The LiveTiles Ltd (ASX: LVT) share price is storming higher on Thursday after the release of its half year results.
In late morning trade the intelligent workplace platform provider's shares are up 4% to 26 cents.
How did LiveTiles perform in the first half?
At the end of December, the company's annual recurring revenues (ARR) had reached $52.7 million. This was an increase of 130% since the same time last year and 7.6 times compared to two years ago.
A jump in customer numbers was a key driver of this growth. Thanks to a combination of organic and acquisitive growth, recurring revenue customers lifted 72% over the 12 months to 1,031.
Also growing was the average ARR per customer. At the end of December it had increased 33% on the prior corresponding period to $51,000. Management advised that this reflects the company's growing presence in the enterprise market.
Supporting its sales growth was its growth in transacting partners. These are used to help scale and broaden the company's reach. The number of transacting partners grew 79% year on year to 199.
LiveTiles recorded a loss after tax of $21.5 million for the half, which was broadly in line with the same period last year.
At the end of the half, the company's cash balance was $46.6 million. This was thanks largely to its $55 million equity raising during the half, which was partially offset by an operating cash deficit.
"Enormous opportunity"
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, spoke positively about the half and remains very positive on the future.
He said: "LiveTiles is pleased with its record base of annualised recurring revenue and first half operational delivery, converting our ARR into revenue and improved operating cash flows. We are executing under a clear strategy."
"We were also thrilled to have the CYCL team join LiveTiles during the first half. This acquisition consolidated our position as the global market leader in intranet software, targeting a potential total market of $14 billion in its very early stages of adoption. With market penetration of 1% to date we see enormous opportunity to both drive intranet software adoption and extend the value of the intranet," he added.
Outlook.
The company advised that it expects to deliver another year of strong customer and revenue growth in FY 2020. This will be driven by its continued investment into its products, partners and sales and marketing channels.
Outside this, LiveTiles continues to pursue its short-term target of $100 million in ARR and sees significant market and growth potential beyond this level.
