The local market may have dropped lower in early trade, but that hasn't stopped the Livetiles Ltd (ASX: LVT) share price from zooming higher.
At the time of writing the software company's shares are up almost 10% to 45.5 cents. This latest gain means its shares have now climbed a remarkable 82% since this time last year.
Why are LiveTiles' shares zooming higher today?
This morning LiveTiles provided an update on its annualised subscription revenue (ASR) for the quarter ended March 31.
According to the release, ASR reached $11.2 million at the end of the quarter, up from $6.9 million at the end of the previous quarter and from $2.7 million 12 months ago.
This represents growth of 315% on the prior corresponding period and is almost 7x the software-as-a-service industry average.
Pleasingly, management expects strong ASR growth for the remainder of FY 2018 and beyond thanks to its sales and marketing investment, Microsoft co-marketing initiatives, and demand for recently launched artificial intelligence products.
Another key driver will be its strategic partnership with key Microsoft sales and marketing vendor, N3, which has boosted its sales and marketing resources in North America. N3 is the leading outsourced sales and marketing execution vendor for Microsoft's Azure and Dynamics platforms and services a global client base which includes SAP, IBM and Cisco.
Should you invest?
I think that LiveTiles is one of the most exciting tech shares on the local share market.
But with a market capitalisation beyond $200 million, it certainly does have a lot of future growth already built in.
Because of this, I plan to hold off an investment for the time being and wait to see if LiveTiles can continue its impressive ASR growth trajectory for a little while longer.
In the meantime, I would be buying the shares of Appen Ltd (ASX: APX) and Altium Limited (ASX: ALU) instead.
