Investors looking for the best technology stocks should consult the TSX Venture 50 list. Here’s an overview of the latest list.
To showcase its best-performing stocks, the TSX Venture Exchange (TSXV) issues a yearly list, dubbed the TSX Venture 50. The latest version was released last week.
In order to earn a spot on the list, companies must have had a market capitalization greater than C$5 million and a closing share price of over C$0.25 as of the end of 2019, as well as a minimum closing share price of C$0.10 as of the last day of 2018. On top of these criteria, they must have held a TSXV listing for over a year as of the end of 2019.
Companies that meet those criteria are then ranked using an equally weighted formula taking into account share price change, trading volume and market capitalization.
“We are especially proud to recognize this year’s Venture 50 winners, a diverse cross-section of visionary, early-stage companies who have performed well during challenging market conditions,” said Brady Fletcher, managing director and head of the TSXV, upon the release of the most recent list.
Here’s a look at the top five technology companies on the TSX Venture 50.
1. Score Media and Gaming (TSXV:SCR)
This company oversees the operations of theScore, a popular multi-sports website offering content attached to the latest developments in the sports world.
Based in Toronto, Ontario, the firm reported revenues of C$9.2 million for its most recent fiscal quarter, in addition to healthy increases in its audience metrics.
The company has emphasized the development of gambling opportunities across league partnerships and even its own content. Thanks to the launch of its theScore Bet program, the firm has found an additional avenue for potential revenues.
2. MediaValet (TSXV:MVP)
MediaValet offers a cloud-based digital asset management program built using Microsoft Azure. This program is adaptable to leading third party applications such as Slack and WordPress.
“We achieved record level performances in every quarter this past year, including nearly doubling our customer base, attaining net customer retention rates above 100 percent, and high-margin recurring revenue growth in excess of 70 percent,” David MacLaren, founder and CEO of MediaValet, said in a statement celebrating the inclusion of the company on the TSX Venture 50.
3. mCloud Technologies (TSXV:MCLD)
This company offers consumers its services by way of the artificial intelligence-driven mCloud ecosystem of programs, primarily its AssetCare platform, which provides asset management solutions specifically designed for smart buildings, wind energy and oil and gas.
This year is the second in a row that the company has cracked the TSX Venture 50. “It’s an honor to again be named to the TSX Venture 50 and being a part of this exclusive group of industry leaders,” said Russ McMeekin, mCloud’s president and CEO. “mCloud has consistently created value for our shareholders through execution on our strategy and international expansion.”
Most recently, the firm confirmed plans to acquire Australia-based BuildingIQ (ASX:BIQ). This potential purchase is driven by the desire to combine the energy savings technologies from both companies.
4. Sangoma Technologies (TSXV:STC)
Sangoma Technologies is a business communication solution provider that offers a variety of options for enterprise applications. The firm touts clients such as Domino’s Pizza (NYSE:DPZ) and a subsidiary of Caterpillar (NYSE:CAT).
As part of its latest quarterly results, the firm told investors sales saw a boost of 31 percent compared to the same period the previous year.
Aside from its TSX Venture 50 appearance, Sangoma recently obtained a flashy ranking on the Enterprise Fast 15 list from business research firm Deloitte. Bill Wignall, president and CEO of Sangoma, praised the addition as a “gratifying” event for the company.
5. VersaPay (TSXV:VPY)
VersaPay was recently acquired by private equity firm Great Hill Partners in a deal estimated to be worth C$126 million. The former public firm was a fintech operator with cloud-based invoice-to-cash solutions available to businesses.
“As a privately owned company backed by a strong partner like Great Hill, VersaPay will be positioned to invest strategically and focus on long-term growth,” Craig O’Neill, CEO of the firm, said in a statement. The deal was closed in late February thanks to large support from shareholders.
Other top TSX Venture 50 tech stocks
The other tech stocks that made it onto the TSX Venture 50 are Converge Technology Solutions (TSXV:CTS), Kraken Robotics (TSXV:PNG), AnalytixInsight (TSXV:ALY), kneat.com (TSXV:KSI) and Reliq Health Technologies (TSXV:RHT).
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.