- Workplace technology company LiveTiles (LVT) is trading slightly lower today despite some positive financial figures for its quarterly update
- The company is touting a cashflow-positive six months and an increase in quarterly annualised recurring revenue (ARR), but these are underpinned by some technicalities
- ARR is only up on the June quarter on a constant currency basis using exchange rates from the end of March
- Similarly, the past six months are only cashflow-positive when not counting non-recurring costs from the September 2020 quarter
- Still, the company says it is pleased with its quarterly numbers particularly in light of COVID-19 headwinds
- Shares in LiveTiles are down almost 4 per cent this afternoon and worth 25 cents each
LiveTiles (LVT) is once again trading slightly lower today despite some largely positive financial figures for the September quarter of 2020.
Compared to the September quarter in 2019, LiveTiles grew annualised recurring revenue (ARR) by 33 per cent to $57.1 million this year.
The result is underpinned by cash receipts of around $12 million for the quarter and the addition of 24 new LiveTiles customers.
However, ARR was marginally lower than the June 2020 quarter when not considered on a constant currency basis. June quarter ARR was $58.2 million. Nevertheless, LiveTiles said on a constant currency basis using exchange rates from March 31, September quarter ARR was technically $61.7 million — an increase of roughly 6 per cent on June.
Further, LiveTiles went cashflow-negative over the September quarter by just under $2.5 million. Yet, when taking away non-recurring costs, cash outflows are technically reduced to $800,000, taking the company cashflow-positive for the six months leading up to the end of September.
Still, the company’s cash position fell slightly from $37.8 million in the bank at the end of June to $34.6 million in the bank at the end of September.
LiveTiles Co-Founder and CEO Karl Redenbach said the company is pleased with the quarterly results particularly in light of ongoing headwinds from the COVID-19 pandemic.
“Our annualised ARR has risen to $61.7 million on a constant currency basis, which is up 44 per cent since last year and 227 per cent in two years,” Karl said.
“Our sales pipeline continues to show accelerated growth from both direct and partner sales channels as companies around the world look to implement COVID-19 re-opening strategies by embracing digital workplace solutions,” he said.
He specifically touted a major deal with a U.S. apparel retailer signed over the quarter as one of the company’s major recent achievements.
LiveTiles said it has no plans to raise capital any time soon.
Despite the company’s confidence in its annual report, shares are trading slightly lower this afternoon. Whether this is a reflection of a slipping wider tech sector or an investors response to the technicalities of the quarterly report is not certain.
Either way, shares in LVT are down 3.85 per cent and worth 25 cents each at 1:07 pm AEDT.