Why the LiveTiles (ASX:LVT) share price is rocketing 20% today

The ASX share is on the receiving end of a much needed welcomed boost.

The LiveTiles Ltd (ASX: LVT) share price is one of the best performers on the ASX today. This comes after the employee experience software company announced it has secured a major deal with Fortune Global 100 company, Nestlé.

At the time of writing, LiveTiles shares are up an astonishing 20% to 18 cents.

Rocket launching into space

Image source: Getty Images

What's the deal?

Investors are fighting to get a hold of LiveTiles shares following the company's significant contract win.

According to its release, LiveTiles revealed that it has signed another large enterprise licencing deal with international company, Nestlé.

Headquartered in Switzerland, Nestlé is the world's leading nutrition, health and wellness company. The business has a market capitalisation of roughly US$333 billion and employs over 328,000 people worldwide.

Under the agreement, LiveTiles will deliver a range of products and services encompassing its employee experience solution. Around 125,000 users will adopt the initial phase. If successful, a second phase will take place where 300,000 people will participate in the program.

Most notably, the contract is a record signing for LiveTiles EMEA. The project integrated and rolled out services last month, and is scheduled to go live on 1 November 2021.

The contract is valid for a period of 3 years and will generate a minimum revenue of $2.1 million for LiveTiles.

LiveTiles co-founder and CEO, Karl Redenbach commented:

We're proud to be working with Nestlé and delivering an all-encompassing Employee Experience Platform solution to one of the world's biggest employers. To have a quality brand such as Nestlé signing with LiveTiles shows us that Employee Experience is now top of mind for the biggest employers in the world, particularly in a post-pandemic environment.

LiveTiles share price summary

While the LiveTiles share price is accelerating today, when comparing against the last 12 months, its shares are heavily down. The LiveTiles share price is sitting close to a 30% loss from this time last year, and 26% down year-to-date.

Based on valuation grounds, LiveTiles presides a market capitalisation of roughly $161 million, with about 912 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ASX Share Market News

a young boy dressed in a business suit and wearing thick black glasses peers straight ahead while sitting at a heavy wooden desk with an old-fashioned calculator and adding machine while holding a pen over a large ledger book.
Broker Notes

Is the Xero share price too cheap to ignore?

If the company's growth plans stack up, this share could be one to watch.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Man putting coins in a wooden piggy bank next to piles of coins.
Broker Notes

Are NAB shares cheap or expensive? Brokers can't agree

The experts have their say after this week's profit report.

Read more »

Happy investor on tablet with finance graphs rising in overlay.
Broker Notes

Could Goodman and Paladin Energy shares rise 20% to 80%?

Let's see why these shares are being tipped to charge higher from current levels.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Broker Notes

Clime Capital pays an 8.7% dividend yield. Pitt Street Partners says it's undervalued

A combination of dividends and capital gains could make this share one to watch.

Read more »

A boy holds up a lamp shining dimly in the dark.
Opinions

I hunted the ASX for shares that could end 2026 on a high: These 3 stood out

Find out why these ASX shares caught my eye.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
ASX Share Market News

5 things to watch on the ASX 200 on Friday

A selloff on Wall Street means Australia could be ending the week in the red.

Read more »

A man in a suit looks surprised as he looks through binoculars.
Broker Notes

These 3 ASX shares are on my watchlist for 2027

I've been on the hunt for value on the ASX.

Read more »