Artificial intelligence is the latest hot thing in technology market. When almost all big tech companies are making strides by using AI, there are certain small cap stocks trying to push their way through.
Beamtree Holdings Limited (ASX: BMT)
Beamtree Holdings Limited (ASX: BMT) reported a strong financial performance for FY24.
The results highlighted by a 21% increase in overall revenue, reached $27.6 million. The company's Annual Recurring Revenue (ARR) grew by 12% to $25.5 million, demonstrating solid recurring business. Non-recurring revenue saw a remarkable 129% increase, while recurring revenue rose by 9%. Significant operational improvements were evident, with a turnaround in operating profit to $0.4 million from a loss of $1.4 million in FY23 and a 58% increase in group EBITDA. Although cash flow slightly decreased to $5 million by year-end (30 June 2024), the overall financial health remains strong.
The 12% rise in operating costs reflects Beamtree's continued investment in innovation, positioning the company for sustained future growth.
Beamtree Holdings Limited secured the contract with Dr. Sulaiman Al Habib Medical Service Group (HMG). Winning a contract worth A$3.6 million is a significant achievement, especially in a sector as crucial as healthcare.
BMT is targeting a revenue growth of over 20% for FY25, alongside a commitment to delivering positive cash flow. The company projects a substantial 40% year-on-year growth in ARR, aiming to expand from $25.5 million in FY23 to $60 million by FY26. Beamtree is enhancing its organic growth while also broadening its operational scope. This includes the development of Canada-ready coding products and targeting the creation and deployment of UK-ready coding solutions. Additionally, Beamtree aims to achieve CE marking for its CDS product and deploy its first integrated coding platform proof of concept (POC) within Saudi Arabia. The company is also focusing on developing new coding opportunities across all healthcare sectors in KSA and plans to conduct coding reviews and deploy coding products in British Columbia and Ontario.
Beamtree Holdings Limited is poised for substantial growth, with its Annual Recurring Revenue (ARR) increasing at a compound annual growth rate (CAGR) of 12% from Q2 FY22 to Q4 FY24. Over the past three years, BMT has been actively engaging with the Saudi Arabian market, demonstrating the value and impact of its technologies and support.
Bigtincan Holdings Limited (ASX: BTH)
Bigtincan Holdings Limited has been presented with a preliminary, non-binding, and revised offer from Vector Capital Management, L.P. The offer suggests a price of $0.20 per share.
In FY24, Bigtincan strategised to transition the business to become cash flow positive and achieve EBITDA growth. The development of GenieAI in FY24 has been a transformative force for Bigtincan, positively impacting revenue growth and enhancing the company's market position.
By focusing on GenieAI, BTH has witnessed surge in Annual Recurring Revenue (ARR), with $1.5 million attributed to AI-specific offerings with a total of $1.8 million from AI-driven expansions and $5.6m in TCV impacted.
Bigtincan's outlook remains optimistic as it continues to innovate and expand its offerings in artificial intelligence, particularly in Learning, Coaching, and SearchAI. With a robust pipeline of over 120 AI-driven opportunities and significant contract additions, the company is poised for continued growth. Enhanced renewal progression, with the closure of over fifty contracts valued at $100k or more, reflects strong customer satisfaction and retention.
Source: Company’s Report
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