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12:58
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Originally posted by alpha100:
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Geez, I'm going beautifully - managed to paste the Citi research from this time last year. What a difference a year makes! The latest is below:Waiting for operational momentum to improve Change in disclosure drives ARR beat — LiveTiles’ ARR declined -$1.4 million qoqto $53.8 million, with the stronger AUD having a $4.4 million impact. While 4Q ARRwas better than our forecasts of $52.8 million, this was driven by a change indisclosure, with LiveTiles reclassifying certain support revenue as ARR in 4Q20.While the net growth in customers was positive, this implies that like for like, constantcurrency ARR growth was weaker than expected. New product architecture and sales pipeline commentary encouraging — While4Q growth was negatively impacted by Enterprise customers delaying decisionmaking, LiveTiles’ commentary on the pipeline was encouraging, with managementpointing to strong demand for its employee mobile communications/pocket intranetoffering (CYCL’s Condense). Further, LiveTiles has refreshed its product portfolio andcombined its core LiveTiles’ products with Wizdom and CYCL’s offerings into fourmain products/solutions. While we expect trading conditions to improve as economiesopen up, we remain cautious on the near term outlook with IT budgets under pressureand forecast ARR grows +$2 million to $55.8 million in 1Q21e. Better 4Q in terms of cashflow, but are the cost cuts sustainable? — Underlyingoperating cash flow of $1.2 million in 4Q was stronger than expected, driven bystronger cost control (as well as a stronger A$). While June is typically a strongerquarter for cash collection, cash receipts was also stronger. However, we forecast acash outflow of -$2 million in 1Q21e as we expect opex to increase going forwardwhich reflects employee hours and salaries returning to 100% at the end of 4Q aswell as increased spend on marketing to launch the refreshed product portfolio. Maintain Neutral/High Risk — LiveTiles trades on an undemanding EV/FY21eRev multiple of 3x and a permanent increase in work from home could accelerateadoption of LiveTiles’ digital workplace solutions over the medium term. However,we maintain our Neutral/High Risk rating given near-term risks to bookings andpotential for increased churn as government stimulus is eased/removed. New targetprice is $0.30. which reflects medium term earnings upgrade driven by lower costs.
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I reckon it’s worth noting this too:
(20min delay)