The Bigtincan Holdings Ltd (ASX: BTH) share price was on form again on Thursday following the release of its full year results.
The enterprise mobility software provider's shares ended the day 6.5% higher at 49 cents.
What happened in FY 2019?
For the 12 months ended June 30, Bigtincan delivered a 51% increase in revenue to $19.9 million. A key driver of this top line growth was an increase in organic contracted recurring revenue over the period.
At the end of the financial year the company's annualised recurring revenue (ARR) increased $8 million or 52% on the prior corresponding period to $23.4 million. $5.5 million of this ARR growth was organic, with the remaining $2.5 million coming from acquisitions.
Another positive was that its operating leverage is really starting to show as it scales. In FY 2019 the company saw a 5% improvement in its gross margin and a 32% reduction in its operating costs as a percentage of ARR.
This led to a 60% increase in gross profit to $17.5 million and only a 21% lift in operating expenses to $23 million. And while the company still made a loss after tax of $4.1 million, this was a big improvement on the $6.6 million loss it made in FY 2018.
Outlook.
Despite its strong revenue growth in FY 2019, Bigtincan is still only scratching at the surface of a lucrative global market opportunity. According to its results presentation, management estimates that its total addressable market will be worth US$5 billion by 2021.
In order to capture a slice of this massive market, the company is investing in sustainable growth. It is doing this through sales and marketing initiatives, research and development, and growing sales opportunities in non-US markets.
In light of this, it remains confident on its prospects in FY 2020 and has provided positive guidance for the year ahead. In FY 2020 management is targeting organic growth of 30% to 40%.
