The Objective Corp (ASX:OCL) share price is up ahead of AGM

The Objective share price is up slightly in early morning trade after the company released it FY21 outlook ahead of the AGM today.

| More on:
man looking up as if watching asx 200 shares index such as VIX

Image source: Getty Images

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

Objective Corporation Limited (ASX: OCL) has released its FY21 outlook prior to its AGM today. In it, the company committed to a growth strategy based on digital engagement, research and development, and building recurring revenue streams. In year to date trading, the Objective share price has more than doubled, growing by 109% at the time of writing.  

FY20 was a benchmark year for the IT services and products company. It achieved a 22% increase in annual recurring revenue, cresting at $56.6 million. Simultaneously, it has grown net profit after tax (NPAT) by 22%. let's take a closer look.

What's driving the Objective share price?

Objective builds products largely for government and regulated industries. During FY20, the company saw fast growth for the Objective GOV365 product. This is a governance product for Microsoft teams. During FY20, Microsoft teams went from 20 million to 75 million daily users. Thus helping to protect commercially sensitive data.

The Objective share price benefited from positive trading updates during the COVID-19 pandemic. In fact, it reached new highs after the release of the FY20 annual report showing record growth. During FY21, the company has already acquired regulation technology specialist Itree. This is a cloud-based product company active in Australia and New Zealand. It was profitable on acquisition.

FY21 outlook

Objective continues to spend 20% of revenues on research and development, and is accelerating its integration of the Itree product.

It has also accelerated its growth through acquisitions. The company has honed its skillset in re-branding, integrating and delivery of products to market as a result, and gained praise for its customer service. 

In the Gartner Magic Quadrant for content services platforms, analyst company Gartner Group recently stated:

Objective had the highest Gartner Peer Insights scores for product capabilities and the ability to meet organisational needs.

It was also in the top five for ease of experience and overall experience, indicating that users of the solution are generally happy with both the service and product.

Objective plans to fully integrate two additional products, RegWorks and Reach into its platform, as well as leveraging artificial intelligence and machine learning. Its digital engagement strategy aims to leverage its Objective Redact product, currently 50% of US revenues.

On the financial front, Objective follows conservative accounting practices, and has reiterated its intention to be disciplined with all acquisition opportunities. It also underlined its expectation for material growth in revenue and profitability through the year, focussing on conversion to subscription based contracts.

The Objective share price opened at $13.11 today, and is currently trading up 0.61% at $3.18.

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Objective Limited. 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 Market News

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices.
Broker Notes

Macquarie tips 20% upside for this ASX 200 industrials stock

Let's see what the broker is saying about this stock following an update.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

CBA shares hit a new $176 record high. Too late to buy?

What can stop this bank now?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Adriatic Metals, Catapult, Seek, and TechnologyOne shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.
Mergers & Acquisitions

This ASX 300 share is sinking 33% on takeover collapse fears

Is this takeover dead? Let's find out what is happening.

Read more »

Mum playing with her baby boy holding him on her tummy as she lays down while smiling about the Bubs share price going up today
Broker Notes

Macquarie tips 80% upside for this ASX All Ords healthcare stock

This out of favour stock could be primed for a rebound.

Read more »