Friday’s Top Gainers; Hollysys Automation Technologies, Smartsheet, & nCino
Hollysys to go private in partnership with Beijing local government
Hollysys Automation Technologies Ltd (NASDAQ: HOLI) jumped 16.51% following an announcement that a consortium led by the company’s management is planning to take the automation and control system manufacturers’ privates in a deal estimated to be around $1.8 billion. According to people familiar with the matter, the executive team, led by firm founder and CEO Wang Changli, received approval for such a deal from the Beijing local administration.
The leadership team acting under Beijing’s guidance is joining hands with a Chinese-based state corporation in the deal. Interestingly, the consortium believes that the New York stock exchange listed firm is undervalued in the US market. If the take-private deal materializes, it will add to the expanding list of US-listed Chinese firms that are moving the primary listing to Mainland China or Hong Kong as tension mounts between the US and China over auditing inspection.
Smartsheet reports 42% YoY revenue growth on Q2 2023
Smartsheet Inc (NYSE: SMAR) gained 10.84% after announcing its Q2 2023 financial results, in which total revenue was up 42% YoY to $186.7 million. The enterprise platform for dynamic work reported subscription revenue of $173.5 million, representing a YoY increase of 43%, while professional services revenue grew 24% YoY to $13.2 million. GAAP net loss during the quarter was $62.3 million or $0.48 per share compared to $44.2 million or $0.35 per share in Q2 2022. Smartsheet reported a non-GAAP net loss o $13.5 million or $0.1 per share compared to $5.8 million or $0.05 per share a year ago.
CEO and President Mark Mader said that the strong Q2 2023 results reflect the value customers are experiencing from the company’s premium capabilities and core platform. Mader added that they offer clients the tools they can use to unlock their team’s potential and attain better business outcomes that give them an edge in the current macro environment.
nCino signs deal with Rabobank
nCino Inc (NASDAQ: NCNO) was up 9.54% after the digital transformation, and cloud banking solutions provider revealed that Rabobank Australia and New Zealand (RANZ) had chosen nCino Bank Operating System employing the Automated Spreading software run by nCino IQ. The deal will benefit RANZ’s customers and employees, representing a cross-country and multi-currency commitment to offering an enhanced banking experience. RANZ COO Alexa Glynn said the partnership would help RANZ optimize its spreading financial analysis. Glyn added that the collaboration is an opportunity for the company to support its expanding customer base. In addition, the nCino tech will allow RANZ to offer an enhanced banking experience to clients and employees.
Through the adoption of nCino’s Bank Operating System, the food and agribusiness specialist bank will access a digital solution that will transform spreading finances through the use of machine learning and OCR (optical character recognition).