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Aconex says growth to ‘step back up’ after first half growth disappointed


Aconex co-founder and chief executive Leigh Jasper.

• The Australian
• 10:07AM February 21, 2017
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• SUPRATIM ADHIKARI
  
  Technology Editor
  Melbourne
  @SupratimA
  

Construction management software maker Aconex is sticking with its recently-revised full year outlook after posting a healthy uplift in revenue and earnings for the first half of fiscal 2017.
The technology company (ACX) has recorded revenue of $77 million for the six months ended December 31, 2016, a 38 per cent jump on the $55.7m posted in the same period last year. The overall number was impacted $4m by negative currency movement.
Meanwhile, earnings from core operations for the half year edged up 9 per cent to $7.4m, compared to the $6.8m posted the prior year.
Aconex has also reaffirmed its full year revenue and earnings outlook, which it revised downwards in January from a range of $172m-$180m to $160m-$165m. The full-year earnings forecast was also slashed at the time from $22m-$25m to a range of $15m-$18m.
Company co-founder and chief executive Leigh Jasper said he expected business to pick up in the next six months.
“While growth this half was lower than our expectations, we expect it to step back up,” he said.
“We will continue to invest in product, sales, marketing and customer service to capture the large global market opportunity.”
Increasing its global footprint has been the major factor affecting Aconex’s overall numbers, with the revenue increase in the half largely buoyed by the acquisition of German rival Conject Holding and strong international growth.
However, Aconex admitted in January that there had been some teething issues with its $96m acquisition of Conject, with one-off impacts of integrating the business hurting its bottom line.
Aconex, which provides process and project management solutions to the construction industry, saw its shares slide 45 per cent in January after the company cited the US presidential election and Brexit as key factors hurting sales in the British and US markets for the half.
It has recovered slightly since then and Mr Jasper said the current volatility hasn’t dampened Aconex’s plan to keep investing in the business.
“We will continue to invest in product, sales, marketing and customer service to capture the large global market opportunity,” he said.
“This investment will further consolidate our market leading position, underpinning our growth for years to come and enabling Aconex to deliver on its mission of connecting teams to build the world.”