LiveTiles Limited (ASX: LVT), an Information technology company engaged in the development and sale of business software in Australia and overseas, released its investor presentation on 10 May 2019, wherein the company highlighted its growth highlights and growth outlook.
The company reported an annualized recurring revenue of more than 208% year-on-year, as on 31 March 2019. In just over a period of 4 years, the company has 879 paying customers. In the last 12 months, $23 million ARR was added. ARR has more than tripled in the last one-year period. LiveTiles is one of the fastest-growing SaaS companies in the world. In February 2019, the company concluded the acquisition of the leading ‘plug and play’ of Europe. The Microsoft aligned digital workplace software business also completed in February 2019. As compared to the previous corresponding March 2018 quarter, there was an increase in the customer cash receipts by 256%. A significant improvement is seen in the operating cash flow since the first quarter of FY2019.
The company had also launched alliances with complementary SaaS companies in order to expand customer opportunities as well as accelerate growth. These companies include Nucleus Cyber, Starmind, Hendrix, Zegami and Search365.
Along with Search365, the LVT had last month struck a strategic partnership to create the most sophisticated information discovery tool with capabilities of real-time file search and response work.
On 17 April this year, the company notified the market that it had entered into a strategic partnership with Zegami, which is backed by the University of Oxford. Under the strategic partnership, the world’s first enterprise-grade visual search and analytics solution will be launched. The company expects the solution to be met with strong interest, as well as drive strong revenue growth.
As announced on 5 April 2019, LiveTiles was selected by the Australian Federal Government of DTA Panel as the first Intelligent Workspace provider. Thus, it also validates the value of offerings made by the company.
By 30 June 2021, LVT has a chief goal to grow ARR to a minimum of $100 mn. Its organic growth drivers include:
- Very large and growing addressable market.
- Focused direct sales & marketing strategy targeting larger enterprises.
- Conversion of large pipeline generated by N3 team in the United States.
- High-impact co-marketing initiatives with Microsoft.
- Continued growth in partner/reseller distribution channel.
- Increasing demand for AI products.
- Substantial ‘expand’ and cross-sell opportunity with existing customers.
- Technology Alliances.
In the 1H FY2019, the revenue from the ordinary activities increased from $1,903,249 in 1H FY2018 to $5,677,075. The company incurred a loss of $22,769,721. The balance sheet of the company reported a growth in the net asset base, as a result of an increase in the total asset of the company. The total equity by the end of 1H FY2019 was $21,937,951. By the end of the 1H FY2019, the net cash and cash equivalent were $22,412,522.
The stock has generated a decent YTD return of 36.76%. By the closure of the trading session, on 10 May 2019, the shares of LVT closed at A$0.440, down by 5.376%as compared to its previous closing price. LVT holds a Market cap of A$304.04 million and approximately 653.86 million outstanding shares.
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