Bigtincan Holdings Limited (ASX: BTH), a company from software and services industries which is into the business of providing enterprise mobility software has received $7.2 million contract expansion with T-Mobile which it announced on 8 January 2019 on ASX. Through its existing T-Mobile’s US customer base, the expansion of the contract will generate a recurring revenue of $7,221,389 for three years.
BTH has initially won the contract through competitive tender in August 2017. Through this contract, BTH was able to position the Bigtincan Hub application to 5,500 retails stores which reached 23,000 mobile. With the expansion of the agreement, BTH along with its initial deployment of Bigtincan application to 23,000 mobile devices will now be including the B2B sales and also extend the use of the Bigtincan Hub Platform where it will act as a core platform for business purpose using Bigtincan application programming interface (API) and software development kits (SDK).
The announcement also highlights the CY2018 growth and the contracts won during the period. There are around 12 customers who are now associated with BTH. These are American Express, CA Technologies (Broadcom), McKesson, Eaton, EMC Corporation, Prudential Insurance, Cushman Wakefield, Guardian Life, Acushnet (Titleist), Anheuser-Busch, Pacific Life, Microsoft. During the CY2018, the company was successful in releasing more than 100 Bigtincan Hub across five platforms and issued a public software development kit.
The company also acquired FatStax, who is the leader in the manufacturing vertical in sales content enablement. The second acquisition was of Zunos, which will be bringing Bigtincan deep new capabilities in learning. BTH also won multiple industry awards. It also expanded its horizon in Verizon (USA) and Cancom (Europe) through its global relationship. Its partnership deepened with Apple and Salesforce.com. It received grants on its patents in the USA. The company also integrated its application to Microsoft Outlook, Cornerstone, and more than 30 external repositories.
The official listing date of BTH on ASX is 24 March 2017, where its performance till date remains 10.42%. However, its one-year performance is -43.62%.
The FY2018 financial statements of BTH by the end of 30 June 2018, shows that there was a net loss of $6.641 million.
The balance sheet of the company shows a net asset of $16.713 million and a debt-equity ratio of 0.75 which indicates that the company seeks to support more from the external financial sources in case of any financial requirement within the company. The balance sheet also shows that BTH can efficiently manage its working capital requirements and short-term debt. There is also an increase in the accumulated losses which might influence create a negative influence on investors. The total shareholder’s equity is worth $16.713 million. The net cash available with the BTH by the end of FY2018 was $23.782 million.
Although the company made a loss in FY2018, still with the recent contract won and the CY2018 achievements of the company, there is hope amongst the investors regarding the company’s growth shortly. The extension of the earlier contract which includes additional responsibilities indicates the confidence of T-Mobile on Bigtincan Holdings Limited which is also a positive sign for the investors. It will also strengthen the balance sheet of the company.
At present, the share of BTH is trading at A$0.305 (AEST: 3:24 pm, 8 January 2019) with the stock holding a market capitalization of A$58.78 million.
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