Cash bonanza: Here’s why the Bigtincan share price is leaping 8%

Cash was king last quarter for Bigtincan Holdings.

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A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today

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Key points

  • Bigtincan posted its quarterly activities and cash flow update today
  • The company reported a large jump in customer receipts 
  • Bigtincan has $45.4 million in cash and cash equivalents on its balance sheet

Shares of Bigtincan Holdings Ltd (ASX: BTH) spiked at the market open this morning, soaring 7.9% to 68 cents after the company released its quarterly earnings update for Q3 FY22.

At the time of writing, ASX investors are paying 66 cents each for Bigtincan shares, up 5.6%.

Let’s take a look at the earnings update.

Bigtincan grows cash receipts 181% year-on-year

  • Total quarterly customer cash receipts of $34.3 million, an increase of 181% from Q3 FY21 (yoy)
  • Cash operating payments of $33.8 million including Brainshark integration investments
  • Operating cash flow positive $500,000 for the quarter. This includes $600,000 in costs related to the integration of Brainshark
  • $45.4 million in cash and cash equivalents on the balance sheet.

What else happened this quarter for Bigtincan?

The company notes that it was awarded a gold medal in the 2022 ‘SoftwareReviews Sales Enablement Data Quadrant Buyers Guide Report’.

It was ranked number one by users for its vendor capabilities and product features. The company said, “this level of market validation against direct competitors shows the power for the Bigtincan platform.”

Bigtincan also invested $4.4 million in its systems infrastructure and long-term development. This compares to $4.9 million in the previous quarter. These expenses came on the back of a mammoth 181% jump in customer cash receipts yoy.

Over the quarter, the Bigtincan share price fell by 17%.

What’s next?

Regarding its outlook, the company says that it is on track to “achieve or exceed” $119 million in annual recurring revenue (ARR) and $109 million in revenue for FY22.

The company secured a number of new customers including Lumen Technologies Inc (NYSE: LUMN), Lionco Pharmaceutical Group Co Ltd (SHA: 603669), Informa PLC (LON: INF), Panasonic (TYO: 6752), Genentech, American Express Travel (NYSE: AXP), Takeda Pharmaceuticals Co Ltd (NYSE: TAK), Abbott Laboratories (NYSE: ABT), Guardian, Arctic Wolf Networks, and Clarivate PLC (NYSE: CLVT).

Bigtincan share price snapshot

In the past 12 months, the Bigtincan share price has crumbled by 31%. It is down 37% this year to date, including a 20% drop over the past four weeks.

American Express is an advertising partner of The Ascent, a Motley Fool company. 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. has positions in and has recommended BIGTINCAN FPO. The Motley Fool Australia has positions in 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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