The BidEnergy share price is up 700% in 12 months

The BidEnergy Ltd (ASX:BID) share price has been on fire over the last 12 months, rising 700% over the period…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Wednesday the BidEnergy Ltd (ASX: BID) share price came under pressure and ended the day 7% lower at $1.05.

Despite this sizeable decline, the technology company's shares are still up an incredible 700% over the last 12 months.

This means that a $25,000 investment in its shares a year ago would now be worth a staggering $200,000 today.

What is BidEnergy?

BidEnergy is an Australian-based technology company which provides a cloud-based platform which simplifies the complex energy spend management process by using automation. This allows organisations to have complete control over their energy spend.

Unlike manual consulting and business services, the platform automates the management of every component of the process for multisite companies.

And by automatically capturing and validating invoices and meter data, BidEnergy's clients can streamline their accounting and payments processes, go to market at short notice to optimise their supply contracts, and reduce billing charges using sophisticated analytics and reporting.

In addition to this, the company's Robotic Process Automation (RPA) platform gives small to large enterprises greater control over the full energy spend lifecycle. This is particularly the case where there is a national multi-site configuration.

The RPA platform can be utilised to automatically capture and validate invoices, automating the payable function, discovering cost reduction opportunities, and providing real-time energy information and accurate financial capabilities at the touch of a button.

Why has its share price rocketed higher?

Investors appear to have been impressed at the progress the company has made and its sizeable market opportunity.

In the first half of FY 2019 BidEnergy posted a 24% increase in revenue to $2.8 million, which was driven largely by a 55% increase in platform subscription fees. The company finished the period with over 37,000 meters under management, some of which were in the UK and US.

What now?

Over the last couple of weeks there have been a few cases of insider buying. So clearly management is confident in the company's prospects and still sees value in its shares at this level.

But for now, I'll be keeping it on my watchlist and watching its progress with a keen interest.

Other small cap tech shares to watch this year include LiveTiles Ltd (ASX: LVT) and Megaport Ltd (ASX: MP1).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

Guess which 4 ASX 200 shares are rocking new 52-week highs today!

Investors just sent these four ASX 200 shares to one-year-plus highs.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX managed to bank a small rise this Tuesday.

Read more »

Sport trainer talking to little girl who is climbing wooden ladder in gym.
Share Gainers

Why Vault Minerals, Droneshield, Westgold Resources shares are climbing higher today

These shares are gaining on Tuesday, but why?

Read more »