The Bigtincan Holdings Ltd (ASX: BTH) share price is having an explosive finish to the week.
In early trade the AI-powered sales enablement automation platform provider's shares rocketed as much as 45% higher to 38.5 cents.
At the time of writing they have dropped back a touch, but are still up 34% to 35.5 cents.
Why did the Bigtincan share price rocket higher?
Investors have been fighting to get hold of its shares this morning following the release of an update.
According to the release, the company has continued to experience strong demand for its services despite the COVID-19 outbreak.
Management believes this reaffirms its view that any short-term market disruption should not affect the underlying long-term demand for Bigtincan's products.
Furthermore, while the situation is evolving rapidly, Bigtincan is in a strong position with an established global customer base, including many Fortune 100 and 500 companies, and available cash of approximately $27.1 million as at December 31.
The company also advised that it has implemented a strategic response plan to ensure the continuity of its service delivery, while ensuring the safety of its teams during any COVID-19 related disruption.
FY 2020 guidance update.
In light of the strong demand it is experiencing, management has reaffirmed the guidance it provided with its half year results last month.
It continues to expect year on year organic revenue growth in the range of 30% to 40% with stable retention.
Management added: "Importantly, the majority of Bigtincan's income is derived from contracted and recurring revenues with subscription revenue representing approximately 95% of total revenue. Bigtincan's typical contract length is at least one year. In addition, Bigtincan's customer base is diversified across several industry sectors and geographies, with no single customer accounting for greater than 10% of ARR as at the end of first half FY20."
