The LiveTiles Ltd (ASX: LVT) share price finished Thursday's trading session 5.26% higher at 30 cents, still only just above last week's 52 week low of 26 cents.
What did LiveTiles announce?
LiveTiles released its annual report for 2019 on Thursday morning. The report highlighted significant growth in revenue and customer base for the company. Annualised recurring revenue (ARR) for FY19 increased 167% from the year prior to $40.1 million. In addition, the number of paying customers improved 71% from the previous year. In FY19 total revenue and other income also grew 249% on the prior year to $22.5 million.
FY19 also saw LiveTiles expand its network of alliance and strategic partnerships in order to increase opportunities. The company's chief executive officer Mr Karl Redenbach highlighted further expansion in his address to shareholders. Mr Redenbach stated that "Our [LiveTiles'] strategy continues to align with Microsoft and extend our global market leadership in intranet software".
According to the annual report, the company's strategy is to target 300,000 organisations using the Office365 and SharePoint platforms. LiveTiles estimates that only 1% of the market has been penetrated in respect to intranet software.
In addition to its annual report, LiveTiles later announced that the company had been invited to present at Microsoft's largest global customer event. Microsoft Ignite will be hosted in the US in November, with over 25,000 attendees who are already subscribed to core Microsoft platforms.
LiveTiles president Mr Daniel Diefendorf will present on the topic of driving customer value and employee productivity through intranet solutions offered through Microsoft Teams. Mr Diefendor says that "the opportunities that LiveTiles is pursuing with Microsoft and through partnerships with Microsoft Teams will drive strong pipeline and recurring revenue impacts".
How has LiveTiles performed?
LiveTiles is a global software company that allows users to create intelligent workplace experiences. The company's cloud-based software management systems allow clients to use popular online software tools like Microsoft 365, Google Drive, communications through Slack and use Expensify for financial reporting.
LiveTiles has a co-selling agreement with Microsoft's field sales team allowing them to promote partner solutions. In return, Microsoft pays its sellers 10% of the total value of the partner solution. As a result, LiveTiles' core products such as Wizdom and Hyperfish can be deployed through the collaboration platform.
The company's management expects LiveTiles to deliver strong customer and revenue growth in FY20, with the key objective of ARR of at least $100 million by 30 June 2021.
