Why the Bigtincan (ASX:BTH) share price is jumping higher today

The Bigtincan Holdings Ltd (ASX: BTH) share price is jumping higher today.

In morning trade, the artificial intelligence-powered sales enablement automation platform provider’s shares are up 4.5% to $1.12.

Why is the Bigtincan share price jumping higher?

Investors have been buying Bigtincan shares this morning following the release of its second quarter update.

According to the release, Bigtincan continued its strong form in the second quarter and delivered annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% over the prior corresponding period.

Management advised that this comprised organic ARR of $40 million (up 42.9%) and ARR of $8.4 million from recently completed acquisitions. However, the latter reduces to $6.8 million on a sustainable basis, comprising $6.8 million (US$5.2 million) from ClearSlide and $1.6 million from Agnitio.

A key driver of its organic growth was the success of the company’s “Land and Expand” strategy. It notes that 21% of Bigtincan’s total active customer base expanded their use of its platform during the first half of FY 2021. This compares to 16% during the same period last year.

Quarterly customer cash receipts came in at $10.5 million, which was an increase of 32% over the prior corresponding period (excluding multi year payments). And quarterly cash operating payments were up 17% on the prior corresponding period but steady quarter on quarter at $11.6 million.

This left the company with total cash and cash equivalents of $33.4 million at the end of December. Though, since then the company has received the proceeds from its capital raising, giving it a pro forma cash balance of $65 million.

Bigtincan CEO and Co-Founder, David Keane, commented: “Strong organic growth and overall 50% ARR growth over the previous corresponding period demonstrates the ongoing demand for Bigtincan’s technology during the pandemic.”

“Our customers continue to see Sales Enablement technology as critical to connect their customer facing teams together in the absence of face to face meetings, and as a way to empower their teams to be ready to deal with a smarter and more informed buyer. The recent strategic acquisitions, new technology partnerships and a growing global team provide a strong foundation for the company to continue to meet this growth in customer demand,” he added.

Outlook

Potentially boosting the Bigtincan share price today will be management’s outlook update.

It advised that it expects its ARR to be at the top end of FY 2021 ARR guidance range of $49 million to $53 million. This guidance assumes a stable exchange rate and stable customer retention.

More reading

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• Why the Bigtincan (ASX:BTH) share price is edging higher today
• These ASX shares are growing at a rapid rate in FY 2021
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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. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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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