Why is this ASX All Ords tech share crashing 15%?

This tech share is having a day to forget…

| More on:
a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the Pilbara Minerals share price continue to fall

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

The Objective Corporation Limited (ASX: OCL) share price is ending the week in a disappointing fashion.

At the time of writing, the technology solutions company's shares are down 15% to $12.74.

This means the Objective Corp share price is trading within sight of its 52-week low of $12.50.

Why is the Objective Corp share price being sold off?

Investors have been selling down the Objective Corp share price today in response to the release of a disappointing trading update after the market close on Thursday.

As management previously advised, Objective Corp has followed the lead of TechnologyOne Ltd (ASX: TNE) and switched its focus to a software-as-a-service (SaaS) model. This has seen the company stop offering purchase perpetual right to use (PRTU) licensing options to new customers.

Management expects this to boost its annual recurring revenue (ARR) in the coming years. However, this has had a negative impact on its sales revenue in FY 2023 and management is now guiding to softer than normal revenue growth.

In addition, the company notes that salary growth in the technology industry has been "very robust" over the past 18 months and it has spent heavily on travel costs to re-engage with customers.

In light of the above, FY 2023 revenue growth is going to be "single-digit rather than the double-digit figures that shareholders have come to expect" and its operating margin will decrease.

While this is disappointing, management remains very positive and highlights its very strong balance sheet (cash of $60 million and no debt), its highly cash generative business, and positive long term outlook. In respect to the latter, the company concluded:

The customer demand and fundamentals of our business remain strong. This will put us in a strong position to deliver outstanding headline numbers again from FY 2024.

Should you invest $1,000 in Critica Ltd right now?

Before you buy Critica Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Critica Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Objective Corporation Limited. The Motley Fool Australia has recommended TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

3 reasons to buy this $25 billion ASX 200 tech stock today

A top expert forecasts more outperformance from this fast-growing ASX 200 tech stock.

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Technology Shares

Why is the Brainchip share price crashing 9% today?

The semiconductor company is being sold off on Tuesday. But why?

Read more »

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

3 reasons this sold-off ASX 200 share is primed for a big rebound

A leading expert believes this ASX 200 share is well placed to outperform.

Read more »

a man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Technology Shares

I did some research on Siteminder — Here's what you should know

The big questions I'm monitoring for answers.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Technology Shares

Up 98% in a year, how this ASX All Ords stock is tapping into a $16 billion market

A leading expert forecasts more outsized returns for this surging ASX All Ords stock.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Guess which ASX All Ords stock is rocketing 34% on takeover deal

This stock looks set to leave the ASX boards in the near future after accepting a takeover deal.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Technology Shares

Are DroneShield shares going to $1.50?

Where next for this high-flying stock? Let's see what Bell Potter is saying.

Read more »