Disclosure: I currently hold and am also a customer of the company.
Overview
Bigtincan Holdings Limited is an Australia-based company, which provides enterprise mobility software. The Company provides software solutions as a service (SaaS) to customers accessing the software as needed. Its application suite comprises Bigtincan Hub and Bigtincan Forms. Bigtincan Hub is an integrated single-platform for sales and service organizations.
Bigtincan Hub is powered by a machine learning and artificial intelligence (AI) system. It works on IPhone operating system (iOS), Android, Windows, and Blackberry, as well as Windows desktop, Mac desktop and Apple WatchOS. Bigtincan Forms enables organizations to reduce or in some cases eliminate manual paper-based forms, automate data capture and implement process improvements without requiring an infrastructure platform or stand-alone forms application. It operates in United States of America (USA), Europe, the Middle East and Africa (EMEA) and Asia Pacific/Japan.
Big Tin Can started in Sydney in 2011 and has won numerous awards and is recognised by analyst firms as a leader in its market.Bigtincan has secured global brands as customers such as GUESS clothing, AT&T, Merck and Palo Alto Networks. Bigtincan Hub software is localised in 17 languages and the Company has customers over 35 countries.
Notes
• Bigtincan’s top 10 customers combined represent approximately 54% of CY16 pro forma revenue
• Bigtincan has over 20 Channel Partners globally as of Q2 2017 including major telco's like AT&T/Verizon and Optus in AU. They also have a strong partnership with Apple and sales opportunities with Apple hardware.
• Licence cost per seat is approx $35 per month
---------------------
Financials
• FY 2017 MRR increased 53% to 907k, met IPO forecast. Profit for the year was negative $6m a 24% decrease from PY.
• FY 2017 still hold $11M in cash with a cash burn rate of 363k pm which is 13% lower than PY.
• As of FY17 - BTH has no debt.
---------------------
Strategy
• HOLD - Long term, BTH is very close to going cash positive ($6m gap) represents a 6% sales growth required to break even. Given prior year growth was over 50% and newly signed Verizon contract will open up significant new opportunities, the potential for BTH to start making profits over $10m in 2018 is very likely. Current market cap is $71m. Expect SP to hit minimum 50c in 2018, stockpile below 40c if possible.
---------------------
Risk Profile
• Main competitors include SAVO, Brainshark and KnowledgeTree.
• Infrastructure disruption, unplanned outages. Entire solution is cloud based.
• Data Security Breach
• Failure to retain existing customers and attract new customers
---------------------
Highlights:
December, 2017
• Death of co-founder, Geoff Cohen
• Reseller agreement with Verizon, minimum 3 years contract.
November, 2017
• Acquisition of Israel based business "Contondo"
Contondo is used to measure the ROI on sales tools, and more importantly improve it: The Contondo platform clearly shows marketers what sales-tools they should develop now in order to have the largest impact on revenue, plus it allows marketing to demonstrate sales-tools’ value. It utilizes data science to analyze pipeline, sales-tools and content usage.
October, 2017
• Released new platform version
August, 2017
• Wins contract with a $50b NASDAQ listed US Telecommunications company, securing deployment of BTC to over23,000 iPads over 3 years.
• BTH selected as the winner of the Salesforce.com DemoJam at the Salesforce.com Dreamforce conference in New York City against global competition
• BTH selected as winner of SIIA’s CODiE Awards July 2017 in a highly competitive field
• Expansion of the channel network with new partner signings in Europe
• Expanded partnership with Cisco and Apple through embedded FastLane technology inside Bigtincan Hub.
April, 2017
• Floated for $12m at IPO of 0.26c per share (total 46,154m shares)
(20min delay)