The Bigtincan Holdings Ltd (ASX: BTH) share price is jumping higher again in morning trade on Wednesday.
At the time of writing the AI-powered sales enablement automation platform provider’s shares are up 18% to a record-high of 82 cents.
Why is the Bigtincan share price jumping higher today?
This morning Bigtincan released its second quarter update and revealed another strong rise in its cash receipts.
According to the release, the company’s cash receipts increased 102% over the prior corresponding period to $9.1 million.
Also growing strong was Bigtincan’s annualised recurring revenues (ARR). At the end of December the company’s ARR reached $32.4 million. This represents an increase of 55% since this time last year.
Key drivers of this growth were strong demand from existing customers, the acquisition of Xinnovation, and the signing of new Fortune 500 companies. The latter includes global beauty giant Sephora.
At the end of the period Bigtincan had a cash balance of $27.4 million. This compares to cash and cash equivalents of $17.6 million at the end of the first quarter.
The company’s co-founder and CEO, David Keane, appeared to be pleased with the quarter.
He said: “This quarter Bigtincan continued to achieve strong growth delivering 55% annualised recurring revenue (“ARR”) growth over the previous corresponding period, with new customers wins and expansion in existing enterprise customers, as well as making the investments that are needed to support Bigtincan’s growing customer base. This quarter the company completed the XINN acquisition adding new people, technology, geographic and vertical market coverage, and completed the integration of Asdeq Labs, acquired in September.”
Management is confident that its strong growth will continue over the course of the full year.
It advised that Bigtincan is on track to deliver 30% to 40% organic revenue growth in FY 2020.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN 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.