The LiveTiles Ltd (ASX: LVT) share price has avoided the market selloff and is trading flat this morning.
At the time of writing, the workplace software provider’s shares are fetching 21 cents.
Why is the LiveTiles share price avoiding the sell off?
LiveTiles appears to have escaped the market selloff today after investors responded relatively positively to its second quarter update.
According to the release, as of the end of December, LiveTiles’ annualised recurring revenue (ARR) had increased 10.2% year on year to $58.1 million.
This growth would have been stronger had it not been for the foreign exchange headwinds. In constant currency, LiveTiles’ ARR would have grown 23% year on year to $64.7 million.
Management advised that this was driven by a small rise in customer numbers to 1,132 and an increase in average ARR per customer. The latter is now $57,245 per customer in constant currency, up 12% from this time last year. On a reported basis, the average ARR stood at $51,329.
Based on this, the company notes that its Customer Lifetime Value metric has reached $403 million.
Also growing nicely were its cash receipts. LiveTiles reported record quarterly cash receipts of $13 million. This was up 25% on the prior corresponding period and limited its net operating cash outflow to $2.7 million. The latter is a 56% improvement on the corresponding period last year.
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, commented: “We are pleased again with our overall Q2 results, achieving for the first time $13m in cash receipts in a single quarter. Our annualised recurring revenue (ARR) continues to grow every quarter and has now risen to $64.7m, a 200% increase over the last 2 years.”
Looking ahead, Mr Redenbach appears positive on the company’s growth prospects.
He explained: “Our sales pipeline continues to show accelerated growth from both direct and partner sales channels, with a large portion of the pipeline growth generated from our recently launched new product suites such as LiveTiles Reach, as companies around the world look to implement COVID-19 re-opening strategies by embracing digital workplace solutions.”
“We’re confident LiveTiles products will continue to gain traction and our growth will continue to accelerate with it,” he concluded.