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Key Points
- Bigtincan achieves sound performance for the December quarter period
- Integration of Brainshark progressing along smoothly
- Remains on track to meet or exceed FY22 targets
The Bigtincan Holdings Ltd (ASX: BTH) share price is lower today regardless of a positive trading update from the company. It appears the All Ordinaries (ASX: XAO) is dragging the company's shares lower following a heavy sell-off throughout the day.
At the time of writing, the enterprise mobility software company's shares are down 3.93% to 85.5 cents. On the other hand, the All Ords is also down by 0.56% to 7,448.5 points.
How is Bigtincan performing?
In its release, Bigtincan provided investors with a quarterly business update for the 2022 financial year.
For the 3 months ending 31 December (Q2 FY22), Bigtincan reported total quarterly cash receipts of $26.3 million. This reflected an increase of 150% when compared against the prior corresponding period (Q2 FY21) of $10.5 million.
Cash operating payments came to $25.2 million, which included operating payments for the first full quarter of Brainshark. This led to a $1.1 million positive cash flow for the company.
At the end of the period, Bigtincan declared a balance of $49.9 million in cash and equivalents.
What's ahead for Bigtincan?
While the company has made significant progress in the Brainshark integration program, annual recurring revenue (ARR) is expected to grow.
In the December quarter, Bigtincan achieved $112 million in ARR underpinned by cross sell/upsell opportunities from the Brainshark acquisition. Whilst this was a 133% lift over the previous comparable period, ARR is forecasted to be at least $119 million for FY22.
In addition, revenue is anticipated to be somewhere in the vicinity of $109 million for the current financial year. In contrast, Bigtincan reported $43.9 million in revenue at the end of FY21.
Bigtincan share price snapshot
Despite shooting to a 52-week high of $1.53 in August, the Bigtincan share price has moved lower in recent times. Its shares are currently down 18% when looking at the past 12 months.
Based on today price, Bigtincan has a market capitalisation of roughly $470.43 million, with approximately 547 million shares on issue.
