBOT® Platform Connector in April of this year. This product will enable the company’s elite clients to easily deploy robotics as well as multi-system automation solutions without any custom code development. In a market that is increasingly adopting automation, this connector will act as a game changer for Tecsys and its investors.
Bottom line
Both tech-based companies have significantly improved their financial performance over the past year, along with implementing plans to help scale their operations in the long run. Thus, given their growth potential, investors can consider adding them to their portfolios.
The post Tech Stocks Came Roaring Back in the First Half of 2023: See the Top Gainers appeared first on The Motley Fool Canada .
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tecsys and Topicus.com. The Motley Fool has a disclosure policy .
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