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Why the LiveTiles Ltd (ASX:LVT) share price stormed higher today

One of the best performers on the local market in morning trade has been the LiveTiles Ltd (ASX: LVT) share price.

At the time of writing the intelligent workplace software provider’s shares are up over 8% to 53 cents.

Why have LiveTiles’ shares stormed higher today?

Investors have responded positively to the company’s trading update released this morning.

According to the update, LiveTiles has seen its annualised recurring revenue grow 275% year-on-year to $15 million as of the end of June. This is also a 34% increase since the end of the March quarter.

A key driver of this growth has been the company’s ongoing joint campaign with Microsoft in the North American market. This drove strong interest for its artificial intelligence solution from financial services, healthcare, manufacturing, professional services, and education companies.

In addition to this, the strategic relationship with sales and marketing consultancy and execution firm N3 has been progressing well. Its team of 60 dedicated sales and marketing personnel in New York have been generating high volumes of leads and sales opportunities.

In light of this, management expects the strong growth of its LiveTiles Bots offering to continue in FY 2019.

Should you invest?

I think LiveTiles is one of the most exciting small cap tech shares on the Australian share market alongside the likes of ELMO Software Ltd (ASX: ELO) and Volpara Health Technologies Ltd (ASX: VHT).

However, its annual recurring revenues are still only small in comparison to its market capitalisation which I estimate to be approximately $263 million after today’s gain.

Because of this, I intend to either wait for its revenues to catch up with its market capitalisation or its shares to come down to a more reasonable level. Until then I would suggest you put it on your watchlist if it isn’t already on there.

While you wait for LiveTiles to trade at a decent level, here are three mid cap tech stars you can buy today. Do you own them?

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