The LiveTiles Ltd (ASX: LVT) share price is crashing lower on Thursday morning.
In early trade, the employee experience software provider’s shares are down 12.5% to a multi-year low of 17.5 cents.
This latest decline means the LiveTiles share price is now down 44% from its 52-week high or ~75% from its record high.
Why is the LiveTiles share price crashing lower?
Investors have been heading to the exits today following the release of LiveTiles’ third quarter update.
According to the release, at the end of the third quarter, LiveTiles’ annualised recurring revenue (ARR) reached $58.9 million on a reported basis. This was up 7% on the prior corresponding period and just 1.4% since the end of December.
Management blamed much of this weakness on currency headwinds, noting that its growth would have been much stronger had the Australian dollar not strengthened.
However, also weighing on its performance and the LiveTiles share price, was a net reduction in customers.
At the end of March, customer numbers stood at 1,114. This is down by 18 customers since the end of December.
Cash burn continues
Also putting pressure on the LiveTiles share price has been its cash burn and cash receipts.
Although the company reported a 12% year on year increase in cash receipts to $12.2 million, they were down 6% on the prior quarter.
This led to the company recording a net cash outflow from operating activities of $2.3 million, which reduced its cash balance to $16.75 million.
Management commentary
While the market may have reacted negatively to the update, one person that was happy with it was LiveTiles’ Co-Founder and Chief Executive Officer, Karl Redenbach.
He said: ”We are very pleased again with our overall Q3 results, in what continues to be a challenging operating macro environment across the globe, achieving continued growth in our ARR results, reducing our net cash outflows and maintaining a healthy cash position.”
“We’re confident LiveTiles products will continue to gain traction and our growth will continue to accelerate with it,” he added.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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