Bigtincan (ASX:BTH) share price jumps 9% on quarterly results

A solid set of June quarterly results has pushed the Bigtincan share price into positive year-to-date territory.

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The Bigtincan Holdings Ltd (ASX: BTH) share price is soaring today after the company delivered its June quarter results.

Bigtincan shares opened at $1.07 before pushing 8.96% higher to $1.15 at the time of writing.

Bigtincan share price rallies

The sales enablement platform provider reported customer cash receipts for the June quarter of $14.7 million. This is a 40% increase on the prior corresponding period (pcp).

The company said “overall the quarter showcased a seasonally strong quarter with cash receipts up 20% from Q3 FY21, as Bigtincan continued to see strength in its enterprise-focused business model”.

Overall cash receipts for FY21 increased 29% on pcp to $41.9 million (adjusted for multi-year payments/contracts).

Pleasingly, the $41.9 million in FY21 cash receipts represents a 117% conversion against the company’s initial annual recurring revenue (ARR) of $35.8 million. The company cites this as a “strong execution of cash collection as well as the creditworthiness of our enterprise customers”.

Bigtincan reported ARR of $53.1 million at the end of FY21, or a 48% increase against the pcp. This growth was underpinned by “a combination of the company’s organic growth engine with top of the pipeline lead generation returning to pre-pandemic levels, and successful M&A adding new customers with increasing cross sell and upsell opportunities”.

FY21 revenue expectations

Reporting season is typically an exciting time for the Bigtincan share price. The 1H21 and FY20 results witnessed a significant -8.7% and 14.3% move in Bigtincan shares.

According to today’s announcement, the company is expecting audited revenue for FY21 to be in excess of $43.5 million.

This figure is in line and towards the upper end of its guidance of $41 million to $44 million.

Major customer wins

High-profile wins have been a driver of the Bigtincan share price in the past. Contract wins include US telco giant T-Mobile, and US based global financial services company, John Hancock.

In today’s announcement, the company highlighted notable customer wins for the June quarter include Fujitsu, AirFrance and Uber Eats.

In addition, Bigtincan said it continued to experience the “benefits of the land and expand business model with expansions in key customers including Allurion, BT Openreach, Genentech, Peter’s Surgical, Sage Publishing, and WL Gore”.

Management commentary

Commenting on another quarter of growth and acquisitions, Bigtincan CEO David Keane said:

This quarter the team executed globally to deliver strong results demonstrating the progress of our business model, strong underlying unit economics, and benefits of our organic growth engine combined with smart M&A to continue our mission of creating the buying experience of the future for our customers’ customers.

Bigtincan share price up in 2021

The Bigtincan share price is up 5% year-to-date.

Despite underperforming the S&P/ASX 200 Index (ASX: XJO), which is up 10.07% this year, Bigtincan’s performance is better than the broader tech sector.

The S&P/ASX 200 Info Tech (INDEXASX: XIJ) index has surprisingly slipped almost 4% in 2021.

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Motley Fool contributor Kerry Sun 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 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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