LiveTiles share price slumps 31% as quarterly cash bleed worsens

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The LiveTiles Ltd (ASX: LVT) share price is trading down today following the release of its quarterly activities report for the three months ending 30 June 2022.

At the time of writing, the share is trading more than 31% lower at 5.8 cents apiece.

LiveTiles share price dives on Q4 results

Key takeouts from the period include:

  • FY22 operating revenues (unaudited) of $52.8 million, up 17% on FY21
  • Contracted license user base of 2.77 million at 30 June 2022, up 20% from 30 June 2021
  • Cash receipts of $12.9 million for the June quarter, delivering $56.7 million for FY22, a 10% year-on-year increase
  • Net operating cash flows were a loss of $2.3 million for the quarter
  • Cash position of $13.1 million at 30 June 2022
  • Additional $4 million available to draw from the OneVentures debt facility, providing total available cash of $17.1 million
  • $65.6 million ARR at 30 June 2022, up 4% year on year
  • Trailing twelve month (TTM) customer net annual recurring revenue (ARR) retention of 91% at 30 June 2022

What else happened for LiveTiles last quarter?

LiveTiles printed Q4 FY22 cash receipts of $12.9 million, a decline of 11% year on year. This was underscored by an approximate $1.7 million in lower-than-expected customer receipts due by 30 June.

The company says these “were delayed and not received in time,” and that 60% of the expected collections have since been received.

Operating revenues were $52.8 million for FY22, up 17% from FY21. The growth was driven by increasing software subscriptions.

Contracted user licenses reached 2.78 million at 30 June 2022. This was up 20% from the same time last year. LiveTiles Reach also continued to expand, up 79% over the 12-month period.

LiveTiles also secured a key customer upsell deal in Q4. This will comprise an initial $200,000 in software and $900,000 in services over three years, the company says.

The customer – an international law firm domiciled across the United States and Europe – has committed to the full employee experience (EX) offering.

Management commentary

Speaking on the results, LiveTiles co-founder and chief executive officer Karl Redenbach said:

The June quarter marks one of strong operational achievements with the completion of integration of The Human Link and the formal launch of our Employee Experience Academy. These milestones represent a great opportunity for us to further expand our global footprint and lay the foundations for continued commercial growth through expanded distribution of our proprietary products globally.

We remain confident LiveTiles is well positioned to consolidate its place as a leader in the Employee
Experience market and continue to deliver growth through the next 12 months.

LiveTiles share price snapshot

The LiveTiles share price has slipped 42% into the red this year to date, leading to a more than 62% loss over the past 12 months.

The post LiveTiles share price slumps 31% as quarterly cash bleed worsens appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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 Scott Phillips.

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