Bigtincan (BTH.ASX) released their Quarterly and 4C today. From their announcement:

Q1 FY23 Cash Flow Highlights

• Total quarterly customer cash receipts of $37.7m, an increase of 162% vs Q1 FY22, and up from $31.3m in Q4 FY22, an increase of 20% Qtr on Qtr.
• Positive operating cash flow quarter, with cash operating payments of $37.5m (including $2.8m of one-off severance and other costs related to business adjustments conducted in the Quarter).
• Capitalised investments reduced by 25% from $4.7m in Q4 FY22 to $3.5m in Q1 FY23, as development projects were completed and new products came to market.
• Bigtincan achieved its fourth consecutive operating cash positive quarter, and fifth in six quarters.
• Bigtincan held $35.3m cash and cash equivalents as at 30 September 2022 and is on track to achieve cash flow breakeven in FY23.

Q1 FY23 Trading Highlights and Outlook

• Reached the 12-month anniversary of Brainshark acquisition, achieving positive financial and strategic benefits for Bigtincan’s multi-Hub business model.
• Bigtincan won market recognition including 2022 Sammy Award, and Software Reviews Sales Enablement Emotional Footprint.
• New customer wins in the Quarter included: HSA Insurance, Assurant, XPO Logistics, eBay. Expansion deals closed included: Cisco, Convatech, Anaplan, Cigna, Farmers, Fidelity, Seagate, Google and Allurion.
• Strong roadmap progression with new releases across all Hubs.
• Bigtincan is on track for FY23 guidance of ARR in the range of $137-143m and revenue in the range of $123-128m.
• FY23 positive adjusted EBITDA forecast to materially exceed FY22.

Another quarter of "positive operating cashflows" however Free Cash Flow was still negative at around -$3.6m. Although they did mention that $2.8m of this was relating to one off costs. Without these costs, operating cash flow would have been around $3.1m. I'm hoping that they are able to become free cash flow breakeven later this FY as they have stated is possible.

The Brainshark acquisition actually seems to be a positive as it generated $3.6m of NPAT for a company they bought for $116m a year ago.

BTH also updated on its announcement of the potential acquisition of Livetiles. Management mentioned that Livetiles has acknowledged the proposal but have had limited engagement. Seems like it is still very early stage at the moment as due diligence has yet been undertaken.

Overall a fairly good quarter from BTH. Still on the cusp of being Free Cash Flow positive and hoping that they are able to make the inflection point later this FY,

Disc: Held IRL and on Strawman.

Here we go... again..?

Bigtincan announced that they are in conversation to acquire Livetiles (LVT.ASX). Announcement below:

Bigtincan Holdings Limited (ASX:BTH) (“Bigtincan”, the “Company”), a global software company providing a leading AI-powered sales enablement automation platform, confirms (in response to recent media speculation) that it has made a confidential, non-binding, indicative proposal to acquire 100% of the share capital of LiveTiles Limited ACN 066 139 991 (LVT) by way of scheme of arrangement (Indicative Proposal).

Under the Indicative Proposal, LVT shareholders would be entitled to receive A$0.07 cash per share, less any dividends or distributions paid to shareholders after the date of the Indicative Proposal. The Indicative Proposal contemplates LVT shareholders being given the option to receive part of the consideration in the form of shares in BTH.

The Indicative Proposal is subject to a number of conditions, including (but not limited to): • completion of satisfactory due diligence;

• no disposal of any of LVT’s material assets;
• no material change to LVT’s assets or prospects; and
• entry into a scheme implementation deed on customary terms and conditions.

Discussions between BTH and LVT are preliminary in nature. No agreement has been reached and there is no certainty that any transaction will eventuate.

Announcement from Livetiles indicates that, should the acquisition go ahead, it will be funded through cash reserves and a capital raise.

Not sure what I feel about this. BTH has been on an acquisition trail for a while funded by a lot of capital raises and not sure shareholders will be willing to fund another acquisition for a company that isn't profitable (albeit at a very depressed share price).

Disc: Held IRL and on Strawman

Bigtincan released its Quarterly Report and 4C today. From their release:

• Total quarterly customer cash receipts of $31.3m, an increase of 113% from Q4 FY21 cash receipts of $14.7m, and in line with the Company’s forecasts for FY22.
• Cash operating payments of $31.2m (including Brainshark integration investments), a decrease of $2.6m from Q3 FY22.
• Bigtincan achieved its third consecutive operating cash positive quarter.
• Bigtincan held $39.3m cash and cash equivalents as at 30 June 2022.
• Annualised Recurring Revenue (ARR) of $120m at 30 June 2022, a 126% increase from 30 June 2021. 

Hard to determine if I like this set of results or not. Obviously maintaining positive operating cash flow is a good sign however this is not the full picture. BTH spent close to 6m in "investing activities" which meant that they burnt more cash than the last quarter.

They also mentioned that they made 2 immaterial acquisitions in the quarter to increase skills in particular verticals. This hasn't been announced previously to the market.

Management are still targeting free cash flow breakeven in FY23 and they should have enough cash to make it there without a raise but will be watching this closely.

Disc: Held IRL and on Strawman

Bigtincan announces $3.3m contract extension with global financial services company

Bigtincan Holdings Limited (ASX: BTH) (“Bigtincan”) confirms that it has signed an extension and expansion to an existing contract with Fidelity Workplace Services LLC. The relationship has contractual commitments through to 30 June 2025. This contract is the single largest contract signed to date using Brainshark technology. Brainshark, Inc was acquired by Bigtincan in September 2021. 

Bigtincan is also releasing its Quarterly Report and 4C tomorrow with an Investor briefing at 11am.

Disc: Held IRL and on Strawman

Bigtincan reported its quarterly this morning. From their release:

Q3 FY22 Cash Flow Highlights

• Total quarterly customer cash receipts of $34.3m, an increase of 181% from Q3 FY21 cash receipts of $12.2m, and on track against the Company’s forecasts for FY22.
• Cash operating payments of $33.8m including Brainshark integration investments.
• Bigtincan achieved $0.5m in positive operating cash for the Quarter, including payments of $0.6m in costs related to the integration of Brainshark.
• Bigtincan held $45.4m cash and cash equivalents as at 31 March 2022.

Q3 FY22 Trading Highlights and Outlook

• Bigtincan was awarded a Gold Medal in the 2022 SoftwareReviews Sales Enablement Data Quadrant Buyers Guide Report.
• Bigtincan conducted its FY22 Investor Product and Tech day detailing the Company’s product strategy.
• New wins showcased the growing strength of the multi-Hub product model.
• Product launches during the Quarter included launch of VR Showrooms, and Bigtincan for Salesforce demonstrate innovation and leadership in the market.
• Bigtincan is on track to achieve or exceed $119m in ARR and $109m revenue for FY22. 

BTH seems to be generating good cash receipts following the acquisition of Brainshark which they are now incorporating into their reporting. However cash outflows also increased and overall cash flow from operations was down compared to Q2. Most of this seemed to be related to an increase in staff costs. Another $4.4m was also spent on long term product development resulting in a free cash flow of around -$4m.

Given the SaaS business model and the fact that only $1.1m of cash receipts of the $34.3m was for multiyear deals, I'm hoping that there is further growth in Q4 which is usually quite a strong quarter historically and that the business can become free cash flow positive soon.

Disc: Held IRL and on Strawman.

Bigtincan released their quarterly results today (copied from their release):

Bigtincan Holdings Ltd December 2021 Quarterly Report & Appendix 4C 

Q2 FY22 Cash Flow Highlights

• Total quarterly customer cash receipts of $26.3m, an increase of 150% from Q2 FY21 cash receipts of $10.5m, and on track against the Company’s forecasts for FY22.
• Cash operating payments of $25.2m including operating payments for the first full quarter of Brainshark, and associated Brainshark integration investments.
• Bigtincan was $1.1m operating cash positive for the Quarter, including payments for a spend of $0.6m in costs related to the integration of Brainshark
• Bigtincan held $49.9m cash and cash equivalents as at 31 December 2021, with a strong accounts receivables position heading into the second half of FY22.

Q2 FY22 Trading Highlights and Outlook

• Annualised Recurring Revenue (ARR) growth to $112m at the end of the Quarter, an increase of 133% over December 2020 previous corresponding period with ARR contribution from Brainshark acquisition on track against company forecasts.
• Bigtincan continued its track record of new customer wins and expansions with wins including Konecranes, Clorox, Singer Equipment, Doma, Yokohama Tires and expansion in Genentech, Delta Airlines, Brookdale, Guess and ThermoFisher, with specific cross sell opportunities including RevRV, Convatech and Lion.
• Bigtincan released new versions across its three core hubs (Content, Learning, Engagement) offering new features and capabilities to continue Bigtincan’s market leadership position.
• Bigtincan is on track to achieve or exceed $119m in ARR and $109m revenue for FY22. 

Personal views:

Overall a decent quarter for BTH with operating cash flow being positive. Although there was 4.9m cash outflow in "non operating" investments. Their acquisition of Brainshark seems to be integrating well. I do like that they seem to have increasing cash receipts as shown in their graph below. Hopefully this translates to some level of profitability in the near future.

They also mentioned that they are working on some new products which will be shown at an "Investor Product and Technology Event" in mid Feb

Disc: Held IRL and on Strawman.

Quarterly Announcement from Bigtincan Holdings.

Below is coped from their announcement:

• Total customer cash receipts of $14.4m, an increase of 218% from Q1 FY21, demonstrating strong cash receipts in a seasonally quieter quarter, including $2.0m from existing BrainShark, Inc. (“Brainshark”) customers acquired during the Quarter. Cash receipts excluding Brainshark were $12.4m for the Quarter, an increase of 174% from the previous corresponding September 2020 quarter.
• Cash operating payments of $19.3m, an increase of 67% from Q1 FY21, and 31% higher than Q4 FY21, with $1.8m related to Brainshark operating cash payments.
• Brainshark cash flow recorded a net positive operating position of $0.2m.
• Total net operating cash flow of -$4.9m including initial integration and capital raising costs related to the Company's significant acquisition of Brainshark, investments into system infrastructure and the creation of the Data Products Group headed by Debra Cancro, continued to advance Bigtincan’s leadership in data science.
• Bigtincan held $55.7m in cash and cash equivalents at the end of the Quarter (post full and complete settlement of the Brainshark acquisition) and is well funded to continue executing its growth strategy. 

Good to see growth in cash receipts in what is a seasonally quiet quarter. Cash outflows were quite high however related to their acquisition of Brainshark. Hopefully can see them become operating cash flow positive again in the coming quarters as the Brainshark acquisition becomes embeded.

Management have guided for ARR of $119m+ and Revenue of $109m+ for FY22 putting them on P/ARR ~ 5.5, P/S ~ 6

DISC: Held IRL and on Strawman