The Bigtincan Holdings Ltd (ASX: BTH) share price will be one to watch on Thursday after the AI-powered sales enablement automation platform provider released its half year results.
How did Bigtincan perform in the first half?
For the six months ended December 31, Bigtincan posted revenue of $14.3 million and annualised recurring revenue (ARR) of $32.4 million. This was a 51% and 55% increase, respectively, on the prior corresponding period.
At the end of the period the company's lifetime value metric was up 84% on the same time last year to $252 million. It also reported a 2% increase in its retention rate to 89%.
Also improving was the company's operating costs as percentage of revenue. They fell from 118% of revenue to 112% at the end of December. This led to a 22% improvement in its EBITDA margins, but not enough to prevent the company from posting an EBITDA loss of $1.9 million for the half.
On the bottom line, Bigtincan reported a half year loss after tax of $4 million. This compares to a loss after tax of $2 million a year earlier. It finished the period with a cash balance of $27.1 million and no debt.
What were the drivers of its growth?
During the half, Bigtincan continued to win new deals, expanded existing customers, and delivered on product innovation.
The company also introduced a new product offering – Bigtincan Ultimate+ at $65 per user per month. This product offers new ways for customers to take advantage of the full capability of the Bigtincan technology set.
In respect to its new customer wins, Bigtincan added some very big names to its client base during the half. These include Mastercard, Brown Brothers, Sephora, and Nike.
Outlook.
Bigtincan CEO, David Keane, was pleased with the half and appears positive on the future.
He said: "During the Half, Bigtincan has continued to execute on its vision of making every customer facing worker more confident and effective in how they work, whilst demonstrating to investors that the Company is well positioned to continue its growth trajectory with strong unit economics and overall financial progress."
The company advised that it remains on track to deliver 30% to 40% organic revenue growth in FY 2020, with stable retention as demonstrated by new wins and ongoing market execution.
