The LiveTiles Ltd (ASX: LVT) share price is finding momentum on Thursday. Shares in the software company are trading with a shade of green following the release of its first-quarter numbers for FY2022.
While shares have retraced to 12.5 cents, up 4.2%, earlier they were as high as 13 cents apiece. Although the move is in the positive direction, the LiveTiles share price is still 59% below its 52-week high.
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LiveTiles share price rallies on record cash receipts
- Cash receipts growth of 22% year on year to a record $14.6 million
- Annual recurring revenue (ARR) increased 13% to $64.5 million
- Average ARR per customer up 23% year on year to $62,900
- Net operating cash outflow of $1.1 million, representing an improvement of 58% on previous quarter
- Trailing 12 months of cash receipts grew by 22% year on year to $54.4 million
- Finished the quarter with a cash position of $20.9 million
What happened during the first quarter?
Giving the LiveTiles share price something to be green about, the company demonstrated further growth during the first quarter of FY22.
Given that the company is in the loss-making stage of its life, top-line growth is particularly important. Thankfully, LiveTiles followed through with an extra 13% boost to its ARR in Q1, taking it to $64.5 million.
Likewise, cash receipts (which is the revenue recognised during the quarter) increased 21% to $14.6 million. This was likely a product of larger revenues per customer, as well as more customers being signed to its digital solutions.
Speaking of which, a number of notable additions to its customer list were made during the quarter. This included a United States investment manager, a United Kingdom city council, a global chocolatier based in Europe, and a German aeronautics manufacturer, to name a few.
In terms of operations, the company rolled out a major project with a Catholic school. This entailed 10,000 users across the network using LiveTiles intranet. In addition, LiveTiles Reach (a communication app) was successfully deployed to a large Australian Hospitality business.
The increase in revenue from customers also floated to the bottom line. While LiveTiles posted a net operating outflow, it was reduced from $2.5 million in Q1 FY21 to $1.1 million. This could be acting as another positive catalyst for the LiveTiles share price today.
What did management have to say?
Commenting on the record quarter, LiveTiles co-founder and CEO Karl Redenbach said:
Having focussed on a disciplined approach to the implementation of our strategic review, it is pleasing to see a continued improvement in both underlying and top-line growth. Our ARR continues to grow every quarter and has now risen to $64.5m, up +13% to the pcp.
Our ongoing focus on disciplined cash management is continuing with a 56% improvement in operating cashflows in the quarter when compared to Sep-20; and supported by a record-equalling cash receipts quarter of $14.6m
Looking forward, the company is focused on implementing recommendations from its recent review. Meanwhile, in terms of finances — management says it's in a good position — with a focus on cash generation being front of mind.
Finally, there are more than 500 qualified leads for the company to pursue after a recent event. The "Let's Connect" event, with noteworthy author Simon Sinek, attracted over 4,300 attendees.
The LiveTiles share price is down 54% in the last 12 months.
