LiveTiles has reported another quarter of strong growth.
ARR has hit $52.7m, up 22% from the preceeding quarter and 130% over the past year.
Worth noting that close to half of this was acquired growth from the CYCL purchase.
Average copntract value also increased, but so did churn amongst smaller customers.
There was no detail on cash burn, though that will be released prior to the end of January when it posts its next 4C.
In terms of outlook, LiveTiles said only that it "expects to deliver another year of strong customer and revenue growth"
More detail here
3 February 2020
LiveTiles approved for Microsoft co-sell into US Government
If this company specialises in software to allow companies to work from home, you would think a company like this should thrive in this environment, why have we not seen the growth? This should be their sweet spot with everyone working from home, yet it seems like they have not capitalised on it. Would this suggest clients don’t rate them as highly as other platforms?
I like this business and agree with the bull cases already posted, and we may not see the growth until the next quarterly update, either way I think it's worthwhile to keep this in mind.
Livetiles has significant tailwinds.
1. Covid, WFH, Digital transformation:
In US, there has been a huge increase in the number of companies that have allowed their employees to work from home permanently. Optus has also recently announced that its customer service department has been allowed to work from home permanently. I think this trend will continue. Hence, there is a strong need for intelligent intranet software that allows employees working remotely to collaborate and access information easily especially for departments such as customer service.
2. Shorter sales cycles:
With covid, companies are rushing towards digital transformation and making investments in intranets, collaboration/communication softwares like MS teams, slack etc. The managment also mentioned that it is seeing a drastic reduction in sales cycles.
3. MS Teams, sharepoint, office 365: The microsoft partnership is a huge one. I think live tiles can ride on the Microsoft assets like MS Teams, office 365 etc. The word "teams" was mentioned a number of times in the quarterly call and in the Q&A session.
4. Recognition from Gartner and Forrester: There is increasing recognition of Live tiles products and capabilities by the industry. 9 out of the 14 new customers that were mentioned were global players. This is a really good sign. I think livetiles is getting bigger clients.
I think the next quarter will be a surprise for the market.
16 January 2020
Q2 ARR grows to $52.7 million
10 February 2020
LiveTiles partners with Canva to accelerate global growth
LiveTiles continues to show promising ARR growth which does not seem to be represented in its current price. COVID's affect on large companies looking to facilitate better remote working should lend opportunity to this fast growing company.
The next company update should provide better insight into how their target market has responded to their proposition outside of an obviously shorter sales cycle. One to watch.
Research & Development Funding Update
LiveTiles Limited (ASX:LVT) (LiveTiles or the Company), the global leader in intranet software and AI & employee engagement products, is pleased to advise that it has today received $5.6m cash in relation to research & development tax refunds from the Australian Tax Office
LiveTiles' current price does not seem to reflect the apparent new opportunity post-COVID. Perhaps they are not taking advantage of or adapting to the new landscape.
Given how many companies were forced into remote working situations faster than they would have liked, they might have surprised themselves with internal change agility which devalues LiveTiles' proposition as a managed solution.
Taken directly from the ASX annoucement posted this morning before trading opened. Full Announcement here: https://www.asx.com.au/asxpdf/20200414/pdf/44gxmq94pmxq4x.pdf
Further notable information regarding cash burn:
One-off cost impacts, including FX impacts on US and European cost base, will see operating cash burn in the range of ~$9m for Q3, notwithstanding further growth in cash receipts. Material cost reductions have been implemented late in Q3 and early in Q4. Actions implemented and underway include:
ASX:LVT was up 17% at time of writing.
18 February 2020
Wizdom achieves earn-out following strong ARR growth and positive EBITDA
LiveTiles acquired Wizdom, Europe’s leading intranet software business, in February 2019.Wizdom has achieved strong ARR growth of 87%in the 13 month period to 31 January 2020(from $8.0 million to $15.0million), whilst also generating positive EBITDA.
The Wizdom acquisition, together with the CYCL acquisition completed in December 2019, has also extended LiveTiles’ clear global leadership of the rapidly emerging intranet software market, which LiveTiles estimates to be a $13 billion per annum market opportunity.
30 January 2020
Stronger Q2 ARR growth, cash receipts up, underlying opex beat guidance
LiveTiles delieverd a very encouraging market update on the 10th April, revealing a 208% jump in Annualised Recurring Revenue (ARR). In part this was helped by the completed Wizdom acquisition.
Currently, ARR stands at $34.5m and the company reiterated its target of $100m in ARR by the end of FY2021.
Us Gov Approval Very Good For LVT ? $ 1.50 Valuation Is Getting Closer ,,,,