Mopoke Cloud Index for 2024

Technology companies on the ASX that meet the performance criteria

To kick off the year I’m updating the Mopoke Cloud Index, a list of technology companies on the ASX that meet the performance criteria.

Updating the list lets us see who we should dive into and what trends might be at play. 

I do these deep dives because (a) it gives me insight into how to better manage technology companies, (b) it gives insight into investing better in tech companies and (c) I might find interesting spinout or acquisition opportunities for Terem.

Let’s revisit the criteria we use to identify companies for the index then we will see who’s in the list and some initial insights.

Performance Criteria

These technology companies have:

1. ☁️ Software or cloud-based products: we want to products with high gross margins and scalability.

2. 🖥 Clear Product Market Fit (PMF): the company has built a software product or service that sells. This can be difficult to assess so, to keep things simple, we define PMF as having greater than $10m of expected revenue in the next-twelve months (NTM).

3. 💵 <$10bn market cap: we’re interested in companies that we can learn from, represent interesting investment opportunities or provide spinout/acquisition targets.

4. 📈 Revenues growing >20% annually: this helps us focus on companies that are performing. 

5. 🌎 Global market opportunities: We want companies that are not limited by local borders that can grow globally either now or in future. Alternatively, if they’re very focused on a single region then there is high defensibility within the region (e.g. due to regulation).

Mopoke Cloud Index 2024

The list has substantially reduced from 95 (2022) down to, now, 46 at the beginning of 2024. 

Initial Insights

In putting together the new list there were a few points of interest:

1. Buy Now Pay Later and Human Capital/Payroll companies, hot categories from a few years back have disappeared entirely.

2. Companies in Healthcare that meet the criteria dropped substantially (from 8 in 2022 down to 2 now)

3. Gaming (video games, game development) emerged as a category.

4. Some new categories are worth carving out: Payments, Energy & Utilities and Telco. 

What next

Next I will look into the high performers in this group.

But I’m also keen to hear from you - what analysis would you like me to do? Hit reply or add a comment.