The Bigtincan (ASX:BTH) share price is down 6%, despite strong growth

The Bigtincan Holdings Ltd (ASX: BTH) share price is falling today, despite the company posting revenue growth for the half-year.

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The Bigtincan Holdings Ltd (ASX: BTH) share price has plunged this morning despite the company posting growth in its half-year results.

In morning trade, the sales enablement automation platform providers' shares are down 6.12% at 92 cents a share.

Metrics point to continued growth

Bigtincan's first-half results for FY21 showed top-line revenue growth of 33% compared to 1H FY20. This equated to $18.4 million in revenue for the half. Notably, 95% of the company's revenue is now subscription-based. Additionally, annualised recurring revenue (ARR) hit $48.4 million at the end of December. This indicates a 50% increase over the prior half-year's result.

Furthermore, the lifetime value of the company's subscriptions expanded by 44% to $363 million. Bigtincan indicated that the company's customers continue to be diverse by vertical, with life sciences customers contributing the most towards ARR at 20%.

Operating expenses grew by 38% to $22.37 million for the half, as the company continues to invest heavily in its expansion through multiple acquisitions. During the first half, the company acquired Agnitio and Clearslide.

The land-and-expand strategy abroad has demonstrated progress, with 21% of Bigtincan's total active customer base increasing their use of the platform during the first half. This is in contrast to 16% in the prior corresponding period.

Outlook and guidance

Bigtincan outlined its expectation to be towards the top end of FY21 ARR guidance of $49 million to $53 million; and revenue of $41 million to $43 million. This forecast is on the basis of a stable exchange rate, given the company operates internationally.

The company also noted it foresees continued market tailwinds that will help grow the total addressable market. This larger market comes with larger opportunities, and Bigtincan expects potential for further accretive mergers and acquisitions to accelerate.

At the end of the period, Bigtincan remained well capitalised with $65 million in cash on the balance sheet to facilitate any further acquisitions.

Bigtincan CEO and co-founder David Keane commented:

1H FY21 again demonstrated the success of the Bigtincan growth strategy, with strong organic growth, smart acquisitions and growing industry recognition. The Bigtincan teams around the world continued to show their ability to build our technology innovation pipeline, and help some of the world's leading companies to solve their challenges for their customer facing teams in an increasingly digital and remote economy.

Bigtincan share price snapshot

The Bigtincan share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the past 12 months, with a return of 10.7%. The index on the other hand has lost 0.7% during the same period.

Bigtincan's market capitalisation is now roughly $405 million.

Mitchell Lawler 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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