Global software company LiveTiles (ASX: LVT) has posted another strong quarter on the earnings front, with annualised recurring revenue skyrocketing 208% year-on-year.
The company, which aims to empower its users to create their own intelligent workplace experiences, achieved $34.5 million in revenue for the end of March 2019, up from $11.2 million a year prior.
The company was able to realise significant organic growth of $3.6 million over the thee-month period despite it typically being a less active quarter for Microsoft-aligned enterprise software sales.
During the March quarter, the company completed the acquisition of Wizdom, a Microsoft-aligned, digital workplace software business in Europe.
The fit between the two companies means that LiveTiles can capitalise on developing tools for Microsoft’s digital workplace software range and leverage its market position to court the growing demand for next-generation applications that are set to revolutionise modern business.
At the time, LiveTiles said the acquisition was expected to add 35% to its annualised recurring revenue to generate a combined tally of almost $31 million.
Some of its customer highlights throughout the March quarter included a global investment manager, a large life insurance company, a cable television network and a major consumer products manufacturer.
Further revenue growth forecast
With the company having more than tripled annualised recurring revenue over the past 12 months, LiveTiles indicated there will be further revenue growth on the horizon.
“We expect to deliver another year of strong revenue growth in FY19, driven by our investments in sales and marketing, the 2018 launch of our AI products, high-impact co-marketing initiatives with Microsoft plus a strong organic growth contribution from Wizdom,” LiveTiles co-founder and chief executive officer Karl Redenbach said.
“Our key company objective is to deliver annualised recurring revenue of at least $100 million by 30 June 2021 – and we are confident that we are well positioned to achieve this.”
Earlier the month, LiveTiles was selected as the first intelligent workplace software provider by the Australian Federal Government’s Digital Transformation Agency (DTA) Panel.
The DTA panel is a new category of suppliers who can be accessed by government buyers to fast-track procurement of digital products and services – officially titled the “Software Licensing and Services (SLS) Panel.
The company plans to leverage its DTA Panel status to accelerate new and existing opportunities to drive an enhanced pipeline of federal government work.
Shares in LiveTiles increased 3.5% to $0.58 in afternoon trade.