Cloud-based intelligent workplace software company LiveTiles (ASX: LVT) has posted an annualised recurring revenue of $52.7 million for the December 2019 quarter, representing a year-on-year growth of 130%.
The growth – up 7.6 times on figures from 2017 – was driven by the $48 million acquisition of European digital workplace software company Wizdom in February and the $32.2 million purchase of Swiss intelligent intranet software provider CYCL AG in November.
LiveTiles co-founder and chief executive officer Karl Redenbach said the company had already “delivered early progress” to introduce its products to CYCL customers, including the conversion of some CYCL services customers to software subscriptions.
“This acquisition has consolidated our position as the global market leader in intranet software, targeting a potential total market of $13 billion in its very early stages of adoption,” he said.
“With market penetration of 1% to date, we see enormous opportunity to drive intranet software adoption and extend the value of the intranet.”
Increased software subscriptions and a growing demand for related products such as software support also benefited LiveTiles’ December results.
“[Our] customer base continued to grow during the quarter and [we are] now well positioned to grow our pipeline of partners,” the company reported.
“[We] continue to focus on bundled and integrated offerings to enterprise customers, which [traditionally] have a longer sales cycle but higher than average contract values and retention rates.”
New customers in the three months to December 2019 included Australian mining companies and government departments, a US travel agency, a global confectionery company in Luxembourg and a large European insurance company.
Also completed during the quarter was a $55 million capital raising, the proceeds of which will be used to continue driving customer and revenue growth as LiveTiles targets $100 million in annualised recurring revenue by 30 June 2021.
At midday, shares in LiveTiles were trading 10.19% higher at $0.292.