Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season

Bigtincan gears up to report on January 24. Here’s what to expect.

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Key points

  • Bigtincan Holdings is set to report its quarterly earnings for the period ending 31 December 2021 on 24 January.
  • The company reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY1.
  • The consensus of analyst estimates has Bigtincan to report around $54 million in revenue for 1H FY22.
  • Shares have fallen more than 8% since January 1.

All eyes will be on the Bigtincan Holdings Ltd (ASX: BTH) share price on 24 January when it releases its quarterly report to investors.

The ‘sales enablement platform provider’ confirmed it will provide an overview of quarterly activities and cash flows for the period ending 31 December 2021 near the month’s end in an announcement today.

Specifically, the webinar will be hosted via Zoom at 11.00 am (AEDT) on 24 January 2022, per the release.

What can we expect from Bigtincan in its quarterly update?

Even though it was a robust performance from Bigtincan in 2021, including a 218% increase in cash receipts in October, this didn’t inflect positively on its share price – particularly in the back end of the year.

Shares ran down from a 52-week high of $1.47 in August and haven’t slowed down since, having closed less than 1% in the green yesterday at 93 cents.

During its last quarterly update, the company grew total customer cash receipts by 218% to $14.4 million year over year (YoY).

Cash operating payments were also up 67% to $19.3 million YoY whereas it reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million in FY21.

Probably the most interesting component of Bigtincan’s upcoming earnings release – especially for those investors familiar with the Bigtincan growth narrative to date – is commentary on how the Brainshark acquisition has synergised since completion.

Management had forecasted a 124% accretion to recurring income from the combined sources and estimate $119 million in ARR for FY22 following the acquisition.

Morgan Stanley notes these elements in their valuation of the company. The broker is constructive on Bigtincan and reckons it’s a buy right now, valuing the tech player at $2.10 per share.

With that kind of upside margin, the broker has big expectations for Bigtincan these coming 12-24 months.

The consensus of analyst estimates also has Bigtincan to report around $54 million in revenue for 1H FY22 and $58 million for the second half.

This is expected to carry through to gross profit of $45.6 million, which is a substantial jump of 116% on the last half, according to this consensus view. We will see how on track Bigtincan is in hitting these targets later this month.

For those investors interested in attending Bigtincan’s quarterly report investor webinar, one can register their interest by clicking here and following the prompts to register interest.

Bigtincan share price summary

In the last 12 months, the Bigtincan share price has swung from its 52-week highs in August and is now down 10.5% for the year.

The trend has spilled over into the new year and shares have fallen more than 8% since January 1, after collapsing a further 3% in the previous week of trading.

As such, Bigtincan is now trading at its May 2021 levels after consolidating more than 36% in the last 4 months.

Should you invest $1,000 in Bigtincan Holdings right now?

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended BIGTINCAN FPO. The Motley Fool Australia 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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