The Spacetalk Ltd (ASX: SPA) share price is shooting higher today following the release of its quarterly business update.
At the time of writing, the technology company's shares are fetching 17 cents apiece, up 6.25%.
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How did Spacetalk perform in Q3?
Spacetalk shares are lifting off today after the company provided investors with a robust trading update.
For the quarter ending 31 March (Q3), Spacetalk delivered record revenue of $3.9 million, reflecting year-on-year (YoY) growth of 110%. The result was also underpinned by a particularly strong Christmas sales period as COVID-19 restrictions eased.
Spacetalk's channel partners placed a record number of orders to ensure enough stock was available for customers. Most notably, Spacetalk's Australian wearable devices segment saw a jump from $0.3 million in Q3 FY20 to $2.4 million in the recent March quarter. Furthermore, this represents an increase of 768% between the 12 months.
Across the Atlantic, the United Kingdom market suffered a setback in revenue. Attaining just $0.2 million, down 36%. The country's extreme lockdown measures heavily impacted consumer discretionary spend. However, Spacetalk revealed it is currently in discussions with a large mobile network operator and retailers to have a physical presence instore. The company also remains on track for its United States launch this year.
Furthermore, Spacetalk went on to mention about its recent updates such as its partnership with Telstra Corporation Ltd (ASX: TLS), and its LIFE B2B2C model launch.
Additionally, the company declared $4.9 million in cash, with $3 million in drawn debt at the end of the March quarter. This follows Spacetalks's recent $5 million loan facility to fund inventory purchases, expand geographically, and invest in its brand.
Management commentary
Spacetalk CEO Mark Fortunatow hailed the strong result, saying:
I could not be more excited about the tremendous progress and growth we are seeing in our business; with the Adventurer and original Kids devices benefiting from their strong leadership in a category now gaining mass market appeal, and the growing recognition by aged care, home care and disability industry participants, of the important contribution our LIFE device makes for enabling their residents and customers live life to the fullest.
About the Spacetalk share price
Spacetalk shares have accelerated to almost 90% in the past 12 months, and are up over 50% year-to-date. The company's share price reached a 52-week high of 22.5 cents in August last year, before moving in circles.
On valuation grounds, Spacetalk presides a market capitalisation of around $28.1 million.
