HeartCore Enterprises Inc (NASDAQ:HTCR) shares surged 150% to $3.20 in Tuesday’s trading session after the software development company saw its first-quarter 2023 revenue rise 284% year over year to $8.7 million, surpassing the consensus estimate of $2.1 million.
HeartCore recorded net income for the period of $1.8 million, or $0.10 per diluted share, also beating analyst expectations of a $0.03 per-share loss.
The company attributed its revenue for the quarter, which nearly exceeded its sales for all of 2022, primarily to the expansion of its Go IPO business, in addition to the acquisition of Sigmaways and its subsidiaries.
“Our core software division drove robust operating results stemming from newly adopted marketing techniques and customer acquisition methods that were implemented last year; these changes led to profitability within this sector of our company,” HeartCore Enterprises CEO Sumitaka Yamamoto said in a statement.
“We are seeing this encouraging trend continue to persist which is why we are confident our software division will have a strong 2023,” he added.
Yamamoto also noted that the company expects to benefit from the closing of another six deals for the remainder of this year, including SBC Medical Group, its biggest acquisition yet, which will add about $32.4 million to HeartCore’s top line.
The company ended 1Q with cash and cash equivalents of $5.2 million as of March 31, 2023.
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