Global software developer LiveTiles (ASX: LVT) has published stellar quarterly numbers after announcing a record quarter of annualised recurring revenue (ARR) growth.
Longer term, LiveTiles says it’s aiming to be in a position to haul in over $100 million in ARR by the end of 2021.
In a statement to the market, LiveTiles said its ARR reached $40.1 million at the end of Q2 2019 representing year-on-year growth of 167% – up 10 times compared to two years ago.
More specifically, LiveTiles said that over the past three months, the company had achieved a “record quarter” with revenues growing to the tune of $5.6 million, around 65% higher compared to the same period last year.
Impressive Q2 figures didn’t include last year’s acquisition of Hyperfish, a recognised leader in next-generation employee profile and directory management software which LiveTiles secured in May last year.
Taking the Hyperfish acquisition in isolation, LiveTiles said its new addition exceeded its earn-out targets with recurring revenue growth of 425% since takeover.
Over the past three months, some of LiveTiles’ new customers included a global consumer lifestyle company in the US, major universities in the UK and Australia, as well as a financial institution in New Zealand.
From a cash flow perspective, LiveTiles delivered record customer cash receipts over the past three months and reported that net operating cash flow continued to improve during the period.
Additionally, LiveTiles received $1.4 million in funding from New York State in relation to its Rochester operations.
Having reported strong figures, LiveTiles expects to maintain its performance over the new financial year.
The software company said it expects to deliver another year of strong customer and revenue growth driven by continued investment in its products, partners and sales and marketing channels.
“Our key company objective is to deliver ARR of at least $100 million 30 June 2021 – and we are well positioned to achieve this,” the company said.
Product ramp up
In addition to its strong company metrics and new customers, LiveTiles has also launched an artificial intelligence-enabled intelligent search platform with strategic partner Search365, an outfit that’s partnered with Microsoft on the global launch of “home sites” in tandem with global pharmaceutical company Novartis.
Not stopping there, LiveTiles said it has also delivered an AI-enabled Office 365 security solution in conjunction with alliance partner Nucleus Cyber.
In terms of its own activities, LiveTiles has recently launched LiveSmiles, an intelligent corporate wellness product, with Microsoft Australia already confirmed as a foundation customer.
LiveSmiles is a customisable “out-of-the-box” wellness solution that incorporates LiveTiles’ other products as part of a broader suite of products aimed at improving internal operations for both large and small companies.
The product was created specifically to address LiveTiles’ commitment to driving social impact and wellness within the workplace.
Research conducted by the Global Wellness Institute found that the wellness industry is one of the fastest emerging markets in the developed world, worth a total of $4.2 trillion and growing at a rate of 12.8% from 2015-17 – almost twice the rate of the global economic growth.
LiveSmiles incorporates key features including an AI-powered bot assistant, data analytics and insights, as well as real-time recommendations to managers on how to improve engagement and understanding of wellness of employees.
Available on a freemium model, the solution opens up LiveTiles to growth opportunities across enterprise customers.
Launched with the support of Deloitte Australia, the wellness solution was unveiled last month by LiveTiles co-founder Peter Nguyen-Brown and expert speakers in health and wellbeing, including AFL Hall-of-Fame inductee Paul Salmon and founder of The Burnout Project Dr Amy Imms.