Anyone with even a passing interest in the stock market has heard of HotCopper.
Australia’s number one stock market discussion forum, HotCopper has over 250,000 registered members and attracts more than 700,000 unique users every month, who use the site to research and discuss ASX-listed stocks.
HotCopper’s success since its inception in 2004 has been underpinned by the rise of the DIY investor – investors who research and execute their own investment strategies via popular online trading platforms. In recent years, HotCopper has proven itself to be a vital source of information and engagement for this affluent group.
However – what many people don’t know is that HotCopper doesn’t just provide the forum. The company itself is publicly traded, listing on the ASX in 2016 on the back of its successful growth and trading under the stock code “HOT”.
The company has been busy since joining the Exchange, launching a number of new initiatives including Corporate Spotlight, a new investor relations platform which offers listed companies the opportunity to communicate directly to the site’s audience of retail, high-net-worth and institutional investors.
Under a subscription model, Corporate Spotlight has quickly found favour with companies seeking to improve engagement with retail and sophisticated investors, brokers, and institutions. For most, the real estate provided by Corporate Spotlight is visited by several thousand investors every year, making the argument to target this audience compelling. For HotCopper members, Corporate Spotlight provides a new source of information to help inform their investment decisions.
“Corporate Spotlight is our first major product initiative since listing, designed to enhance HotCopper as an investor relations tool for listed companies while also providing more content for our members,” said Non-Executive Director, Alec Pismiris.
“It provides companies the opportunity to put their investment case to investors seeking out information on their stock, most likely existing shareholders or those interested in buying shares.
Need to know:
- HotCopper is Australia’s largest stock market forum.
- The site has over 250,000 members and 700,000+ visitors to the site each month.
- The company recently reported YTD sales receipts of $3.2 million (as at 31 March 2017) and positive operating cash flow.
- Users include retail, sophisticated and self-managed superannuation fund investors, plus fund managers, brokers and institutional investors.
- HotCopper has 18x the traffic of its nearest competitor and comparable site traffic to some of Australia’s leading financial websites, including asx.com.au, etrade.com.au and commsec.com.au.
“With over 2,200 companies listed on the ASX, the opportunity for Corporate Spotlight to grow our business is massive.”
As one of many “fintech” companies that have joined the local bourse in recent years, HotCopper differentiates itself by generating positive cash flow as well as growing its user base. Providing the forum at no cost to members, the company has historically derived its revenue from commercial and corporate advertising.
Announcing its results for the March quarter, HotCopper reported $465,000 in positive cash flow. Year-to-date receipts from customers were well ahead of forecast at $3.2 million and the company’s cash balance increased by 15% to $2.42 million.
The company also announced the appointment of Ben Newport as Chief Executive Officer. Mr Newport has been with HotCopper since 2014, most recently as its Sales Director, and holds a degree in Information Systems from Murdoch University. Having been an instrumental part of the company’s revenue growth, the board considered Newport well placed to drive value for shareholders.
Commenting on his appointment, Mr Newport said: “HotCopper is a fantastic company with so much potential. I very much look forward to leading the team in developing innovative digital solutions for Australian investors.”
The company is currently developing a range of new website upgrades and investor services to enhance the HotCopper user experience. HotCopper’s iPhone app, for which sponsorship was secured late last year, will be released over the coming months. An Android app is scheduled to follow soon after.
Though there has been a big push for new revenue streams, the company’s core business continues to thrive and membership levels are at an all-time high.
“The majority of our members are enthusiastic Australian investors and share market traders. They rely on HotCopper for the latest in Australian finance news, market caps, ASX listed company announcements and prices,” Mr Newport said.
“We are pleased to say that our member numbers continue to grow, with our latest figures showing that the site attracts around 150 new members every day.”