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This 1 TSX Tech Stock Is the Choice of Fortune 500 Companies

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Vancouver-based Absolute Software (TSX:ABT) deserves all the attention and interest it’s getting from customers as well as investors lately.

The fiscal 2020 second-quarter financial results presented by the company’s CEO Christy Wyatt showed double-digit enterprise growth and strong profitability.

This Canadian firm develops, markets, and provides cloud-based endpoint visibility and control platform for the management and security of computing devices, applications, and data for enterprise and public sector organizations.Absolute is slowly cementing its leadership position in endpoint resilience.

Financial & business highlights  

For Q2 fiscal 2020, Absolute’s total revenue was $25.8 million, or s 6% year-over-year increase. On a year-to-date basis that equates to $51.4 million, a 6% increase over the prior year. Notably, net income for Q2 fiscal 2020 and year-to-date fiscal 2020 rose by 54% and 104%, respectively.

But the most significant highlight was the 5% increase in Annual Contract Value (ACV) versus the previous year. As of December 31, 2019, the ACV Base is $100.3 million.

Of the total ACV Base, 69% comes from the Enterprise & Government sector portions while the Education sector portion makes up the 31%.

The Enterprise & Government sector saw an annual increase of 12%, although the Education sector had an 8% dip. There was a 30% incremental ACV from new customers in Q2 fiscal 2020 ($1 million to $1.3 million) compared with the Q2 fiscal 2019.

Meanwhile, net ACV retention from existing customers was a remarkable 100% during the quarter. Trust is building as more Fortune 500 companies are partnering with Absolute.

Renowned device manufacturers such as Microsoft and Dell embed their devices with Absolute’s unique firmware before leaving the assembly lines.

The latest additions to the expanding list of partners are Mercy Health, State of Louisiana, and Hamilton Health Sciences Centres. Currently, more than 12,000 customers worldwide are using Absolute’s tamper-proof endpoint visibility and control solution.

Absolute is the only company with a solution that can protect devices, data, applications, and users against theft or attack, whether on and off the corporate network.

Leadership changes

Beginning in the last quarter of 2019, Absolute made some changes at key senior executive level positions. Will Morris took over as Executive Vice President of Engineering, while Ameer Karim was appointed Executive Vice President of Product Management.

Early this year, Absolute hired Dianne LaPierre as chief information officer. LaPierre brings 20 years of experience and leadership within the information technology and security sectors. Her solid credentials will help drive Absolute’s IT solutions and services in support of the overall business strategy.

Expanding the ecosystem

Absolute is expanding the ecosystem of security controls and applications with about 40 applications on record. All of them are vital in today’s remote digital work forces because it allows IT organizations to enforce asset management, security hygiene, and data compliance.

You might consider taking a position in one of 2020’s top growth stocks while it’s still trading below $10 at writing. Notably, the company is also paying a 3.41% dividend.

The stock is up 12.74% year to date, and your gains could be so much more in the near future. This cutting-edge tech company is about to rule the cybersecurity industry.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft.

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