BTH
Bigtincan Holdings Limited
ASX
Q3 FY24 Business Update
Sentiment:
Business Update
10 April 2024 7:50 PM
Bigtincan reports record Q3 FY24 EBITDA of $4.2 million and free cash flow of $4.8 million, driven by business adjustments and AI technology investments.
Better than expected
The company achieved record Q3 FY24 results for EBITDA, EBITDA margin, and Free Cash Flow, indicating better than expected financial performance.
Summary
- Bigtincan achieved record Q3 FY24 results for EBITDA, EBITDA margin, and Free Cash Flow.
- Q3 EBITDA was $4.2 million, representing a 14% EBITDA margin based on revenue of $30 million.
- Q3 Free Cash Flow was $4.8 million.
- FY24 EBITDA to date is $6.1 million, on track to achieve the FY24 outlook of $10 million+.
- Adjusted EBITDA was $5.7 million for Q3 FY24, resulting in Adjusted EBITDA YTD of $11.4 million, also on track for FY24 guidance of Adjusted EBITDA of $15 million+.
- Bigtincan ended Q3 FY24 with $21.6 million in cash and cash equivalents, up from $19.4 million as at December 2023.
- Over $3 million in AI impacted contracts were added during Q3.
- The company has over 120 opportunities in the pipeline for the use of GenieAI family offerings.
- More than 50 customers with contracts in excess of $100K were renewed during the quarter.
- Bigtincan closed more than 20 new logos in Q3 FY24.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record financial results, successful AI initiatives, and strong customer engagement. The reaffirmation of FY24 guidance further reinforces the positive sentiment.
Positives
- Record Q3 FY24 EBITDA and Free Cash Flow results indicate improved financial performance.
- The company is on track to meet its FY24 EBITDA guidance.
- AI investments are yielding positive results, with significant AI impacted contracts added.
- Strong customer renewals and new customer acquisitions demonstrate continued market traction.
- Bigtincan's cost base adjustments and AI prioritization are expected to build future growth opportunities.
- Bigtincan has been chosen as the winner of The Software Report Top Executives in Artificial Intelligence Award, and the Top Companies in Sales Enablement awards for 2024.
Risks
- The document mentions challenging circumstances, suggesting potential headwinds in the business environment.
- The board renewal program is progressing, indicating potential uncertainty during the transition.
Future Outlook
Bigtincan reaffirms its FY24 guidance for Free Cash Flow for 2H FY24 of $5m+ and is on track to achieve FY24 EBITDA outlook of $10m+.
Management Comments
- The results demonstrate the benefits of the refocused business strategy adopted by the Board in 1H FY24.
- The impact of new technology created by Bigtincan's technology team and the AI investments made in calendar years 2022 and 2023 are benefiting customers as they continue to implement a multi-hub strategy.
- Bigtincan expects to make further investments in AI and see new customer revenue from AI based technologies.
Industry Context
The announcement highlights Bigtincan's focus on AI-powered sales enablement, aligning with the broader industry trend of leveraging AI to improve productivity and revenue generation. The reference to McKinsey research underscores the growing recognition of AI's impact on business outcomes.
Comparison to Industry Standards
- The document references McKinsey research indicating that 63% of executives reported revenue increases from AI adoption, suggesting Bigtincan's AI initiatives are aligned with industry benchmarks for AI impact.
- Bigtincan's focus on AI-powered sales enablement solutions positions it alongside companies like Seismic, Highspot, and Showpad, which are also investing heavily in AI to enhance their platforms.
Stakeholder Impact
- Shareholders: Positive financial results and reaffirmed guidance are likely to be viewed favorably.
- Employees: Successful AI initiatives and company growth can boost morale and create opportunities.
- Customers: New AI-powered capabilities and improved solutions can enhance customer experience and value.
- Suppliers: Continued business growth and financial stability can strengthen supplier relationships.
- Creditors: Strong financial performance and cash flow improve creditworthiness.
Next Steps
- Continue to execute on the refocused business strategy.
- Further investments in AI technology development.
- Progress the Board renewal program and update the market in Q4 FY24.
Key Dates
- September 2023: Bigtincan received funding that enabled the delivery of GenieAI family of solutions in Q3.
- December 2023: Cash and cash equivalents were $19.4m.
- 31 March 2024: End of Q3 FY24; YTD EBITDA reached $6.1 million.
- 11 April 2024: Date of the business update announcement.
- 28 February 2024: Company's 1H FY24 results announced, including FY24 guidance.
- End FY24: Expected changes to the Board as part of the renewal program.
Keywords
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.