Why the LiveTiles (ASX:LVT) share price is avoiding the market selloff

The LiveTiles Ltd (ASX:LVT) share price is avoiding the market selloff and trading flat on Thursday. Here's why…

| More on:
A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The LiveTiles Ltd (ASX: LVT) share price has avoided the market selloff and is trading flat this morning.

At the time of writing, the workplace software provider's shares are fetching 21 cents.

Why is the LiveTiles share price avoiding the sell off?

LiveTiles appears to have escaped the market selloff today after investors responded relatively positively to its second quarter update.

According to the release, as of the end of December, LiveTiles' annualised recurring revenue (ARR) had increased 10.2% year on year to $58.1 million. 

This growth would have been stronger had it not been for the foreign exchange headwinds. In constant currency, LiveTiles' ARR would have grown 23% year on year to $64.7 million.

Management advised that this was driven by a small rise in customer numbers to 1,132 and an increase in average ARR per customer. The latter is now $57,245 per customer in constant currency, up 12% from this time last year. On a reported basis, the average ARR stood at $51,329.

Based on this, the company notes that its Customer Lifetime Value metric has reached $403 million.

Also growing nicely were its cash receipts. LiveTiles reported record quarterly cash receipts of $13 million. This was up 25% on the prior corresponding period and limited its net operating cash outflow to $2.7 million. The latter is a 56% improvement on the corresponding period last year.

Management commentary

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, commented: "We are pleased again with our overall Q2 results, achieving for the first time $13m in cash receipts in a single quarter. Our annualised recurring revenue (ARR) continues to grow every quarter and has now risen to $64.7m, a 200% increase over the last 2 years."

Looking ahead, Mr Redenbach appears positive on the company's growth prospects.

He explained: "Our sales pipeline continues to show accelerated growth from both direct and partner sales channels, with a large portion of the pipeline growth generated from our recently launched new product suites such as LiveTiles Reach, as companies around the world look to implement COVID-19 re-opening strategies by embracing digital workplace solutions."

 "We're confident LiveTiles products will continue to gain traction and our growth will continue to accelerate with it," he concluded.

Should you invest $1,000 in Bionomics right now?

Before you buy Bionomics shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bionomics wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Dimerix, Evolution Mining, Inghams, and NextDC shares are charging higher today

These shares are rising when many are falling today. But why?

Read more »

Smiling young woman eating chocolate outdoors.
Share Market News

The See's Candies playbook for ASX investors

Two ASX businesses that remind me of Buffett’s sweetest investment.

Read more »

Man smiling at a laptop because of a rising share price.
Opinions

My 2 favourite ASX sectors to invest in

Finding your groove can help your investing success.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Opinions

3 things I learned from Warren Buffett being the CEO of Berkshire Hathaway

The Oracle from Omaha is in his last year as CEO.

Read more »

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough trading day for ASX stocks this Monday.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in May

These stocks could be best buys this month according to the broker.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »