ASX small-cap tech stock Bigtincan Holdings Ltd (ASX: BTH) has surged into the green on Thursday after the company posted its FY24 results.
Bigtincan shares are up by 12% to 13.5 cents at the time of writing, as investors show a positive reaction to the company's annual earnings.
Let's see what the company posted.
ASX small-cap tech share jumps on solid full-year results
Bigtincan's FY24 results have impressed investors with the following key highlights:
- Total revenue came in at $117.1 million, with a 38% revenue decline in the Europe, Middle East and Africa (EMEA) region
- Annualised Recurring Revenue (ARR) stood at $116 million
- Earnings before interest, tax, depreciation and amortisation (EBITDA) reached $11.3 million, up from a loss of $4.9 million in FY23
- Adjusted EBITDA doubled year over year to $16.2 million
- Produced free cash flow of $5.4 million, with full-year operating cash flow of $6.2 million
What else happened in FY24?
The ASX small-cap tech stock had a period of growth in FY24 in its journey to "become cash flow positive and achieve EBITDA growth".
Revenues came to $117 million, with around $116 million of this classed as annually recurring.
The company said sales were impacted by delays in some of its expiring contracts. Despite this, sales here in Australia were up 35% year over year.
While total sales were down roughly 5%, adjusted EBITDA increased by $16 million over the twelve months.
This stemmed from the "execution of the core customer base" alongside cost-saving measures taken by the company.
It also secured its second-largest deal ever with Align Technologies, which is set to produce total cotract value (TCV) of approximately $5 million over the next 3 years. This could impact the ASX small cap tech stock.
Bigtincan also launched 'GenieAI', a large language model, which management estimates will have $5.6 million of "TCV impacts".
What did management say?
Bigtincan CEO and co-founder David Keane emphasised the company's focus on profitable customers and investments in AI technology through GenieAI.
FY24 was a transformative year for Bigtincan. The team worked together to change the buying experience of the future for our customers in a dynamic marketplace. We adjusted our business and refocused on core profitable customers, while at the same time realigning our organization structures and investing in AI capabilities through GenieAI technologies
What's next?
Looking ahead to FY25, Bigtincan aims to capitalise on the momentum from FY24. The company expects further revenue growth driven by GenieAI technology.
Bigtincan has set an EBITDA target of $14 million or more, representing 20% growth, and anticipates an improved free cash flow position.
It also forecasts ARR to grow this financial year.
For FY25, Bigtincan is building on FY24 and anticipates a significant increase in revenue opportunities from GenieAI technology, combined with the impacts from strategic investments in
market development projected to enhance new and expansion opportunities, leading to a pipeline growth of over 25% in Bigtincan's Ideal Customer Profile (ICP) customers over June FY24. These growth strategies are designed to support revenue opportunities, underpinned by solid infrastructure prepared for future developments.
ASX small-cap tech share snapshot
This ASX small-cap tech stock is surging well into the green today as investors digest its FY24 results. Over the last 12 months, the share has fallen 66%.
