The LiveTiles Ltd (ASX: LVT) share price has been amongst the best performers on the ASX on Tuesday.
In morning trade the intelligent workplace provider's shares raced as much as 14% higher to 32.5 cents.
Why is the LiveTiles share price racing higher today?
Investors have been buying LiveTiles' shares this morning following the release of its first quarter update.
Although much of today's update had been pre-released earlier this month, a few extra details appear to have caught the eye of investors.
Firstly, as was previously reported, LiveTiles grew its annualised recurring revenue (ARR) to $42.9 million in the first quarter. This was up 7% on the previous quarter and 131% since the same period last year.
According to the release, a strong performance in the APAC region was offset by weakness in the United States and Europe. Management blamed the latter on seasonal buying patterns in these regions.
During the quarter LiveTiles generated customer cash receipts of $8.5 million. This was 252% higher than the prior corresponding period and the fourth consecutive record quarter for cash receipts.
Underlying operating expenses for the quarter came in at $16.4 million. This was above the estimate provided at the end of the last quarter of $15.9 million. Management advised that this was down to additional operating expenditures supporting its stated growth strategy.
Gross cash operating expenses are forecast to be ~$16.2 million in the second quarter. This reflects recent and planned cost measures and modest underlying growth in its cost base.
This ultimately led to net cash outflows from operating activities of $5.3 million. Though this included a $3.8 million R&D tax refund. Which left LiveTiles with a cash balance of $56.9 million at the end of the period.
Outlook.
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, said: "We are pleased to have achieved a record quarter of ARR, with ARR more than doubling over the past 12 months to $42.9 million."
"We are the global market leader in intranet software, targeting a potential total market of $13 billion in its very early stages of adoption. With market penetration of 1% to date we see enormous opportunity to drive both intranet software adoption and extend the value of the intranet into areas such as AI. We are laying the foundations for future growth with our global market presence, a strong focus on building new revenue streams, our partner channel and long term pipeline," he added.
Looking ahead, the company is confident it will deliver another year of strong customer and revenue growth in FY 2020. Furthermore, it remains focused on organically growing its ARR to at least $100 million by June 2021.
