On 15 January 2019, LiveTiles Limited (ASX: LVT), a company from the software and services sector which is into the business of developing and selling its business software in Australia and abroad announced its annualized recurring revenue (ARR) increase by 232% on a year-on-year basis. By the end of 31 December 2018, LVT reports its ARR to be $22.9 million which was $6.9 million as at 31 December 2017.
LVT’s N3 sales and marketing team in the United States is continuously putting their efforts to generate sales pipeline growth. Through this, the company was able to increase its customer base and also its annual recurring revenue during the period.
Its recently acquired company Hyperfish was also brought into the limelight as the business after the acquisition was successful in delivering more than three times growth in the past six months.
LVT also has an ongoing campaign with Microsoft, where the primary focus of the company is to create a strong demand for the LiveTiles’ intelligent workplace offering.
With the growing brand value, product awareness and its increasing sales pipeline, the company expects that by the end of FY2019, it will be successful in increasing its revenue as well as gross margin.
By the end of the financial year 2018 on 30 June 2018, LiveTiles Limited made a net loss of $22,058,984. The balance sheet of LiveTiles Limited appears quite healthy with a net asset base of $17,001,097 and a debt-equity ratio of 0.615. It indicates the company is financially sound to meet its long-term obligations. Debt-equity ratio being 0.615 suggests that the company during the period tried to use its resources initially instead of approaching any external sources in case of any financial requirement. LVT has a total current asset of $22,388,537 and a total current liabilities of $9,424,126 which shows that the company can easily handle its working capital requirements and its short-term debt. As compared to the previous financial year, FY2018 reports an increase in the accumulated losses by 1.9 times which is an indication of a weak operating performance. The total shareholder’s equity is worth $17,001,097.
By the end of the FY2018 on 30 June 2018, the net cash and cash equivalent with LiveTiles Limited was $17,848,223.
Although the performance of LVT in FY2018 was not good, however, its performance till the last ten years was positive. In the previous five years, the performance of LVT was 72.50 %. With a year on year increase in the annual recurring revenue and its recently acquired business getting flourished might have created a positive influence amongst the shareholders and the investors.
Post the announcement, with the market open on 15 January 2019, the opening price of the share was A$0.390 which is also the highest price of the day. The lowest price for the day was A$ 0.365. The closing price of the share was A$0.370 which is 0.025 points above its previous trading day’s closing price with the stock holding a market capitalization of A$190.29 million.
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