Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
What: Shares in Blinkx (LSE: BLNX) jumped over 11% in early trade this morning, after reporting a 36% increase in year-on-year revenues in its half-yearly report.
So what: That 36% increase brought revenues up to $111.55m from $81.97m, but also contributed to a massive three-fold increase — 335% — in pretax profit, coming in at $10.78m from $2.48m in the comparative six-month period last year.
Management reported that its growth “comfortably exceeded that of the industry, even without the one-time benefits of the previous year”, helped by an expanding universe of organic and acquisition growth opportunities, particularly in mobile .
It also saw good results from its recently released proprietary video syndication platform, blinkx Video Advantage, which distributes video content across multiple websites.
Now what: Although Blinkx doesn’t currently pay a dividend, today’s news means that its shares are now up over 150% in the past year, a fantastic performance from a growth stock.
Management aren’t afraid to ‘speculate to invest’, having acquired a leading online video content syndication and advertising platform in the US named Grab Media. On the surface, it doesn’t look like the end of this growth stock’s story.
