Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of British multinational information technology company AVEVA Group (LON: AVV) are on the rise on Friday after it said that contract renewals in the three months to December 2020, helped to improve revenue growth by approximately 1.5% in the nine months to December 31st 2020, with recurring revenue growing by 10%, taking it to 68% of overall group revenue.
AVEVA's stock price is trading 6.5% higher, priced at 3,788p following the news.
The company said they had a strong quarter of contract renewals and were “excited about the significant growth opportunities ahead.”
Organic constant currency revenue growth in the three months ending December 31st 2020 was over 26%, driven by a significant number of scheduled subscription renewals, including a sizeable three-year contract renewal in the Food sector.
The group also benefited from the early renewal of a significant three-year EPC contract scheduled for AVEVA's Q4 and converting two large deals in the Marine sector from annual fees to multi-year subscription.
“The Board remains confident in the full year outlook for AVEVA. Notwithstanding the disruption seen to the trading environment in 2020, the trend towards the digitalisation of the industrial world is strong and the Board remains excited about the significant growth opportunities ahead,” the company said in its statement.
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