The data scandal at Facebook Inc. rattled the company and has led to a public outcry from a number of sources. In truth, it is difficult to measure the response from users at large, but we may get a clearer picture with its next earnings report. The scandal has created debate over privacy and data collection — in particular, the ethics of such collection for political purposes.
The companies in this article are worth monitoring for the contribution to information accessibility, data gathering, and even security that may be implemented to safeguard the integrity of our political systems going forward.
Solium Capital Inc. (TSX:SUM)
Solium is a Calgary-based software-as-a-service company. It is best known for Shareworks, which is used by private and public companies to manage employee stock options and cap tables. Solium stock has increased 3.2% in 2018 as of close on March 23. Shares have surged 49.5% year over year. The company released its 2017 fourth-quarter and full-year results on March 21.
Total revenues rose 12% to $86.5 million in 2017, and adjusted EBITDA fell to $12.2 million compared to $15.6 million in the prior year. In the fall of 2017, Solium acquired Capshare, a cloud-based platform for capitalization table management and other modeling and analysis. Solium is still in an investment phase and should remain a target for investors looking for long-term growth.
Kinaxis Inc. (TSX:KXS)
Kinaxis is an Ottawa-based software and services company that specializes in supply chain solutions. Kinaxis stock fell 2.61% on March 23. Shares have climbed 7.4% in 2018 on the back of an announcement that Toyota Motor Corp. had selected the company to manage its automotive demand and supply chain processes. This was encouraging news after the loss of a significant Asia-based client in the middle of fiscal 2017.
Kinaxis has worked to establish a foothold in facilitating supply chain modernization for companies. As a part of this, Kinaxis is pursuing development of artificial intelligence and machine learning to improve supply chain processes. In 2017, Kinaxis reported revenue of $133.3 million, which represented a 15% increase from 2016 with subscription revenue rising 23% to $100.8 million. Gross profit jumped 17% to $93.5 million and 70% of total revenue.
BlackBerry stock fell 3.3% on March 23. Shares have climbed 14.1% in 2018 as the company has made significant strides in the development of its software and services offerings in recent years. The company has moved into the fast-growing autonomous vehicle industry and is a trusted global provider of mobile security technology.
The latter point is of interest in light of the Cambridge Analytica and Facebook scandal in the United States and even Britain, during the Brexit campaign. Public and private entities are investing more in cybersecurity in response to foreign and domestic threats. BlackBerry already provides cybersecurity to a number of governments, including the U.S. and Canada. Institutions will rely on the security provided by firms like BlackBerry to ensure integrity going forward.
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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Facebook. Tom Gardner owns shares of Facebook. The Motley Fool owns shares of BlackBerry and Facebook. BlackBerry, Kinaxis, and Solium are recommendations of Stock Advisor Canada.