Bigtincan (ASX:BTH) share price seesaws after revenue surge

Shares in the Aussie tech company have been volatile on Thursday morning.

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The Bigtincan Holdings Ltd (ASX: BTH) share price slumped at the market open but has since pared back its losses following the group's full-year results release.

Bigtincan share price seesaws as revenue surges 42%

Some of the key takeaways from this morning's result include:

  • Annual recurring revenue (ARR) up 48% on the prior corresponding period (pcp) to $53.1 million
  • Group revenue up 42% on pcp to $43.9 million
  • Customer retention rate flat at 89%
  • Gross margin flat at 85%

What happened in FY21 for Bigtincan?

It was a big year for the Aussie sales enablement software provider. Bigtincan estimates an addressable market of more than $10 billion exists for the business with more than 500,000 licensed seats at 30 June 2021.

The software group diversified its recurring revenue base throughout the year across Life Sciences (20.1%), Technology (18.5%), Retail (17.2%), Telecommunications (14.2%), Financials (11.9%), Manufacturing (8.0%) and Other (10.0%).

The Bigtincan share price is up nearly 40% in 2021 having surged higher following yesterday's capital raising update.

Bigtincan grew its lifetime value (LTV) of customer subscriptions from $270 million in FY20 to $392 million as at 30 June. That was aided by strong organic and acquisition-based growth throughout the year with the purchase of Vidinoti, VoiceVibes, ClearSlide and Agnitio completed in FY21.

Bigtincan will also acquire Brainshark for US$86 million (A$116 million) in cash. The purchase will bring Bigtincan's sustainable ARR to $99 million with estimated organic growth of $20 million in FY22.

What's next for Bigtincan?

Bigtincan is targeting ARR above $119 million with revenue above $100 million for FY22. That includes ongoing growth from winning new customers as well as targeted, strategic acquisitions to take advantage of market conditions.

The Bigtincan share price has climbed 52.7% in the past 12 months and is trading just shy of its $1.60 52-week high. At the time of writing, the company's shares are changing hands for $1.49, up 2.76%.

Motley Fool contributor Ken Hall 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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