Here’s why the Bigtincan share price is jumping 10% today

What news did the company release today?

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Key points

  • Bigtincan has signed a deal with Oracle which increases its addressable market to 24% of the global CRM market
  • The company also revealed that it is targeting cash flow breakeven in FY 2023
  • Bigtincan remains on course to achieve or exceed its FY 2022 ARR guidance

The Bigtincan Holdings Ltd (ASX: BTH) share price is on the rise on Friday morning.

At the time of writing, the sales enablement automation platform provider’s shares are up 10% to 57.5 cents.

Why is the Bigtincan share price jumping?

Investors have been bidding the Bigtincan share price higher today after the company released a business update.

That update reveals that the company has signed a deal with tech giant Oracle, has set itself a cash flow breakeven target, and is on track to achieve its guidance in FY 2022.

In respect to the former, Bigtincan has signed a partnership with Oracle to join the Oracle Partner Network. This this program allows Bigtincan to create new technology offerings that work on the Oracle Cloud and integrate with existing Oracle solutions including Oracle CRM.

The release notes that the integration with Oracle allows sales reps to view client information from Bigtincan, create custom presentations, and send data to Oracle systems for updates.

This adds to Bigtincan’s Salesforce partnership and increases its addressable market to 24% of the global CRM market.

Cash flow target

Given how hard unprofitable tech shares have been hit during recent market volatility, news that management believes it can reach cash flow breakeven in the near future is likely to have been a boost to the Bigtincan share price.

Bigtincan has set a target of being cash flow breakeven in the FY 2023 year. And with a cash balance of $45.5 million at the end of March, it appears to have more than enough funds to see it through to that point.

FY 2022 guidance

Based on current planned new product releases, continuing logo wins, and upselling to its expanded existing customer base in the fourth quarter, Bigtincan believes it is on track to meet or exceed its FY 2022 guidance of $119 million in annual recurring revenue.

It also highlights that there are encouraging signs of increased cross sell and upsell opportunities in the Brainshark customer base.

The company’s CEO and Co-Founder, David Keane, said:

Building on the strong Q3 results, and with Bigtincan’s recurring revenue business continuing to grow in Q4, based on our multi-hub product strategy, and together with scale gained from the Brainshark acquisition we are seeing ongoing benefits for the short and longer term outlook.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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