But thankfully for its shareholders, there's reason to smile at long last on Tuesday.

In morning trade, the intranet and workplace technology software provider's shares are up 22% to 6.6 cents.

Why is the LiveTiles share price rocketing higher?

Investors have been bidding the LiveTiles share price higher today after it was confirmed that the company has received a takeover proposal.

According to the release, sales enablement platform provider Bigtincan Holdings Ltd (ASX: BTH) has tabled a confidential, non-binding, indicative proposal to acquire LiveTiles by way of scheme of arrangement.

Under the indicative proposal, LiveTiles shareholders would be entitled to receive 7 cents per share, less any dividends, or distributions paid to shareholders from this day onwards. And while Bigtincan is offering cash to acquire the company, shareholders will be given the option to receive part of the consideration in the form of Bigtincan shares.

Based on LiveTiles' shares outstanding of 923,221,306, this implies a takeover price of approximately $65 million.

However, it is worth noting that discussions between the two parties are preliminary in nature and no agreement has been reached. Bigtincan also warned that there is no certainty that any transaction will eventuate.

LiveTiles has also responded to the news this morning and echoed Bigtincan's warnings. It commented:

The Board of LiveTiles will carefully consider the Proposal and advise shareholders of its views once the Proposal has been assessed. In the meantime, shareholders should not take any action in response to the Proposal. There is no certainty that the Proposal will lead to a definitive transaction or offer being made for LiveTiles.

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Fortunately for those invested in these three stocks, they've avoided the drama. Indeed, they've each rocketed more than 10% on Tuesday despite their collective silence.

For comparison, the S&P/ASX 200 Information Technology Index (ASX: XIJ), home to the market's biggest tech stocks, is recording a 0.4% gain right now. Meanwhile, the broader S&P/ASX All Technology Index (ASX: XTX) has slumped 0.8%.

The All Ordinaries Index (ASX: XAO) is also up 0.4% right now, while the S&P/ASX 200 Index (ASX: XJO) is boasting a 0.5% gain.

So, what might be driving these ASX tech shares sky high today? Let's take a look.

3 ASX tech shares gaining more than 10%

Silex Systems Ltd (ASX: SLX)

The Silex Systems share price is leaping 10.2% today to trade at $3.45.

It had soared even higher earlier today to reach $3.53. That's mere cents off the all-time high of $3.55 it hit last month.

The company is in the process of commercialising its SILEX laser enrichment technology. The tech can be used to produce and enrich uranium for nuclear power and silicon for quantum computing.

Livetiles Ltd (ASX: LVT)

The Livetiles share price is also surging 10.5% today. It's currently trading at 4.2 cents.

There's been no news from the ASX tech share on Tuesday. However, it fell 5% yesterday and 9% on Friday. Thus, today's gain could represent a sort of correction.

Livetiles develops digital workplace software. It's planning to delist from the ASX later this year.

K2FLY Ltd (ASX: K2F)

Finally, ASX tech share K2Fly is also soaring higher, lifting 10.5% to reach 21 cents.

Like Livetiles, the stock tumbled 5% yesterday, potentially explaining some of today's rise.

The tech share operates a software-as-a-service business for those involved in asset-intensive sectors such as mining, utilities, oil and gas, and rail.  

The post 3 ASX tech shares leaping by more than 10% on Tuesday appeared first on The Motley Fool Australia.

Livetiles shares have plunged in value today. The ASX tech share is presently down by a painful 52.54% at just 2.8 cents per share at the time of writing. We do not have to look too far to see why ASX investors are abandoning this company.

Before today, Livetiles shares had actually been in a trading halt since Thursday last week. Before that, the company's shares had been under increasing pressure following a disappointing quarterly update delivered on 25 July.

Livetiles did report a 17% increase in operating revenues against FY2021. However, its cash receipts for the three months ending 30 June came to $12.9 million, a year-on-year decline of 11%.

Upon the release of this update, Livetiles shares fell by more than 30%. As of today, the company is now down by close to 70% since 22 July. It's also down by 72% over 2022 thus far.

Following the release of this update, on Thursday 28 July the company requested a trading halt "pending it releasing an announcement". Well, we now know what this announcement is.

Livetiles shares are leaving the ASX

This morning, the company revealed it is "voluntarily delisting" from the ASX boards.

Here's why Livetiles stated it is abandoning its public listing:

The Delisting is considered by the Company's Board (Board) to be in the best interests of the Company for a number of reasons, including underperformance of the trading price of the Company's shares, relatively low levels of trading liquidity and a number of flow on consequences…

These factors, as well as the costs and administrative burden of remaining listed on ASX, outweigh the benefits associated with remaining listed.

The company also declared that "the trading price of the Company's shares in recent years implies a valuation that has been (and remains) consistently and materially lower than the valuations of unlisted companies of a comparable nature and stage to LiveTiles".

It also notes that "LiveTiles is well funded and has no intention to raise equity capital in the near term". But any future capital raising will be easier as a private company.

Livetiles will hold a general meeting on 5 September. This will allow shareholders to vote to approve this delisting. If that goes ahead as planned, Livetiles shares will be suspended from the ASX on 6 October and delisted the following day.

The post Down 72% in 2022, Livetiles shares are now delisting from the ASX, here's why appeared first on The Motley Fool Australia.

At the time of writing, the ASX tech share is trading more than 31% lower at 5.8 cents apiece.

LiveTiles share price dives on Q4 results

Key takeouts from the period include:

• FY22 operating revenues (unaudited) of $52.8 million, up 17% on FY21
• Contracted license user base of 2.77 million at 30 June 2022, up 20% from 30 June 2021
• Cash receipts of $12.9 million for the June quarter, delivering $56.7 million for FY22, a 10% year-on-year increase
• Net operating cash flows were a loss of $2.3 million for the quarter
• Cash position of $13.1 million at 30 June 2022
• Additional $4 million available to draw from the OneVentures debt facility, providing total available cash of $17.1 million
• $65.6 million ARR at 30 June 2022, up 4% year on year
• Trailing 12-month (TTM) customer net annual recurring revenue (ARR) retention of 91% at 30 June 2022

What else happened for LiveTiles last quarter?

LiveTiles printed Q4 FY22 cash receipts of $12.9 million, a decline of 11% year on year. This was underscored by approximately $1.7 million in lower-than-expected customer receipts due by 30 June.

The company says these "were delayed and not received in time," and that 60% of the expected collections have since been received.

Operating revenues were $52.8 million for FY22, up 17% from FY21. The growth was driven by increasing software subscriptions.

Contracted user licenses reached 2.78 million at 30 June 2022. This was up 20% from the same time last year. LiveTiles Reach also continued to expand, up 79% over the 12-month period.

LiveTiles also secured a key customer upsell deal in Q4. This will comprise an initial $200,000 in software and $900,000 in services over three years, the company says.

The customer – an international law firm domiciled across the United States and Europe – has committed to the full employee experience (EX) offering.

Management commentary

Speaking on the results, LiveTiles co-founder and chief executive officer Karl Redenbach said:

The June quarter marks one of strong operational achievements with the completion of integration of The Human Link and the formal launch of our Employee Experience Academy.

These milestones represent a great opportunity for us to further expand our global footprint and lay the foundations for continued commercial growth through expanded distribution of our proprietary products globally.

We remain confident LiveTiles is well positioned to consolidate its place as a leader in the Employee Experience market and continue to deliver growth through the next 12 months.

LiveTiles share price snapshot

The LiveTiles share price has slipped 42% into the red this year to date, leading to a more than 62% loss over the past 12 months.

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The S&P/ASX All Technology Index (ASX: XTX) plunged 5.3% on Thursday while the S&P/ASX 200 Information Technology Index (ASX: XIJ) fell 6.4%. For context, the S&P/ASX 200 Index (ASX: XJO) fell 2.9% yesterday.

They're both recovering today, gaining 3.7% and 7.2% respectively, while the ASX 200 is down 0.01%.

Meanwhile, the LiveTiles share price is trading at 8.8 cents – 8.64% higher than it was at yesterday's close.

That brings its gains for the past 2 sessions to an impressive 20.54%.

Let's take a look at what's been driving the tech company's stock higher lately.

What's been boosting this ASX tech company's share price?

The LiveTiles share price took off yesterday on the back of the company's earnings for the first half of financial year 2022.

For those not familiar with LiveTiles, it provides software for workplaces, allowing employee collaborations and communications.

LiveTiles' stock surges on maiden profit

• Operating revenue of $26.7 million – 32% higher than the first half of financial year 2021
• Maiden positive earnings before interest, tax, depreciation, and amortisation (EBITDA) of $4.3 million – $19.2 million more than the prior period's $14.9 million loss
• Net profit after tax (NPAT) of $1.3 million – its first positive NPAT, up from a $21.5 million loss
• Annual reoccurring revenue of $65.2 million – 12% higher
• Operating cash flow of around $440,000 – $13.5 million more than that of the prior period.

Over the first half, LiveTiles grew its contracted licence base by 59% to $2.7 million.

That saw it boosting its revenue while maintaining costs at $26.4 million – a 3% increase.

Additionally, its customer receipts improved 18% to $30.1 million. Its subscription revenues also surged 45% through upselling and cross-selling.

Though, LiveTiles' software related services revenue fell 5% due to fewer complex custom intranet deployments.

At the end of the half, the ASX tech company had $17.6 million of cash and $4 million of undrawn debt facilities.

What else happened in the half?

The first half was a busy period for LiveTiles and its share price.

The company took a 19.9% interest in Australian cognitive artificial intelligence (AI) development company, BrainPac for $900,000.

It also announced an agreement to acquire Portuguese digital workplace software company, BindTurning over a 24-month period. An initial purchase of a 19.99% stake in the company will cost LiveTiles US$540,000.

LiveTiles will fork out another US$9.46 million for the remaining 80.01% of BindTurning if the Portuguese company reaches an annual reoccurring revenue milestone in the 24-month period.

Additionally, a partnership that will see LiveTiles purchasing a 19.97% stake in My Net Zero, was agreed to in December. The stake will cost the company $985,000.

The partnership will see LiveTiles' customers able to build a scope 4 emissions net-zero pledge, capture data about net zero plans, and communicate and collaborate with others undergoing a net-zero journey.

Finally, the company has recently purchased a 10% stake in Canberra's Hide & Seek – a digital design and UX consulting business.

The stake cost LiveTiles $250,000 and will see it increasing its footprint in the capital alongside an advisor to many government departments.

Despite a busy period for the ASX tech company, the LiveTiles share price fell 28% between the final close of financial year 2021 and 31 December 2021.

What did management say?

LiveTiles co-founder and CEO Karl Redenbach commented on the company's half year results, saying:

LiveTiles is pleased to have produced a strong half of revenue growth … The company's performance and results for this half are a credit to the focus and dedication of the entire LiveTiles team given the uncertain environment we have been operating in.

We have full confidence in our product and believe that the relaunch to our brand in 2021 and a renewed focus in sales and marketing will drive continued growth.

We have maintained a disciplined approach with expenses and will continue to look at strategic ways to enhance and innovate our product offering and access to new customer bases in prudent fashion.

What's next for the ASX tech share?

Livetiles hasn't given guidance for financial year 2022.

However, it did reiterate that it's focusing on cost management strategies and work towards breaking even and looking for more investment opportunities to further its growth.

The company expects the second half to bring strong revenue growth as employers look to improve workplaces post-pandemic.

LiveTiles share price snapshot

The last 2 sessions' gains haven't been enough to boost the LiveTiles share price into the year-to-date green.

The ASX tech share is still trading 12% lower than it was at the start of 2022. It has also fallen 64% since this time last year.

The post This ASX tech share withstood Thursday's selloff to leap 11%. Here's why appeared first on The Motley Fool Australia.

While shares have retraced to 12.5 cents, up 4.2%, earlier they were as high as 13 cents apiece. Although the move is in the positive direction, the LiveTiles share price is still 59% below its 52-week high.

LiveTiles share price rallies on record cash receipts

• Cash receipts growth of 22% year on year to a record $14.6 million
• Annual recurring revenue (ARR) increased 13% to $64.5 million
• Average ARR per customer up 23% year on year to $62,900
• Net operating cash outflow of $1.1 million, representing an improvement of 58% on previous quarter
• Trailing 12 months of cash receipts grew by 22% year on year to $54.4 million
• Finished the quarter with a cash position of $20.9 million

What happened during the first quarter?

Giving the LiveTiles share price something to be green about, the company demonstrated further growth during the first quarter of FY22.

Given that the company is in the loss-making stage of its life, top-line growth is particularly important. Thankfully, LiveTiles followed through with an extra 13% boost to its ARR in Q1, taking it to $64.5 million.

Likewise, cash receipts (which is the revenue recognised during the quarter) increased 21% to $14.6 million. This was likely a product of larger revenues per customer, as well as more customers being signed to its digital solutions.

Speaking of which, a number of notable additions to its customer list were made during the quarter. This included a United States investment manager, a United Kingdom city council, a global chocolatier based in Europe, and a German aeronautics manufacturer, to name a few.

In terms of operations, the company rolled out a major project with a Catholic school. This entailed 10,000 users across the network using LiveTiles intranet. In addition, LiveTiles Reach (a communication app) was successfully deployed to a large Australian Hospitality business.

The increase in revenue from customers also floated to the bottom line. While LiveTiles posted a net operating outflow, it was reduced from $2.5 million in Q1 FY21 to $1.1 million. This could be acting as another positive catalyst for the LiveTiles share price today.

What did management have to say?

Commenting on the record quarter, LiveTiles co-founder and CEO Karl Redenbach said:

Having focussed on a disciplined approach to the implementation of our strategic review, it is pleasing to see a continued improvement in both underlying and top-line growth. Our ARR continues to grow every quarter and has now risen to $64.5m, up +13% to the pcp.

Our ongoing focus on disciplined cash management is continuing with a 56% improvement in operating cashflows in the quarter when compared to Sep-20; and supported by a record-equalling cash receipts quarter of $14.6m

Looking forward, the company is focused on implementing recommendations from its recent review. Meanwhile, in terms of finances — management says it's in a good position — with a focus on cash generation being front of mind.

Finally, there are more than 500 qualified leads for the company to pursue after a recent event. The "Let's Connect" event, with noteworthy author Simon Sinek, attracted over 4,300 attendees.

The LiveTiles share price is down 54% in the last 12 months.

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Let's investigate further.

LiveTiles share price on watch after strong revenue and EBITDA growth

• Total revenue growth of 5% year on year to $46.7 million.
• Operating revenue increased by 19% to $45 million
• Underlying EBITDA grew by $11.4 million, or 91%, to a loss of $1.1 million
• Total contracted licenses growth of 48% year on year to 2.3 million
• Mobile licences up 1,211% over the year prior
• Cash receipts expanded by 26% to $51.8 million, with net operating outflows improving by 71%

What happened in FY21 for LiveTiles?

In a potential positive for the LiveTiles share price, the company grew total revenue and operating revenue by 5% and 19% respectively year on year.

LiveTiles explained this comes from growth "across both new and existing customers via upsell and product loss sells". Its software subscription business also saw 19% growth and software sales revenue was also up 20% on the year prior.

As such, gross profit climbed 16% to around $33 million in FY21 although the company's gross margin decreased by 16 basis points to 73%. LiveTiles said this was due to "platform maintenance resources and higher licensing costs", alongside increasing its customer support.

Underlying EBITDA saw an $11.4 million improvement and grew 91% year over year. This was coupled with operating expenditure of $41 million that was a saving of 22% or $11.4 million on FY22.

Consequently, the company's net profit after tax (NPAT) also improved by about $1.5 million to a statutory loss of $30.1 million.

LiveTiles also recorded its highest ever cash receipts of $51.8 million which is 26% higher year on year. The company explained the result means cash receipts have grown at a compound annual growth rate (CAGR) of 96% over the last 3 years.

Finally, the company left the year with $16.8 million in cash on its balance sheet, which it says is sufficient "to manage ongoing operations with growing cash receipts and disciplined cost management".

What did management say?

LiveTiles Co-Founder and CEO Karl Redenbach said:

We are pleased with LiveTiles FY21 results in a year that was not without its challenges; operationally, and on a global scale due to the ongoing uncertainty with COVID-19. Despite this, we have continued to make significant improvements across the business during the year, growing our contracted licence base +48% to 2.3m, delivering 19% growth in operating revenues to $45m, reducing our operating expenditures and have now put the company
on a path to profitability with Underlying EBITDA at $(1.1)m, a 91% improvement from 2020.

Regarding LiveTiles' strategic review, Redenbach added:

During FY21, the Company commissioned an independent Strategic Review, which was presented to the Board in Q4, and we are pleased to be able to share the review findings; as well as the new Company Strategy, the LiveTiles "Premiership Plan". A detailed outline of the review and the strategic plan is provided in the Director's Report of the Appendix 4E 2021 Financial Statement.

What's next for LiveTiles?

Due to uncertainties surrounding the COVID-19 pandemic, LiveTiles opted against providing guidance for FY22.

The company did "reiterate its continued focus on disciplined cost management strategies" amid other measures.

These measures include "reshaping the go-to-market model" whilst reviewing the company's product portfolio.

In addition, LiveTiles also expects "strong medium to long-term growth potential" which, it states, is driven by "increased remote working and the employee experience solutions" post-pandemic.

At the time of writing, the LiveTiles shares are trading at 15 cents, down 11.76%. The LiveTiles share price has faced challenges this year to date, posting a loss of 29% since January 1. This extends the previous 12 months' slip of 26%.

Both of these results are well behind the S&P/ASX 200 index (ASX: XJO)'s return of about 25% over the past year.

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Since the beginning of July, LiveTiles shares have rallied almost 14% to $0.165, at the close of trade on Friday. But while the jump in share price will be welcome news for shareholders, it comes amid a disappointing period for the company. Even after the recent surge, LiveTiles shares are down over 30% so far this year. This is uncomfortably close to the 52-week low of $0.145.

Let's take a look at the reasons behind LiveTiles' disappointing share price performance – and see whether this recent jump might be the first sign of a turnaround.

LiveTiles background

But first, a little background information on the company.

Originally founded by two Australian tech entrepreneurs, LiveTiles has grown into a global software company headquartered in New York. It specialises in building engaging, interactive intranet portals for its business clients.

But this is no simple drag and drop intranet template. LiveTiles uses machine learning and artificial intelligence technology to enhance the user experience and create collaborative online workplace solutions. LiveTiles' software uses data analytics to deliver insights that can be used to boost staff engagement.

Its workplace software has already won it some powerful friends. For example, it is a premier technology partner of multinational technology juggernaut Microsoft Corporation (NASDAQ: MSFT). This means that LiveTiles' core software is capable of being deployed with Teams, Microsoft's communication and collaboration platform. The two companies have also been involved in co-selling activities in at least 39 countries.

So why has LiveTiles been underperforming recently?

In some ways, LiveTiles underwhelming share price performance is a bit of a mystery. If you believe the news out of the company, it's growing faster than ever.

In a letter to shareholders, released last year in response to the escalating COVID-19 pandemic, the company proudly spruiked the fact that the Australian Financial Review had named it Australia's fastest-growing technology company.

And in its most recent financial presentation, for the quarter ended 31 March 2021, LiveTiles reported that, since the March quarter 2017, annualised recurring revenues had increased by over 500% (from just $8.5 million to $52.8 million). And yet, its share price now is lower than it was all the way back then.

Recent news

The reason behind the recent rally was likely the company's announcement that it had inked a new deal with multinational food conglomerate Nestle. The deal is the largest yet for LiveTiles' Europe, Middle East and Africa (EMEA) segment. The contract is for three years and should net LiveTiles at least $2.1 million in revenue.

Under the deal, LiveTiles will deliver a cloud-based employee experience platform. In the project's initial phase, the platform will be rolled out to 125,000 users. But the goal will be to eventually have the platform used by Nestle's global workforce of more than 300,000 employees.

LiveTiles financials and outlook

The Nestle deal continues a strong period for LiveTiles. The third quarter also included another record signing – a $3 million three-year deal with American healthcare and insurance company UnitedHealth Group Inc (NYSE: UNH).

While the company's third quarter investor presentation didn't include firm earnings guidance numbers for the remainder of FY21, it did hint that underlying business momentum remained strong. The company's sales pipeline increased by 139% in the third quarter, and the company is continuing to focus on growth opportunities while keeping costs down.

Commenting on the company's third-quarter results, LiveTiles co-founder and CEO Karl Redenbach said that he had, "confidence in the Employee Experience evolution, the breadth of this addressable and emerging market and the positioning of the LiveTiles strategy for success."

The post The LiveTiles (ASX:LVT) share price is up 14% this month appeared first on The Motley Fool Australia.

At the time of writing, LiveTiles shares are up an astonishing 20% to 18 cents.

What's the deal?

Investors are fighting to get a hold of LiveTiles shares following the company's significant contract win.

According to its release, LiveTiles revealed that it has signed another large enterprise licencing deal with international company, Nestlé.

Headquartered in Switzerland, Nestlé is the world's leading nutrition, health and wellness company. The business has a market capitalisation of roughly US$333 billion and employs over 328,000 people worldwide.

Under the agreement, LiveTiles will deliver a range of products and services encompassing its employee experience solution. Around 125,000 users will adopt the initial phase. If successful, a second phase will take place where 300,000 people will participate in the program.

Most notably, the contract is a record signing for LiveTiles EMEA. The project integrated and rolled out services last month, and is scheduled to go live on 1 November 2021.

The contract is valid for a period of 3 years and will generate a minimum revenue of $2.1 million for LiveTiles.

LiveTiles co-founder and CEO, Karl Redenbach commented:

We're proud to be working with Nestlé and delivering an all-encompassing Employee Experience Platform solution to one of the world's biggest employers. To have a quality brand such as Nestlé signing with LiveTiles shows us that Employee Experience is now top of mind for the biggest employers in the world, particularly in a post-pandemic environment.

LiveTiles share price summary

While the LiveTiles share price is accelerating today, when comparing against the last 12 months, its shares are heavily down. The LiveTiles share price is sitting close to a 30% loss from this time last year, and 26% down year-to-date.

Based on valuation grounds, LiveTiles presides a market capitalisation of roughly $161 million, with about 912 million shares outstanding.

The post Why the LiveTiles (ASX:LVT) share price is rocketing 20% today appeared first on The Motley Fool Australia.

In fact, a few ASX shares have actually just hit 52-week lows or worse. Here's why these ASX shares are down in the dumps:

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price hit a 52-week low of 15.5 cents on Tuesday. Investors have been selling this employee experience software provider's shares due to its disappointing performance in FY 2021. During the third quarter, the company reported annualised recurring revenue (ARR) of $58.9 million on a reported basis. This was up just 1.4% since the end of December. In addition to this, LiveTiles noted that its customer numbers stood at 1,114, which was down by 18 customers since the end of December. Given its stuttering growth, investors may be concerned that its cash burn will continue and yet another capital raising will be required in the near future.

Perenti Global Ltd (ASX: PRN)

The Perenti share price fell to a 52-week low of 53.5 cents yesterday. Investors have been selling the mining services company's shares after a severe downturn in its performance. Last month the company advised that it won't be hitting its guidance in FY 2021 due to COVID-19 headwinds and Australian labour market shortages. It also warned that these headwinds are likely to persist for the next 12 to 18 months.

Splitit Ltd (ASX: SPT)

The Splitit share price dropped to a 52-week low of 57 cents on Tuesday. The buy now pay later (BNPL) provider's shares are now down by 55% since the start of the year. Investors may believe Splitit is going to get left behind by its larger rivals, particularly given increasing competition. Furthermore, the fact that Splitit runs its BNPL business via credit cards, which other BNPL platforms are supporting the demise of, doesn't appear to bode well for the future.

The post These ASX shares just sank to 52-week lows appeared first on The Motley Fool Australia.

In early trade, the employee experience software provider's shares are down 12.5% to a multi-year low of 17.5 cents.

This latest decline means the LiveTiles share price is now down 44% from its 52-week high or ~75% from its record high.

Why is the LiveTiles share price crashing lower?

Investors have been heading to the exits today following the release of LiveTiles' third quarter update.

According to the release, at the end of the third quarter, LiveTiles' annualised recurring revenue (ARR) reached $58.9 million on a reported basis. This was up 7% on the prior corresponding period and just 1.4% since the end of December.

Management blamed much of this weakness on currency headwinds, noting that its growth would have been much stronger had the Australian dollar not strengthened.

However, also weighing on its performance and the LiveTiles share price, was a net reduction in customers.

At the end of March, customer numbers stood at 1,114. This is down by 18 customers since the end of December.

Cash burn continues

Also putting pressure on the LiveTiles share price has been its cash burn and cash receipts.

Although the company reported a 12% year on year increase in cash receipts to $12.2 million, they were down 6% on the prior quarter.

This led to the company recording a net cash outflow from operating activities of $2.3 million, which reduced its cash balance to $16.75 million.

Management commentary

While the market may have reacted negatively to the update, one person that was happy with it was LiveTiles' Co-Founder and Chief Executive Officer, Karl Redenbach.

He said: "We are very pleased again with our overall Q3 results, in what continues to be a challenging operating macro environment across the globe, achieving continued growth in our ARR results, reducing our net cash outflows and maintaining a healthy cash position."

"We're confident LiveTiles products will continue to gain traction and our growth will continue to accelerate with it," he added.

The post Why the LiveTiles (ASX:LVT) share price is crashing 12% lower appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:

Adairs Ltd (ASX: ADH)

The Adairs share price is down 8% to $3.50. A good portion of this decline is attributable to the homewares retailer's shares trading ex-dividend this morning for its fully franked interim dividend of 13 cents per share. This dividend will be paid to eligible shareholders in a couple of weeks on 25 March.

Afterpay Ltd (ASX: APT)

The Afterpay share price has sunk 7.5% to $102.80. Investors have been selling Afterpay and other tech shares on Tuesday following another poor night of trade on the tech-heavy Nasdaq index. This has been driven by concerns over rising bond yields. The declines have been so heavy that the S&P/ASX All Technology Index (ASX: XTX) is down a sizeable 2.8% at the time of writing.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price crashed 10% lower to $4.32 before being hurriedly placed into a trading halt. No details have been provided for the halt as of yet, but it could be related to its exposure to the Greensill collapse. Reports in the Financial Times claim that John Hempton raised concerns to APRA about the level of insurance extended to Greensill by IAG.

Livetiles Ltd (ASX: LVT)

The Livetiles share price has fallen over 4% to 22.5 cents. This appears to have been driven by weakness in the tech sector and a broker note out of Citi this morning. Although the broker has a neutral rating and 28 cents price target on its shares, it has warned that another capital raising is likely to be required in the near future due to its cash burn.

The post Why Adairs, Afterpay, IAG, & Livetiles shares are sinking appeared first on The Motley Fool Australia.

In morning trade the intranet and workplace technology software provider's shares are up over 4% to 25 cents.

How did LiveTiles perform in the first half?

For the six months ended 31 December, LiveTiles reported a 10% increase in annualised recurring revenue (ARR) to $58.1 million. On a constant currency basis, its ARR grew 23% over the prior corresponding period.

Also heading in the right direction was its operating expenses. Excluding non-recurring items, LiveTiles' operating expenses reduced by 27% to $23 million.

And while the company is still making a loss, it is narrowing. For the six months, LiveTiles recorded an operating loss of $2.3 million. This compares to an operating loss of $14 million a year earlier.

It was a similar story on the bottom line, with LiveTiles' loss after tax improving to $6.5 million from $15.9 million a year earlier. This improvement is being driven by strategic cost initiatives and continued revenue growth.

At the end of the period, LiveTiles had a cash balance of $19.4 million.

Management commentary

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, appeared pleased with the company's performance during the half.

He commented: "LiveTiles is pleased to have added to its record base of annualised recurring revenue and cash receipts, and been able to reinvest into its marketing initiatives and direct sales strategy after a period of cost discipline. Importantly we have achieved all of this with a remarkable 84% improvement in our Adjusted EBTIDA for the half compared to the same period last year."

"LiveTiles is adding new products and features, strengthening longstanding partnerships, striking new ones, finding integration efficiencies and enhancing our brand awareness in enterprise space."

And while no guidance has been given, Mr Redenbach notes that the company has started the second half positively.

 "We've started the calendar year with great momentum with our recent record customer win, which will help LiveTiles elevate itself as a clear leader in the Employee Experience industry and continue to win more Enterprise business," he concluded.

The post Here's why the LiveTiles (ASX:LVT) share price is charging higher today appeared first on The Motley Fool Australia.

Four ASX shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

CSL Limited (ASX: CSL)

The CSL share price is down over 2.5% to $281.65. This appears to be due to a mixed response to its half year results yesterday. While analysts at Goldman Sachs were impressed with its stellar profit growth in the first half, they were surprised that this didn't lead to an upgrade to its full year guidance. This has the broker concerned and led to it downgrading CSL's shares to a neutral rating with a $305.00 price target.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has fallen a further 5% to 25.7 cents. Investors have been selling this software company's shares since it released further details of a record new contract win. The market appears to have been left underwhelmed that that the "record multi-million dollar deal" was worth $3 million over three years. And while it could increase in value over time, there's no guarantee that this will be the case.

OceanaGold Corp (ASX: OGC)

The OceanaGold share price has crashed 8.5% lower to $2.01. This follows the release of its full year results after the market close on Thursday. Production issues led to the gold miner reporting a 23.2% decline in revenue to US$500.1 million and a 40% reduction in EBITDA to US$129.6 million. And due to higher depreciation and amortisation, OceanaGold posted a loss after tax of US$74.3 million.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 4% to $24.35 despite announcing a sale and purchase agreement with RWE Supply & Trading. The agreement is for the supply of LNG from Woodside's global portfolio for a term of seven years commencing in 2025. In other news, this morning UBS held firm with its neutral rating and cut the price target on its shares slightly to $26.05. This follows its full year results release this week.

The post Why CSL, LiveTiles, OceanaGold, & Woodside shares are tumbling lower appeared first on The Motley Fool Australia.

At one stage the intranet and workplace technology software provider's shares were down as much as 11% to 26 cents.

The LiveTiles share price has since recovered some of this decline but currently trades 6% lower at 27.5 cents.

Why is the LiveTiles share price under pressure?

This morning the LiveTiles share price returned from its trading halt after it released an update which provides more colour on yesterday's new contract announcement.

On Wednesday, LiveTiles revealed that it had secured a "record multi-million dollar deal with one of the largest healthcare companies in the US."

However, no details were provided in respect to how many millions the contract was worth or who the contract was with. This appears to have caught the eye of the ASX Ltd (ASX: ASX), which prompted today's update.

What was today's update?

This morning LiveTiles stated: "Pursuant to ASX Listing Rule 3.1, LiveTiles confirms the customer is United Healthcare Group."

According to the ASX, listing rule 3.1 states that "an entity must disclose all information concerning it that it becomes aware of from any source and of any character, if a reasonable person would expect the information to have a material effect on the price or value of its securities."

In light of this, the company revealed what record multi-million dollar deal means to it.

It advised that the contract is for an initial and minimum term of three years, with a minimum contract value of A$3.0 million.

It does, however, have the potential to grow up to A$12.2 million over the life of the contract. This is based on the customer's possible employee headcount growth over the next five years and the inclusion of additional products and services that may be required as the project evolves.

Management advised that there are no material conditions that need to be satisfied, nor is there other material information relevant to assessing the impact of the commercial agreement on the price or value of the company's shares.

Judging by the LiveTiles share price today, some investors may have believed the contract was going to be even larger based on its first announcement.

The post Why the LiveTiles (ASX:LVT) share price is tumbling 11% lower today appeared first on The Motley Fool Australia.

What's driving the LiveTiles share price higher?

The LiveTiles share price is one of the best performers today after reporting a significant contract win.

According to its release, LiveTiles entered a three-year multi-million agreement with a United States-based Fortune 100 healthcare company. The deal, effective immediately, will see LiveTiles deliver its broad suite of products including its mobile communications application, LiveTiles Reach.

The company credited this to its established products, compared to custom-built platforms. This is because it is readily available to assist in employee collaboration and communication.

LiveTiles revealed that the contract was closed much quicker than the average sales cycle for enterprise deals. A catalyst for this could be that the healthcare system is overwhelmed by COVID-19. Particularly in terms of patient volume, risk management, and work-from-home for non-essential staff.

This is the second major win in recent months for the company. Previously, LiveTiles secured a record licensing deal with a United States-based apparel retailer. The multi-year, multi-million contract was signed to support the high-profile global apparel retailer with its COVID-19 re-opening strategy.

Growth market

Since the beginning of 2021, LiveTiles has witnessed strong tailwinds as a result of the digital transition from Senior Executives. It noted that companies are buying software packages to enhance their employee experience platforms. In turn, it is hoped that this will drive business growth. Notably, it is estimated that the market for solutions that promote corporate culture, knowledge discovery, and on-the-job learning is around US$300 billion per annum.

In the announcement, Gartner, a leading technology researcher, stated that global healthcare IT spending is forecasted to recover this year. By 2024, the sector alone is projected to reach US$169.5 billion.

Furthermore, enterprise software is anticipated to lead the rebound in IT spending in 2021. An annual growth is predicted at 8.8% to US$505 billion.

What did management say?

LiveTiles Co-founder and CEO Karl Redenbach welcomed the milestone contract, saying:

To sign another record deal for the second time in less than four months is a real thrill. To do so with LiveTiles Reach being a key part of the deal, is further validation of our product diversification strategy and gives us confidence for the year ahead. It's also further validation of the growing Employee Experience Platform product category that LiveTiles has helped pioneer.

LiveTiles president Daniel Diefendorf went on to add:

Digital Transformation and employee experience in a post COVID-19 world is no longer a nice to have. Large enterprises are making the necessary investments to help their teams be more effective, but also connect in meaningful ways with their employees no matter where they work from. This win brings together the best of a forward-looking customer and the LiveTiles' Employee Experience Platform to serve hundreds of thousands of employees.

Despite today's meteoric rise, the LiveTiles share price is down 14% over the last 12 months.

Based on the current share price, the company commands a market capitalisation of around $261 million.

The post Why the LiveTiles (ASX:LVT) share price is rocketing 20% today appeared first on The Motley Fool Australia.

Fours ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

Cann Group Ltd (ASX: CAN)

The Cann share price is down 3% to 64 cents after revealing that it has been the victim of a cyber security incident. According to the release, the cannabis company has recently made payments of approximately $3.6 million to an overseas contractor. These payments were in relation to works being undertaken for Cann's Mildura facility. However, those payments have been received by an unknown third party as a result of a complex and sophisticated cyber fraud.

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price is down almost 5% to 20 cents. This morning the cannabis company announced that it has brought the marketing and sales function of its cannaQIX product inhouse, taking over from its commercial partner Doetsch Grether in Switzerland. This follows a growing trend of direct inbound sales enquiries and interest in cannaQIX product.

LiveTiles Ltd (ASX: LVT)

The LiveTiles shares price is down 5.5% to 25 cents. Investors may be taking a bit of profit off the table after the software company's shares jumped notably higher on Friday. That gain was driven by speculation it could be a takeover target. Though, LiveTiles has rebuffed this speculation, revealing that it isn't in discussions.

News Corp CDI (ASX: NWS)

The News Corp share price has fallen 3.5% to $27.39. This also appears to be due to profit taking after a very strong gain last week. In fact, thanks largely to a very strong second quarter update, the media giant's shares were among the best performers on the ASX 200 last week with a 16.9% gain.

The post Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today appeared first on The Motley Fool Australia.

In afternoon trade the intranet and workplace technology software company's shares are up 17% to 24 cents.

Why is the LiveTiles share price storming higher?

As we covered here earlier today, LiveTiles requested a trading halt this morning amid media reports that private equity firms were interested in launching a takeover approach.

The report claims that the low multiples its shares trade on relative to its peers have caught the eye of international investors.

This afternoon the company confirmed that it receives unsolicited approaches by parties interested in exploring a corporate transaction from time to time.

However, it advised that it is not currently in formal discussions in relation to a control transaction with any third party and will inform shareholders as required under its continuous disclosure obligations.

It also confirmed that it has engaged Credit Suisse and Gilbert & Tobin to advise the company on any potential control transaction should one happen.

Why is the LiveTiles share price underperforming?

There appear to be a number of reasons for the weakness in the LiveTiles share price. One of those is the company's growth, which has failed to live up to expectations.

In February 2019, LiveTiles stated its aim of organically growing its ARR from $30.9 million to at least $100 million by 30 June 2021.

A year later, the company had dropped the word "organically" but advised that it "continues to pursue its short-term target of $100m in ARR and sees significant market and growth potential beyond this level."

However, this target has now disappeared without any commentary on the matter. At the end of the second quarter, LiveTiles' ARR stood at $64.7 million, which is well short of its June 2021 target of $100 million with just a few months left to go.

Another concern has been the company's cash burn. During the second quarter, LiveTiles posted a net cash outflow of ~$13.6 million, leaving it with just $19.2 million in the bank.

And while $9.8 million of this related to one-off legal and litigation fees, investors appear concerned that LiveTiles will require some form of capital injection in the near future. This may be weighing on investor sentiment somewhat.

The post Why the LiveTiles (ASX:LVT) share price is surging 17% higher today appeared first on The Motley Fool Australia.

What did LiveTiles announce?

Earlier today LiveTiles released an announcement informing investors that securities in the company have been placed in a trading halt.

According to the company's announcement, LiveTiles requested an immediate trading halt. This request was in response to an article published in The Australian Financial Review overnight.

LiveTiles informed investors that shares in the company will remain in a trading halt until the commencement of trading on the 5^th of February 2021 or following the release of another announcement from the company.

What prompted LiveTiles to enter a trading halt?

Securities in LiveTiles were placed in a trading halt in response to an article published in The Australian Financial Review.

The article, which was published overnight, speculated a potential buyout of LiveTiles by offshore private equity funds. According to the article, LiveTiles has engaged Credit Suisse's investment bankers as defence advisers, after receiving approaches from specialist software buyout funds.

Despite the interest, the article acknowledged that no formal process was underway, with LiveTiles reportedly exploring options.

According to the article, LiveTiles has received attention from private equity funds given the company's struggling share price. In the past 12 months, the LiveTiles share price has fallen more than 16% to around 20 cents. Meanwhile, the ASX all-tech Index is up 40% for the period.

How has the LiveTiles share price performed?

LiveTiles is a global software company that allows users to create intelligent workplace experiences. The company's cloud-based software management systems allow clients to use popular online software tools like Microsoft 365, Google Drive, communications through Slack and use Expensify for financial reporting.

Late last month LiveTiles released a positive update for the second quarter. The release was highlighted by a 10.2% increase in annualised recurring revenue (ARR) of $58.1 million. The software company generated $64.7 million in ARR at December 31 from more than 1100 customers and reported $19.2 million cash on hand.

At the time of writing, shares in LiveTiles are still in a trading halt after closing yesterday's trading session at 20.5 cents per share.

The post LiveTiles (ASX:LVT) shares placed in trading halt appeared first on The Motley Fool Australia.

Four ASX shares that have not let that hold them back today are listed below. Here's why they are storming higher:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price has climbed 4% to $1.11 following the release of its second quarter update. Bigtincan continued its strong form during the quarter and delivered annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% over the prior corresponding period. Management revealed that this comprised organic ARR of $40 million (up 42.9%) and ARR of $8.4 million from recently completed acquisitions.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 7.5% to 65 cents after reporting an improvement in its performance during the second quarter. For the three months ended 31 December, Bubs reported gross revenue to $12.8 million. While this was a 12% reduction on the prior corresponding period, it was up 36% on its first quarter gross revenue. Bubs also revealed improvements in the corporate daigou channel during the quarter.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has jumped 5% to 22 cents following the release of its second quarter update. According to the release, as of the end of December, LiveTiles' ARR had increased 10.2% year on year to $58.1 million. In constant currency, LiveTiles' ARR would have grown 23% year on year to $64.7 million. This was driven by customer additions and an increase in average ARR per customer.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 5% to $9.74 despite there being no news out of the wine company. However, a sharp pullback in the Australian dollar may have given its shares a boost. A weaker currency could give its wine exports a lift.

The post Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher appeared first on The Motley Fool Australia.