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Australian-founded global software company LiveTiles (ASX: LVT) has released an update on the performance of its recurring revenue and position at the end of the December 2018 quarter and shareholders were not left disappointed.

LiveTiles’ Annualised Recurring Revenue (ARR) was $22.9 million at the end of 2018, which was a 232 percent increase on 2017.

ARR is how LiveTiles measures the growth of its business and is the metric many of its peers in the Software as a Service (SaaS) industry use. LiveTiles says its growth rate in 2018 was
more than six times the average rate for its peers.

LiveTiles also noted a number of other outstanding achievements, including 350 percent growth in cash receipts in the December 2018 quarter when compared to the corresponding quarter in 2017 and average ARR per customer rising by 145 percent in 2018.

LiveTiles founder and CEO Karl Redenbach was proud to announce the result to investors, predicting more growth was to come in 2019, ”we are pleased that this has been yet another strong quarter of growth in ARR, which reached $22.9 million at the end of the quarter. The past 12 months has delivered a more than three-fold increase in ARR and we are confident our strong growth will continue in FY19.”

While LiveTiles has not named specific clients, it has counted all 598 of them and noted some of them include government departments and top consulting companies.

LiveTiles have also previously told investors it has a pipeline of sales opportunities of over $50 million, from just one of its sales partner, and the conversion of a number of these opportunities has contributed to its ARR performance in the December quarter.

Another area of growth was from its Hyperfish software, which was acquired by LiveTiles in June 2018. In just six months HyperFish’s ARR has more than tripled and it has subsequently exceeded its first earn-out target by achieving ARR of more than US$1 million by 31 December 2018.

The company told shareholders that several customers have purchased the Hyperfish software as part their LiveTiles Intelligent Workplace bundle and it expects the Hyperfish sales pipeline to contribute to further customer and ARR growth in 2019.

At the beginning of the March 2019 quarter, LiveTiles appointed David Vander as Global Growth Director. His appointment is expected to build new strategic relationships and commercial opportunities, furthering the company’s growth.

Read more: LiveTiles appoints former Microsoft executive for global growth

LiveTiles ended the quarter with a $22.5 million cash balance and anticipates a reduction in operating costs following a number of cost saving initiatives that were implemented during the quarter.

LiveTiles has begun 2019 with strong momentum. It recently unveiled its Gate Agent Assistant Bot, an AI bot that will help airline staff obtain information from the airline’s database quicker – ultimately reducing queue time at the airport. It also announced its first customer, ‘“a major US airline,” had signed up.’

Redenbach gave credit to sales partners, N3 and Microsoft, saying “ The N3 sales and marketing channel and our unique global partnership with Microsoft continue to build a very large pipeline of sales opportunities. We remain focused on converting this large and growing pipeline into new customers in FY19 and beyond”.

 

This content is produced by Star Investing in commercial partnership with LiveTiles. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.