Workplace software technology firm LiveTiles (ASX:LVT) has passed a major milestone, becoming cash flow positive for the first time in the April-June quarter, generating $2m in June alone.
The positive cashflow result has been achieved in a tough operating environment amid the COVID-19 pandemic and the general economic slowdown, and the cloud-based services company has kept a tight grip on its expenses.
“It’s a major milestone for us. We have done a great job in changing our cashflow trajectory to spending less rather than spending more in the last quarter,” chief executive Karl Redenbach told Stockhead.
LiveTiles has been laser-focused on growth, and recently consolidated and simplified its product range on its website.
“We are one of the fastest growing software services companies in the world with 288 per cent growth in the past two years,” he said.
LiveTiles’ annualised recurring revenue hitting $58.2m in FY20, up from $15m in FY18.
LiveTiles with its digital workplace platforms and collaboration-based software products seems well positioned to ride the rapid shift in employees to working from home.
“We believe employee collaboration will be more relevant than ever in a working-from-home environment,” Redenbach said.
LiveTiles provides digital software, such as the intranet or homepages of customer companies, and its software enables employees to connect and collaborate online.
Up with the likes of Atlassian, Microsoft
The company was listed among 12 software firms identified by technology research firm Forrester as leaders in their field of intranet technology that included Atlassian and Microsoft.
“The fact we were mentioned in the same report [as Atlassian and Microsoft] is incredible and a great achievement. It really highlights the leaders in the marketplace,” Redenbach said.
“We look up to Atlassian as the gold standard of what a software firm should do.”
LiveTiles has its head office in New York, and this is seen as a competitive advantage for the company.
This location gives the company key access to its customers, best practices and talented workers, Redenbach said.
Pepsi, Nike on the client list
LiveTiles is continually talking to its key innovation partners such as Sydney-based graphic design company Canva, which LiveTiles recently struck a partnership deal with.
“Even though we are a young company, only four or five years old, we have been able to develop deep partner relationships and leveraged those to build over 1,000 customers in a short period of time, including some of the biggest names on earth like Pepsi, Nike and the US Marines,” he said.
Customer numbers for LiveTiles touched 1,092 at the end of June, and average revenue per customer was $53,317.
In the recent quarter, LiveTiles added new customers including a professional sports team in the US, insurance provider in Denmark, government agency in Australia and a US shipping operator.
Intranet, AI product focus
LiveTiles supplies four key products to its customers – Intranet, Reach, Everywhere and Quantum, an artificial intelligence software – centred around facilitating collaboration and communication in the workplace.
Reach software is a communication platform for organisations that may not have an email address for all employees, for example retail businesses.
LiveTiles says it has been important in the COVID-19 pandemic as it has enabled customers to communicate important information quickly to their staff in a rapidly evolving environment.
The post Work-from-home boom turns LiveTiles cash flow positive appeared first on Stockhead.
Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.