The LiveTiles Ltd (ASX: LVT) share price is pushing higher today following the release of its half year results.
In morning trade the intranet and workplace technology software provider's shares are up over 4% to 25 cents.
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How did LiveTiles perform in the first half?
For the six months ended 31 December, LiveTiles reported a 10% increase in annualised recurring revenue (ARR) to $58.1 million. On a constant currency basis, its ARR grew 23% over the prior corresponding period.
Also heading in the right direction was its operating expenses. Excluding non-recurring items, LiveTiles' operating expenses reduced by 27% to $23 million.
And while the company is still making a loss, it is narrowing. For the six months, LiveTiles recorded an operating loss of $2.3 million. This compares to an operating loss of $14 million a year earlier.
It was a similar story on the bottom line, with LiveTiles' loss after tax improving to $6.5 million from $15.9 million a year earlier. This improvement is being driven by strategic cost initiatives and continued revenue growth.
At the end of the period, LiveTiles had a cash balance of $19.4 million.
Management commentary
LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, appeared pleased with the company's performance during the half.
He commented: "LiveTiles is pleased to have added to its record base of annualised recurring revenue and cash receipts, and been able to reinvest into its marketing initiatives and direct sales strategy after a period of cost discipline. Importantly we have achieved all of this with a remarkable 84% improvement in our Adjusted EBTIDA for the half compared to the same period last year."
"LiveTiles is adding new products and features, strengthening longstanding partnerships, striking new ones, finding integration efficiencies and enhancing our brand awareness in enterprise space."
And while no guidance has been given, Mr Redenbach notes that the company has started the second half positively.
"We've started the calendar year with great momentum with our recent record customer win, which will help LiveTiles elevate itself as a clear leader in the Employee Experience industry and continue to win more Enterprise business," he concluded.
