BTH
Bigtincan Holdings Limited
ASX
Half Year FY24 Results Announcement
Sentiment:
Half Year Results
24 February 2025 6:06 PM
Bigtincan Holdings Limited reports a 49% increase in EBITDA to $2.8m for 1H FY25, driven by cost restructuring, and anticipates full-year EBITDA exceeding $10m.
Worse than expected
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.
Summary
- Bigtincan Holdings Limited announced its 1H FY25 results, showcasing an operating revenue and other income of $51.2m.
- The company's EBITDA for 1H FY25 reached $2.8m, which increases to $5.6m when adjusted for one-time irregular items.
- Bigtincan anticipates a full-year FY25 EBITDA of over $10m.
- The company expanded its customer base with over 50 new logos and 200+ expansions within existing accounts.
- Bigtincan received the 2024 Aragon Research Innovation Award for Sales AI.
- The company is progressing with the Vector Scheme of Arrangement, with the scheme meeting expected in early April 2025.
- 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.
- Bigtincan Directors unanimously recommend that Bigtincan shareholders and Bigtincan option holders vote in favour of the Vector SoA Proposal in the absence of a superior proposal and subject to the independent expert concluding in the independent experts report (and continuing to conclude) that the Vector SoA Proposal is in the best interests of Bigtincan shareholders and Bigtincan option holders.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While there's positive EBITDA growth and customer expansion, the significant net loss due to goodwill impairment tempers the overall outlook. The Vector SoA adds uncertainty.
Positives
- EBITDA increased by 49% to $2.8m compared to $1.9m in the prior corresponding period.
- Operating expenses decreased from $60.5m to $52m for the six months to 31 December 2024.
- The company is experiencing customer growth with 50+ new logos and 200+ expansions.
- Bigtincan is being recognized in the market, including the Aragon Research Innovation Award for Sales AI.
- The company is actively integrating AI features across its platform.
Negatives
- The net loss after tax for the six months ended 31 December 2024 was $64m, which included a $54m goodwill impairment related to the proposed Vector transaction.
- Adjusted EBITDA was $5.6m compared to $5.7m for 1H FY24.
Risks
- The proposed Vector transaction is subject to shareholder approval and an independent expert's assessment.
- The goodwill impairment of $54m significantly impacted the net loss after tax.
- The Vector SoA Proposal is subject to the independent expert concluding in the independent experts report (and continuing to conclude) that the Vector SoA Proposal is in the best interests of Bigtincan shareholders and Bigtincan option holders.
Future Outlook
Bigtincan expects to achieve a full-year FY25 EBITDA of over $10m.
Management Comments
- Bigtincan Directors unanimously recommend that Bigtincan shareholders and Bigtincan option holders vote in favour of the Vector SoA Proposal in the absence of a superior proposal and subject to the independent expert concluding in the independent experts report (and continuing to conclude) that the Vector SoA Proposal is in the best interests of Bigtincan shareholders and Bigtincan option holders.
Industry Context
Bigtincan operates in the competitive sales enablement software market, where AI integration is becoming increasingly important; the Aragon Research Innovation Award for Sales AI highlights Bigtincan's position in this evolving landscape.
Comparison to Industry Standards
- Without specific competitor data, it's difficult to provide a precise comparison; however, companies like Seismic, Highspot, and Showpad are key players in the sales enablement space.
- Bigtincan's focus on AI aligns with industry trends, as many sales enablement platforms are incorporating AI to enhance their offerings.
- The projected full-year EBITDA of $10m+ suggests a moderate scale compared to larger, more established players in the market.
Stakeholder Impact
- Shareholders: The proposed Vector SoA and the board's recommendation to vote in favor will significantly impact shareholders.
- Employees: The ongoing cost restructure efforts may have implications for employees.
- Customers: Continued investment in AI technologies aims to enhance the platform and benefit customers.
- Creditors: The financial performance and the proposed Vector transaction could affect creditors.
Next Steps
- Dispatch the scheme booklet and Independent Experts Report to shareholders.
- Hold the scheme meeting in early April 2025.
- Continue delivering AI features across the Bigtincan platform.
Key Dates
- November 2024: Akash Agarwal joined Bigtincan's Board of Directors at the AGM.
- 31 December 2024: End of the half year for which results are reported.
- 25 February 2025: 1H FY25 Results Announcement
- Early April 2025: Expected date for the scheme meeting regarding the Vector Scheme of Arrangement.
Keywords
Bigtincan, EBITDA, Sales AI, Vector Scheme of Arrangement, Financial Results, AI, Sales Enablement
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.