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Why the LiveTiles share price is one to watch today

Kenneth Hall

The LiveTiles Ltd (ASX: LVT) share price will be one to watch on the ASX this morning ahead of the company’s annual general meeting (AGM).

Why is the LiveTiles share price on watch?

The Aussie software company has had a busy FY 2019 as the company continues to expand.

LiveTiles announced last Wednesday that it would be acquiring Swiss intranet provider, CYCL. The Swiss company has 2 software products, Condense and MatchPoint, with 10 active reseller partners.

CYCL currently serves 156 high-quality customers and generates total revenue of $14.1 million. Its annualised recurring revenue (ARR) currently stands at $4.7 million.

LiveTiles also noted the close alignment with Microsoft and very high customer retention as key points of the acquisition.

The Aussie software group’s addressable market remains large with 300,000 potential customers, according to today’s AGM presentation.

With an average ARR of $43,600 per customer, LiveTiles is estimating each 1% of market penetration is worth $130 million in ARR.

The LiveTiles share price will be one to watch when the market opens up for trade this morning following the presentation.

LiveTiles saw strong growth in Microsoft Office365 Commercial revenue, which climbed 34% higher on the prior corresponding period (pcp).

The Aussie software group is more than 4 times larger than its nearest competitor on a global scale on a revenue basis.

The company’s ARR growth for FY 2019 came in at 167% total and 114% organic. The inorganic growth came from LiveTiles’ acquisition of Wizdom, a leading European ‘plug and play’ business in February 2019.

This strong FY19 result continued the company’s strong growth trajectory. A higher proportion of new enterprise customers and product cross-selling also boosted average ARR per customer.

On the cash flow front, LiveTiles recorded strong growth in customer cash receipts across all 4 quarters in FY19. Net operating cash flow also improved throughout the year in a boost for the LiveTiles share price.

The post Why the LiveTiles share price is one to watch today appeared first on Motley Fool Australia.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended LIVETILES FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019