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On 27th February 2019, LiveTiles Limited (ASX:LVT) which is an information technology company and works in the development and sale of business development software in Australia and abroad announced its 1HFY19 results. The revenue (excluding other income) for 1HFY19 stood at $5.67 million which is an impressive increase by 198% from the previously reported number of $1.90 million in 1HFY18. The main highlight in the revenue was the Annualised Recurring Revenue (ARR) which grew to $22.9 million at 31st December 2018, representing annual growth of 232%, with ARR growing by $16.0 million in CY18.
The company has also seen the customer growth by 153 new customers, (from which 39 customers were generating ARR of $100,000) taking total paying customers count to 598. [optin-monster-shortcode id="swikrbu1d9j9aq0o4cko"]
On the balance sheet front, the improvement is visible. The net cash with the company increased from $17.84 million in 2HFY18 to $22.41 million in 1HFY18, taking current assets from $22.38 million to $28.52 million in the same period. Noteworthy investments in long term assets like equipment, property etc., increase in rental deposits from $233,475 in 1HFY18 to $278,905 in 2HFY19 increased the total assets of the company from $27.46 million in 2HFY18 to $33.71 million in 1HFY19 which is a healthy increase of more than 22%. Liabilities, on the other hand, have also gone up to some extent. Income tax payable has gone up from $257,999 in 2HFY18 to $335,490 in 1HFY19. However, the deferred tax liability remained intact at $448,500. Liabilities (excluding equity) have gone up to $11.77 million in 1HFY19 from the previously reported number of $10.46 million in 2HFY18, which is a marginal increase of around 12.5% compared to the increase in the assets.
The net cash outflow has increased compared to the previous numbers. Cash outflow from operating activities has more than doubled in a year from $7.73 million in 1HFY18 to $19.82 million in 1HFY19. The company has significantly received the receipts from customers (Attributable to increase in number of customers and ARR per customer) from $1.93 million in 1HFY18 to impressive $6.4 million in 1HFY19 but on the other hand the payments to suppliers and employees also increased significantly from $9.63 million in 1HFY18 to $26.35 million in 1HFY19 which in significantly more than the cash inflow from receipts. It led to the net cash outflow from operating activities increased from $7.73 million in 1HFY18 to $19.82 million in 1HFY19. The similar pattern of cash flow was seen in other activities (investing and financing) where the companyâs cash outflows were higher than the inflows.
The company was also positive on the future trajectory of the business going forward. It expects to deliver another of strong revenue growth in FY19 which will be attributable to the recent launch of the Companyâs AI products, Companyâs investment in sales and marketing co-marketing initiatives with Microsoft etc. The companyâs target is to increase ARR from $30.9 million as at 31 December 20186 to at least $100 million by 30 June 2021.
The Strong growth and outlook got investorsâ attention as well. On 27th February 2019, the stock price surged more than 11.9% on ASX and closed at A$0.375 compared to the previous closing of A$0.335. This rise will take the YTD return of negative 1.47% to the positive side.
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