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Bigtincan share price storms higher on strong FY 2020 result and guidance

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The Bigtincan Holdings Ltd (ASX: BTH) share price has been a positive performer on Wednesday following its full year results release.

At the time of writing the AI-powered sales enablement automation platform provider’s shares are up 5% to 92 cents.

How did Bigtincan perform in FY 2020?

Bigtincan was a strong performer in FY 2020 despite the pandemic and continued its meteoric growth.

For the 12 months ended 30 June 2020, Bigtincan reported revenue growth of 56% to $31 million. This includes organic growth of 38%, which was at the top end of guidance range. Also supporting its top line growth were the acquisitions of the Veelo, Asdeq Labs, and XINN businesses.

The company’s annualised recurring revenue (ARR) also grew at a rapid rate in FY 2020. It increased 53% year on year to $35.8 million.

Key drivers of this growth were a 57% lift in subscription revenue to $29.5 million and a 2-percentage point improvement in its retention rate to 89%.

At the end of the period the company’s lifetime value metric grew 70% from $112 million to $270 million.

Management commentary.

Bigtincan’s CEO, David Keane, commented: “FY20 was a successful year for Bigtincan as the Company continued to grow through the pandemic, with a focus on enterprise customers and on our technology, to take advantage of the tailwinds of digital and mobility adoption that are impacting the world.”

“During FY20, Bigtincan won the coveted CODiE Award for best sales enablement automation platform and continued its growth path with key metrics growing strongly, including ARR growth of 53% over last year, retention up to 89%, subscription revenue up 57%, and LTV up 70% demonstrating efficient growth with LTV/CAC at 3.9,” he added.

FY 2021 outlook.

Although the company acknowledges that the medium to long term impact of the pandemic is uncertain, it remains confident in its growth prospects.

Management notes that Bigtincan enters FY 2021 in a strong position with a leading technology platform and pipeline of innovations for the year ahead and beyond, an established and growing go to market team, and a well-funded M&A program.

In light of this, it is forecasting further strong growth in FY 2020.

It has provided ARR guidance of $49 million to $53 million and revenue guidance of $41 million to $44 million with stable retention.

In respect to its ARR guidance, this represents 36.9% to 48% year on year growth. Whereas its revenue guidance implies growth of 32.3% to 42% year on year.

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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. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and 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.

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