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LiveTiles share price zooms 8% higher on strong update

The LiveTiles Ltd (ASX: LVT) share price has continued its strong run and was up over 8% to 60 cents in early trade.

When its shares reached that level it meant they had gained an impressive 36% since this time last week.

Why is the LiveTiles share price charging higher today?

Investors were scrambling to buy the intelligent workplace software provider’s shares following the release of its fourth quarter update this morning.

According to the release, the company’s annualised recurring revenue (ARR) reached $40.1 million at the end of the quarter. This was a record quarter for the company and means its ARR rose 16.2% quarter on quarter from $34.5 million at the end of March 2019.

On an annual basis, LiveTiles’ ARR has grown by a whopping 167%. This has been driven by strong demand for its software and the benefits of its acquisitions. These have been performing well and are expected to provide strong cross-selling and bundling potential in FY 2020 and beyond.

Pleasingly, management remains positive on its medium term outlook and once again reiterated its target of organically growing its ARR to at least $100 million by the end of June 2021.

LiveTiles co-founder and chief executive officer, Karl Redenbach, was very pleased with the company’s performance in FY 2019.

He said: “We are pleased to have achieved a record quarter of ARR growth, with organic ARR more than doubling over the past 12 months to $40.1 million, with this growth augmented by the successful acquisition of Wizdom in February 2019.”

Elsewhere in the industry today, the Nearmap Ltd (ASX: NEA) share price has sunk lower following the release of its preliminary full year results this morning.

Although the aerial imagery technology and location data company delivered more explosive growth, some investors appear to have been factoring in even stronger growth this year.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap 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.