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Bigtincan Holdings share price rises 10% on Q1 update

The Bigtincan Holdings Ltd (ASX: BTH) share price is up 10.92% to $0.66 at the time of writing, after the company released its quarterly report and appendix 4C this morning.

What did Bigtincan report for Q1 FY20?

For the September quarter, Bigtincan reported customer cash receipts had increased by 56% to $5.3 million. Cash payments also rose 25% to $8.5 million and included working capital changes and acquisition-related expenses. As a result, the sales enablement automation platform business posted an operating cash loss of around $3.1 million. 

For the quarter, Bigtincan also invested $4.8 million in cash in acquiring Veelo, Asdeq Labs and the final earnout payment to Fatstax. At quarter end, the company had $17.6 million in cash and remains well funded to execute its future growth plans. 

In September, Bigtincan conducted an institutional placement to raise $20 million (funds received in October) to primarily fund the acquisition of Xinnovation, Inc.. Xinnovation is a Boston-based leader in sales enablement for financial services organisations.

The acquisition was completed in October and will add key technology capabilities to the Bigtincan platform and ~$3 million in annualised recurring revenue. Moreover, the financial services vertical will present Bigtincan with green field market opportunities for additional growth. 

A key highlight for the quarter was the announcement of a signed reseller agreement with NTT Docomo INC.. The leading Japanese telco and systems integrator will be able to sell Bigtincan software-as-a-service solutions to its enterprise customers. 

Furthermore, the company also reported new wins with Fortune 500 companies such as Nike and Wyndham Destinations. Other notable customer wins included ABB (new European customer), Stratasys, BMT Group, Cogeco and Phoenix Contact

Outlook 

Bigtincan stated that it remains on track to meets it 30–40% organic revenue growth target in FY20 with retention rates expected to remain stable. 

Shares in Bigtincan have doubled in 2019, making it one of the best performing small-cap technology companies on the ASX. Other notable performers include Alcidion Group Ltd (ASX: ALC) and Audinate Group Limited (ASX: AD8)

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Tim Katavic has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd and AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Alcidion Group Ltd and AUDINATEGL FPO. 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.

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