The LiveTiles Ltd (ASX: LVT) share price could be on the rise this morning after the intelligent workplace platform provider released its full year update.
How did LiveTiles perform in FY 2019?
According to the release, LiveTiles had a strong final quarter, leading to it recording a 167% increase in annualised recurring revenue (ARR) to $40.1 million.
Whilst some of this was due to the acquisition of the Wizdom business, it is worth noting that the company still achieved significant organic ARR growth of 114% over the 12 months.
The key driver of its impressive ARR increase was the winning combination of strong growth in both customer numbers and average ARR per customer.
The release explains that LiveTiles' customer numbers grew to 919 paying customers at the end of June, up over 71% from 536 customers a year earlier.
Management said: "The Company is continuing to broaden its global base of enterprise customers, driven by LiveTiles' portfolio of products, its ongoing sales and marketing investments and co-marketing initiatives with Microsoft and other partners."
This was complemented by an equally strong increase in its average ARR per customer. That increased 56% over the 12 months, "driven by ongoing growth in the Company's enterprise customer base, product cross-selling and bundling and increased penetration of the employee base of existing customers."
LiveTiles generated customer cash receipts of $7.9 million in the June quarter, up 130% on the prior corresponding quarter. This reduced its final quarter net cash outflow from operating activities to $6.2 million and left the company with a cash balance of $14.8 million. This balance doesn't include an estimated R&D refund of approximately $7 million relating to previous financial years.
For the September 2019 quarter, the company expects gross cash operating expenses to be approximately $15.9 million, reflecting measured growth in its cost base as it pursues its stated growth strategy.
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach appeared to be very pleased with the company's performance.
He said: "We are pleased to have achieved a record quarter of ARR growth, with organic ARR more than doubling over the past 12 months to $40.1 million, with this growth augmented by the successful acquisition of Wizdom in February 2019."
He also confirmed that the company continues to target ARR of at least $100 million by June 2021 and believes LiveTiles is well positioned to achieve this.
Also on watch today will be Redbubble Ltd (ASX: RBL) and Volpara Health Technologies Ltd (ASX: VHT) shares following the release of their respective updates.
