MENU

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

In morning trade the LiveTiles Ltd (ASX: LVT) share price is on course to have a strong finish to the week.

The software company’s shares are currently up almost 4% to 47.2 cents. At one stage they were up as much as 8% to 49.2 cents.

Why are LiveTiles’ shares surging higher today?

This morning LiveTiles released its update for the September quarter and revealed further growth in its annualised recurring revenues (ARR).

According to the release, LiveTiles saw its ARR reach $18.6 million by the end of the quarter, representing annual growth of 272% and quarter-on-quarter growth of 24%.

This means that LiveTiles is growing 5.8 times the rate of the software-as-a-service industry, though admittedly from a much lower base.

A key driver of this growth has been the appointment of N3 as its sales and marketing force. Management advised that the N3 team has been generating high and consistent volumes of leads and sales opportunities across the United States. This led to several new customers being secured from the N3 channel during the quarter.

Although the company has not provided names. Customers added during the quarter included one of the world’s leading entertainment companies, a US-based supermarket chain, a major Asia-Pacific airline, and a major Australian government-owned corporation.

LiveTiles co-founder and chief executive officer, Karl Redenbach, appeared to be very pleased with the quarter.

He said: “We are pleased to deliver another strong quarter of customer and ARR growth, together with continued growing awareness globally of LiveTiles’ brand and offering. The N3 sales and marketing channel is performing well, delivering a high volume of leads and a strong sales pipeline, which we remain focussed on converting into new customers.”

Before adding that: “Our partnership with Microsoft is stronger than ever, with our high-impact co-marketing activities continuing to strengthen awareness of our brand and offering and expected to continue to drive new customer and revenue growth in FY19.”

Should you invest?

I’ve been very impressed with the progress that LiveTiles has made over the last 12 months and was pleased to see this momentum continue in the September quarter.

While I’m not ready to invest just yet, its shares are close to the top of my watchlist.

In the meantime, I think fellow small cap tech shares Citadel Group Ltd (ASX: CGL) and Megaport Ltd (ASX: MP1) are in the buy zone.

Alternatively, here are three more top tech shares on the rise in FY 2019.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Citadel Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.