Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

What to watch when Altium Limited (ASX:ALU) reports

Here are three things to look for when Altium Limited (ASX: ALU) reports next week:

1. Revenue per subscriber will be watched

Following the COVID-19 outbreak and updates from Altium’s management, the revenue result will likely be slightly higher in FY20 but below what many investors were expecting six months ago.

Based on recent commentary and forecasts, it’s likely revenue growth will be 10% above last year. Management seems to have achieved some strong operating growth, such as growth in the number of subscribers (now totalling 50,000+), but the revenue from the newer customers mightn’t be as strong as many expect.

What to look for: clarity around pricing and the efficacy of online sales — management promised more clarity on pricing and incentives during COVID.

2. Altium 365 uptake is key

Altium’s new cloud product should be an essential tool for engineers and designers working remotely.

Subscriber numbers are still small relative to Altium Designer, the flagship product. However, the workflow improvement for companies shifting to more remote workforces means the uptake of Altium 365 is key.

As investment analyst Owen Raszkiewicz explained in a Reporting Season video update this week, competitors like Cadence Systems (NASDAQ: CNDS) and Mentor Graphics, owned by Siemens, have recognised the importance of this shift as an opportunity to grab customers.

What to look for: Investors will be hoping for strong uptake and commentary around pricing for Altium 365.

3. A strong profit result is expected

Given the scalable and strong cash flow generation of Altium, analyst are expecting a net profit (NPAT) of $26 million, according to reporting by Bloomberg.

On Monday morning August 17th, tech investors will have their gaze fixed firmly on Altium’s commentary and financial statements.

Click here to read Jaz Harrison’s take on the Altium FY20 report

Use your web browser to bookmark our ASX growth shares or Reporting Season pages for daily analysis and updates.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article owns shares of Altium.
Skip to content