BTH
Bigtincan Holdings Limited
ASX
2024 AGM - Presentation & Chair's and CEO's Addresses
Sentiment:
Annual Report
28 November 2024 5:00 PM
Bigtincan Holdings Ltd. (ASX:BTH) reported FY24 EBITDA of $11.3 million (adjusted EBITDA $16.2 million), a significant turnaround from a loss in FY23, driven by strong core team and technology, and the launch of AI-powered features.
Better than expected
Bigtincan's FY24 EBITDA of $11.3 million significantly exceeded expectations given the previous year's loss and the challenging macroeconomic conditions.
Summary
- Bigtincan Holdings Ltd. (ASX:BTH) announced its FY24 results, showing a significant improvement in EBITDA.
- FY24 EBITDA was $11.3 million, a substantial increase from a loss of $4.9 million in FY23.
- Adjusted EBITDA, which includes adjustments for one-off items, reached $16.2 million.
- FY24 total operating revenue and other income was $117.1 million.
- Operating cash flow for FY24 was $6.2 million, with $5.4 million in free cash flow in the second half.
- The company has over 2,000 customer deployments globally.
- Bigtincan launched five new AI-powered features under the GenieAI umbrella, impacting over $10 million in ARR as of the AGM.
- The company's gross margin was 88%.
- Bigtincan's addressable market is estimated to be over $10 billion.
- The company is considering a scheme transaction with Investcorp and a competing proposal from Vector Capital.
Sentiment
Score: 7
Explanation: While the company faced challenges, the significant improvement in EBITDA and the launch of successful AI features demonstrate positive progress. The uncertainty surrounding the acquisition proposals slightly lowers the score.
Positives
- Significant turnaround in EBITDA from a loss in FY23 to $11.3 million in FY24.
- Strong adjusted EBITDA of $16.2 million.
- Positive operating cash flow of $6.2 million.
- Impressive free cash flow of $5.4 million in the second half of FY24.
- Over 2,000 customer deployments globally, showcasing strong market presence.
- Successful launch of five new AI-powered features under GenieAI, significantly impacting ARR.
- High gross margin of 88%.
Negatives
- Slight decline in revenue.
- Macroeconomic conditions impacting customers.
- Corporate distractions present risks for the business.
Risks
- Macroeconomic uncertainties impacting customers and revenue growth.
- Competitive pressures in the sales enablement market.
- Corporate distractions related to the Investcorp and Vector proposals could impact the business's ability to achieve its targets.
Future Outlook
Bigtincan targets an EBITDA of $14 million or more in FY25, representing over 20% growth. However, the ability to achieve this will be influenced by the need to address corporate distractions related to the competing acquisition offers.
Management Comments
- Whilst the macro economic conditions impacting our customers and our focus on EBITDA this year meant that Bigtincan did not have a growth year, with revenue declining slightly we have continued to solidify our position as a leader in the sales enablement market.
- Our commitment to lead the market and to help customers cope with a world impacted by AI technologies has been a cornerstone of our strategy this year, with our team creating cutting-edge AI-driven solutions that enhance customer engagement and streamline sales processes.
- For FY25 Our initial outlook for FY25 as provided at the full year results was for an improving free cash flow position and an EBITDA target of $14 million or more, representing a growth of over 20%. The ability for the business to achieve these outcomes will be influenced by the need for the business to address corporate distractions. Those distractions present real risks for the business in our competitive marketplace and will need to be carefully managed.
Industry Context
Bigtincan operates in the rapidly evolving sales enablement market, characterized by increasing demand for digital solutions and AI-driven technologies. The company's focus on AI integration positions it competitively within this landscape. The competing acquisition offers highlight the current interest in the sector.
Next Steps
- Bigtincan will continue to build on the results achieved in FY24.
- The company aims to improve its free cash flow position in FY25.
- Bigtincan will continue to expand its market presence, enhance its product suite, and drive operational efficiencies.
- The company will keep shareholders informed of any developments regarding the Investcorp and Vector proposals.
Key Dates
- 30 June 2024: End of Bigtincan's FY24 financial year.
- 21 October 2024: Date of scheme implementation deed and business combination agreement with Investcorp.
- 25 November 2024: Date of revised proposal from Vector Capital.
- 29 November 2024: Date of Bigtincan's Annual General Meeting (AGM).
- 2 December 2024: Deadline for Investcorp to make a counter proposal.
Keywords
Sales Enablement, AI, EBITDA, Bigtincan, FY24 Results, Software as a Service (SaaS), GenieAI, Investcorp, Vector Capital, ASX:BTH
BTH
Bigtincan Holdings Limited
ASX
Sector: Software & Services
Filings with Classifications
Worse than expected
24 February 2025 6:06 PM
Half Year Results
- The net loss after tax for the six months ended 31 December 2024 was $64m, including a goodwill impairment of $54m related to the proposed Vector transaction.
Better than expected
4 December 2024 5:59 PM
Acquisition Recommendation
- The Vector proposal is considered superior to the previous IAAC deal, resulting in a better outcome for Bigtincan shareholders.
Delay expected
2 December 2024 5:48 PM
Acquisition Update
- The lack of a counter-proposal from Investcorp will likely delay the completion of any transaction, requiring Bigtincan to consider alternative options.
Worse than expected
2 December 2024 5:48 PM
Acquisition Update
- The lack of a counter-proposal from Investcorp is worse than expected, as it indicates a potential failure to secure a deal on favorable terms and increases uncertainty regarding the future of the company.
Better than expected
28 November 2024 5:00 PM
Annual Report
- Bigtincan's FY24 EBITDA of $11.3 million significantly exceeded expectations given the previous year's loss and the challenging macroeconomic conditions.
Worse than expected
24 November 2024 6:19 PM
Acquisition Proposal
- The initial expectation was that the Investcorp deal would proceed, but the emergence of a superior offer from Vector Capital suggests that the initial deal was not the most favorable option for shareholders.
Capital raise
30 October 2024 2:02 AM
Notice of Annual General Meeting
- Resolution 9 seeks shareholder approval to increase the company's equity securities issuance capacity by 10%, potentially allowing for future capital raises to fund growth initiatives.
Capital raise
20 October 2024 6:32 PM
Merger Proposal
- Bigtincan Limited intends to raise up to US$25 million from institutional investors in a PIPE transaction.
- Bigtincan Limited intends to raise up to US$25 million in debt financing.
Capital raise
20 October 2024 6:27 PM
Merger Announcement
- Up to US$25 million (~A$37.3 million) will be raised from institutional investors in a PIPE transaction.
- Up to US$25 million in debt finance will be sought to support the transaction.
Capital raise
1 October 2024 7:51 PM
Business Combination Proposal
- Investcorp plans to invest US$12.5 million in Newco.
- An additional US$25 million in debt and equity funding is being sought from institutional investors to partially fund the cash election opportunity.
Worse than expected
19 June 2024 7:45 PM
Offer Rejection Announcement
- The company rejected the offer from Vector Capital Management, indicating that the offer was below what the company believes it is worth.
Capital raise
17 June 2024 10:33 PM
Capital Raising Announcement
- Bigtincan is undertaking a fully underwritten 1 for 3 accelerated pro-rata non-renounceable entitlement offer.
Capital raise
10 June 2024 7:55 PM
Equity Raising Presentation
- Bigtincan is raising $20.5m to fund investments in core AI technology, data infrastructure related to provisioning of GeneiAI technology, market awareness and development and working capital.
Capital raise
10 June 2024 7:55 PM
Corporate and Business Update
- Bigtincan is conducting a fully underwritten 1 for 3 accelerated pro rata non-renounceable entitlement offer at an offer price of $0.10 per share to raise A$20.5m.
- The proceeds of the Equity Raising will be used to fund investments in core AI technology, data infrastructure related to provisioning of GeneiAI technology, market awareness and development, working capital and transaction costs.
Capital raise
7 June 2024 3:35 AM
Trading Halt Request
- Bigtincan Holdings Limited is conducting an equity raising.
- The equity raising involves both institutional and retail components.
Better than expected
10 April 2024 7:50 PM
Business Update
- The company achieved record Q3 FY24 results for EBITDA, EBITDA margin, and Free Cash Flow, indicating better than expected financial performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.