The LiveTiles Ltd (ASX: LVT) share price is pushing higher on Thursday following the release of its second quarter and first half update.
At the time of writing the intelligent workplace software company's shares are up 2% to 25.5 cents.
What did LiveTiles announce?
This morning LiveTiles revealed another solid quarter of annualised recurring revenue (ARR) growth.
At the end of December the company's ARR reached $52.7 million. This represents year on year growth of 130%.
This was driven by second quarter ARR growth of $9.8 million. Which comprised organic ARR growth of $5.1 million and acquired growth of $4.7 million via the acquisition of CYCL.
LiveTiles' strong organic growth was achieved despite adverse foreign exchange movements and higher than normal churn from smaller customers. The average ARR per customer rose to over $51,000.
Also growing strongly was its total customer cash receipts. Cash receipts grew 162% on the prior corresponding period to $10.4 million.
Another positive was that its underlying operating expenses came in below guidance at $16.2 million. Operating cash burn was $6.7 million, which was an improvement on the underlying first quarter cash burn rate. This left LiveTiles with cash on hand of $46.6 million at the end of the first half.
Outlook.
Management continues to expect further strong growth in the second half of FY 2020.
It also reiterated its short term target of $100 million in ARR by June 2021. Beyond this, it sees significant market and growth potential.
In fact, management believes its total addressable market is worth $13 billion and is in its very early stages of adoption.
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, said: "LiveTiles is pleased with its record base of annualised recurring revenue and Q2 operational delivery. We are executing under a clear strategy."
"We were thrilled to have the CYCL team join LiveTiles during the quarter. This acquisition consolidated our position as 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 both drive intranet software adoption and extend the value of the intranet."
