'Transformational': Bigtincan (ASX:BTH) share price ignites on 142% revenue jump

What has investors pumped up about Bigtincan on Friday?

| More on:
A young women pumps her fists in excitement after seeing some good news on her laptop.

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

Key points

  • The Bigtincan share price is up 13% following a record result in the first half
  • Brainshark acquisition has helped the company to improve its EBITDA position
  • The company remains on track to exceed $119 million in annual recurring revenue in FY22

The Bigtincan Ltd (ASX: BTH) share price is firing on all cylinders today.

At the time of writing, shares in the sales enablement platform provider are up 13% to 83 cents.

Investors are getting behind Bigtincan after it achieved record results in the first half of FY22. Let's take a closer look at the details.

Bigtincan share price takes flight on outstanding growth

  • Record revenue of $45.9 million, up 142% over the prior corresponding period
  • Annualised recurring revenue (ARR) up 132% to $112 million
  • Adjusted EBITDA reaches $1.2 million from $3.6 million loss in prior period
  • Lifetime value up 98% to $741 million
  • Net retention firms 2% to 107%
  • Brainshark acquisition completed

What else happened during the first half?

The first half was dominated by the company's acquisition of Brainshark — a deal valuing the US-based sales enablement business at A$116 million. Since then, shareholders have been waiting to see whether this acquisition was a great catch, or if Bigtincan bit off more than it could chew.

In a promising sign, the Brainshark acquisition has now been completed and the company is said to be benefitting from it. For example, Bigtincan highlighted synergies as a key driver for the company's improvement in adjusted EBITDA.

In addition, cross-selling of services with Brainshark helped improve its net retention ratio to 107%. Not to mention, the $19.6 million revenue contribution. These positive indicators are being met with a strong Bigtincan share price today.

Notably, the record revenue result has not been detrimental to the composition of subscription-based revenue. Instead, subscription-based made up 98% of Bigtincan's record $45.9 million revenue in the first half.

Regarding customers, it was another big six-month period of locking in new customer wins and expansions. Some of these included deals with Reddit, Clorox, T-Mobile, Delta Airlines, and Guess.

What did management say?

Summarising Bigtincan's performance during the half, CEO David Keane said:

1H FY22 was a transformational period for Bigtincan as we announced, completed and executed on the Brainshark acquisition to further build on our investments in creating a leading platform for sales enablement on a global scale.

Thanks to the ongoing execution of our global team, during the Half Bigtincan was able to demonstrate our ability to improve operating metrics, realise growing efficiency and continue to create the technology that customers love.

What's next?

Offering an optimistic outlook, the company relayed to investors that it is well-positioned to continue its momentum into the second half. This was accompanied by Bigtincan's reassurance that it is on track to surpass $119 million in ARR and $109 million in revenue for FY22.

Heading into the second half, Bigtincan held $49.86 million in cash and cash equivalents. This represents a reduction of ~11%. However, total current assets increased ~22% on the prior half, mainly due to a $17.6 million upwards movement in 'trade and other receivables'.

Bigtincan share price snapshot

Despite the green display today, the Bigtincan share price remains in the negative over the past 12 months. The company's share struggled to find support since announcing the Brainshark acquisition back in August last year.

Shares are down 14.5% compared to the same time a year ago. Underperforming the benchmark index by approximately 17%.

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

More on Earnings Results

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

Up 50% in a year, are Xero shares a buy after Thursday's earnings results?

ASX investors reacted positively to Xero’s full-year earnings results on Thursday. Now what?

Read more »