Bigtincan Holdings Limited (ASX:BTH) Q1 FY23 Quarterly Report Commentary

Bigtincan Holdings Limited (ASX:BTH) (OTCMKTS:BGTHF), owner of Bigtincan and Brainshark, and Australia's largest publicly listed sales enablement platform and Software-as-a-Service (SaaS) provider of global sales training, sales content delivery and sales meeting facilitation, has today released its Appendix 4C and Quarterly activities report and is pleased to present commentary to accompany the lodgement of this report for the quarter ending 30 September 2022 ("Quarter", "Reporting Period").

Q1 FY23 Cash Flow

Bigtincan achieved its highest ever customer cash receipts for the Quarter of $37.7m, an increase of 156% from Q1 FY22 cash receipts of $14.7m, including $6.0m in multiyear payments as customers continued to extend average contract lengths. During the Quarter, the movement of the USD against the AUD increased cash receipts in AUD by $2.0m on a constant currency basis vs Q4 FY22.

Quarterly cash operating payments were $37.5m for the Quarter, inclusive of costs related to one off severance and other related costs of $2.8m. This increase in payments was impacted by the movement in USD against the AUD with an increase in AUD payments of $2.2m on a constant currency basis vs Q4 FY22. Fees paid to Directors in the Reporting Period were $195k.

Net operating cash flow for Q1 FY23 was $0.3m, and with one off business adjustments costs backed out underlying net cash from operating activities would have been $3.1m.

Investments into long-term product development were $3.5m for the Quarter, a 25% decrease compared with Q4 FY22, as Bigtincan completed work on identified projects whilst continuing to invest in longer term projects that impact future revenue.

The Company held total cash and cash equivalents of $35.3m as at 30 September 2022, and remains on track to be cash flow breakeven in FY23.

Operating Cash Flow

Bigtincan achieved its fourth consecutive Quarter of positive net operating cash flow in Q1, and its fifth in the last six, with net operating cash of $0.3m - excluding the $2.8m in costs related to one off severances, underlying net cash from operating activities would have been $3.1m.

Anniversary of the completion of the Brainshark Acquisition

During the Quarter, Bigtincan passed the 12-month anniversary of the completion of the Brainshark acquisition. During this period Bigtincan successfully:

- Completed product integration with new user experiences, unified user access, and connected data platform.

- Integrated teams, systems and infrastructure.

- Incorporated the Brainshark brand into the group globally.

- Contributed to marginal ARR of multi-Hub deals hitting 31% (as per Bigtincan's FY22 results presentation available on the ASX or at https://investor.bigtincan.com). During the Quarter, Brainshark business was 48% of total deals by number which included cross sell and upsell of Learning Hub to existing Bigtincan Content Hub customers.

- Improved Brainshark MRR retention rate to levels historically achieved by Bigtincan.

- Generated NPAT of $3.6m for FY22 from the Brainshark operations and improved gross margin in line with Bigtincan historical rates.

- Achieved $3.9m in cost synergies for FY22.

Growing User Adoption

Based on the work done by the team in 2H FY22, Bigtincan is pleased to update investors of the impact of investments into the Brainshark platform that take advantage of Bigtincan's focus on user success.

As of October 2022, impacts from these investments included;

- User Sessions time across the Learning Hub increased 34% compared to pre acquisition.

- My Enrollments system usage increased by 97%.

- Increased usage of key functions like Search (increased 650%) and filters (increased 90%) demonstrated the benefits of integration with Bigtincan systems.

Market Development and Company Recognition

During the Reporting Period, Gartner released their annual Market Guide where Bigtincan was recognised as having all the capabilities recommended by Gartner for a successful deployment.

In July, Bigtincan was recognised as a Leader in the Software Reviews Sales Enablement Emotional Footprint study. A copy of this report is also available on Bigtincan's website.

Bigtincan was also awarded the 2022 Sammy Award for Product of the Year during the Quarter, and was the only sales enablement platform in the category.

This ongoing recognition of the market position of Bigtincan is confirmation of the ability of the business to compete and win in the global market.

Product and Technology Update

Bigtincan continued its track record of quarterly releases with over 56 capabilities and enhancements released across the 3 core Hubs. Key highlights include:

Content Hub

- Hub Share Rooms available for all users

- New APIs available for file management

Learning Hub

- Deeper integration of Brainshark and content Hub

- Expanded UI updates in the new modernised Brainshark experience including content UI views in Brainshark

- Additional accessibility features for the Brainshark player as Bigtincan delivers a solution that helps all humans to be their best.

Engagement Hub

- Platform updates to enable enhanced 3rd party integrations

- Ongoing updates across the modernized UI

- Launch of new controls for meeting hosts

New Customer Wins and Expansion

During the Quarter, Bigtincan continued its track record of new customer wins and expansions across key vertical markets and geographic areas, with the Company announcing a $3.3m contract extension with a global financial services company based on the Brainshark technology - showing the benefits of the complete Bigtincan platform.

Other deals and expansions in the Reporting Period included;

New wins in Q1 included: HSA Insurance, Assurant, XPO Logistics, eBay

Expansion deals closed in Q1 included: Cisco, Convatech, Anaplan, Cigna, Farmers, Fidelity, Seagate, Google and Allurion.

FY23 Outlook

Bigtincan remains on track to achieve the following guidance for FY23:

- ARR in the range of $137m to $143m

- Revenue in the range of $123m-128m

- Cash flow breakeven to be achieved in FY23

- Positive adjusted EBITDA forecast to materially exceed FY22.

LiveTiles

Bigtincan submitted a non-binding conditional indicative proposal to acquire all of the shares in LiveTiles Limited ("LiveTiles") on 3 October 2022. To date, Bigtincan has received very limited engagement from the Board of LiveTiles, beyond acknowledgement of our proposal.

Whilst the Board of Bigtincan believes the combination of the LiveTiles business with Bigtincan is a compelling opportunity for shareholders, without genuine engagement from LiveTiles and the opportunity to undertake due diligence, Bigtincan is unlikely to be in a position to make a formal proposal, but reserves the right to do so.

To view the Quarterly Report Presentation, please visit:
https://www.abnnewswire.net/lnk/H3L73UN8



About Bigtincan Holdings Limited

Bigtincan Holdings Limited (ASX:BTH) (OTCMKTS:BTGHF) is helping the world's leading brands facilitate the buying experience of the future. Everything we offer is designed to be smart, flexible, and easily adapted to unique business processes with highly personalised experiences that people and brands love. We're on a mission to help companies deliver branded buying experiences that are engaging, personalised, provide value and guide people to the best decisions with confidence. Innovative companies like Nike, Guess, Prudential, and Starwood Hotels trust Bigtincan to enable customer-facing teams to intelligently prepare, engage, measure and continually improve the buying experience for their customers. For more information about Bigtincan, visit: www.bigtincan.com or follow @bigtincan on Twitter.

     

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