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LiveTiles Limited, large and rapidly-growing addressable market

Team Veye | 28 Oct 2020 ASX - LVT
LiveTiles Limited, large and rapidly-growing addressable market

LiveTiles Limited (ASX: LVT)

Accelerated ARR growth and another record Q1 cash receipts

LiveTiles Limited (ASX: LVT) (LiveTiles or the Company), the global leader in intranet and workplace technology software, on 27 October 2020 announced another quarter of record ARR and cash receipts, including substantial improvements in operating cashflow.

(Graphic Source – Company Reports)

  • Annualised recurring revenue (ARR) has grown to $57.1m, up 33% in the last year. On a Constant Currency basis, ARR has grown to $61.7m on a constant currency basis; up 44% in the last year and up 227% in 2 years.
  • Strong Q1FY20 customer cash receipts of $12.0m, a fourth consecutive record quarter and 41% higher than the prior corresponding period (Sep-19). Net operating cash outflow (excluding non-recurring items) of $(0.8) m, 90% improvement on the corresponding period last year. When combined with Q4-FY20 +$1.2m, operating cashflow is positive +$0.4m
  • Cash on hand at 30 September 2020 of $34.6m
  • Accelerated pipeline growth in the quarter and the successes of a refreshed product portfolio taken to market, demonstrated with a company record multi-million, multi-year deal across the LiveTiles Reach and LiveTiles Intranet products.

LiveTiles strengthens Microsoft US partnership after a record deal with major US retailer

LiveTiles Limited on 23 October 2020 announced that its relationship with Microsoft Corporation will be further strengthened under a new co-sell agreement, after securing a record license deal with a global athletic apparel retailer headquartered in the United States (US).

(Chart source: TradingView)

  • LiveTiles enters new co-sell agreement with Microsoft in the US
  • Microsoft US sales teams are being trained to sell LiveTiles Reach and LiveTiles Directory
  • LiveTiles and Microsoft US jointly marketing to retail, manufacturing and healthcare industries
  • LiveTiles secures largest ever LiveTiles Intranet deal (Data Source – Company Reports)

 

Veye’s Take

LiveTiles’ partnership with Microsoft had been instrumental in growing LiveTiles Intranet into the leading industry provider in just a few short years. LiveTiles secured a record deal with a leading US company for LiveTiles Reach and LiveTiles Intranet. Its annualised recurring revenue (ARR) has risen to $61.7 million on a constant currency basis, which is up 44% since last year and 227% in two years. The Company’s sales pipeline continues to show accelerated growth from both direct and partner sales channels as companies around the world look to implement COVID-19 re-opening strategies by embracing digital workplace solutions. In our earlier review, we had mentioned that the stock had moved up as per c wave, broke the low and now can have the potential to reach earlier high. The immediate resistance at $0.28 may hold it for some time. We maintain a “Hold” recommendation on “LiveTiles Ltd” at the current price of $0.255

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