The Bigtincan Holdings Ltd (ASX: BTH) share price is ending the week on a high.
At the time of writing, the ASX artificial intelligence (AI) share is up 17% to 34.5 cents.
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Why is this ASX AI share shooting higher?
Investors have been buying the AI-powered sales enablement automation platform provider's shares following the release of a business update.
According to the release, the company is undertaking a cost reduction program that will reduce normalised operating expenses by approximately 10%. This involves a reduction of full-time roles and adjustments in contractor and program spending, with a focus on non-customer-facing roles in the USA.
Management notes that this builds upon efficiencies achieved in FY 2023, which helped the company transition to cash flow breakeven.
Takeover interest
Also giving the ASX AI share a boost has been an update on potential takeover interest.
The company revealed that it has received a number of expressions of interest regarding potential control transactions. Bigtincan has established a data room to facilitate due diligence investigations for those interested parties whose expressions of interest are considered to be worthy of further investigation.
At present, multiple interested parties are active in the data room and the process is well progressed. However, management warned that there is no certainty any transaction will eventuate.
Outlook
Bigtincan has also released an update on its outlook for FY 2024.
Based on progress in the first half, Bigtincan sees Multi-Hub growing to 30%+ of ARR, revenue from Generative AI technology to commence, and retention to return to stable historic levels with continued new logo and expansion growth in FY 2024.
Management also highlights that its cost reduction program will enable the company to further build on metrics achieved in FY 2023. These are positive cash flow, as well as ARR, revenue and EBITDA growth.
