Bigtincan (ASX:BTH) share price steady amid 218% cash receipts increase

The first quarter puts the sales tech company on track for $119 million in annual recurring revenue…

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The Bigtincan Holdings Ltd (ASX: BTH) share price is edging slightly higher on Wednesday following the release of its first-quarter report of FY2022.

Shares in the sales enablement platform provider are being traded for $1.195, up 0.42% from yesterday’s closing price. This means the company’s shares are currently 22% away from their 52-week high, set back in late August.

Let’s pick apart the company’s first-quarter figures and try to understand what might be driving the Bigtincan share price today.

Bigtincan share price unmoved by significant growth

Although you might not have guessed it from the lack of share price movement today, the company delivered a big quarter of growth in Q1. For those short on time, here are some of the highlights:

  • Total customer cash receipts up 218% to $14.4 million year-over-year
  • Cash operating payments up 67% to $19.3 million year-over-year
  • On track to meet or exceed annual recurring revenue of $119 million in FY22
  • Total net operating cash outflow of $4.9 million
  • $55.7 million in cash and cash equivalents at the end of the quarter

What happened during the quarter?

The first quarter (ending 30 September 2021) of FY22 was a busy one for Bigtincan. Perhaps most notably was its acquisition of Brainshark and the associated $135.3 million capital raising in August. In one fell swoop, Bigtincan had acquired a leader in sales coaching, learning, and readiness.

Throughout the quarter, the company worked on integrating Brainshark through the unification of teams, product offerings, and market-facing activities. In addition, the company won new customers alongside the expansion of uses by existing customers.

New customers during the quarter included Alyaxis, Trinetx, and Bio-Rad Laboratories. Contract expansions were also won with Linx Cargo, Ashfield Healthcare, Reddit, State Street, and T-Mobile.

As a result, total customer cash receipts increased an astounding 218% year on year to $14.4 million. Even when excluding the contribution from Brainshark, customer receipts for the company increased 174% compared to the previous corresponding period. Despite this, the Bigtincan share price remains relatively unchanged today.

Further investments into infrastructure took a toll on net operating cash flow. Bigtincan reported a total net cash outflow of $4.9 million during the quarter. However, the additional investments in data products were to the benefit of the company’s lead in data science.

What did management say?

Commenting on the results, Bigtincan CEO and co-founder David Keane said:

Bigtincan’s team continued to execute our global vision of creating the Buying Experience of the Future for the world’s leading businesses and welcome the added value of Brainshark. As we grow, we believe we can do more at scale to create that future, whilst delivering exciting product offerings that make a difference to our customers and the industries in which they operate.

Bigtincan holds a strong cash position and a clear roadmap for growth, positioning the Company well for Q2 FY22, as we continue to execute on our strategy and deliver further value for customers, employees and investors.

What’s ahead for the Bigtincan share price?

Looking forward, investors will now be getting set for the company’s FY21 annual general meeting. This is expected to be held on 24 November 2021.

Additionally, Bigtincan believes it is on track to achieve or exceed revenue of $109 million in FY22. Based on FY21’s revenue of $43.9 million, this would suggest a potential increase of 148% year on year for revenue.

Despite these lofty growth projections, the Bigtincan share price is down 4.3% in the past 12 months.

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Motley Fool contributor Mitchell Lawler 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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