Livetiles Limited (ASX: LVT) has released its quarterly result to the market today. It was previously announced that annualized recurring revenue (ARR) reached $55.2m as at 31 March.
The business has confirmed that it still aims to be cash flow positive at some point in this calendar year. Cash receipts were up 109% on the prior corresponding period. However, this could be contributed to the fact that last year the business was at a much smaller base. After a record cash receipts in the first quarter, this quarter only grew from $10.4m (31 December) to $10.9m (this quarter).
The highlight of the announcement is in the cost line. Operating expenses of $19.4m were above guidance of $18.6m. However, on a constant currency basis, these costs would be below guidance. LVT further emphases that cash burn will rapidly improve in coming quarters as a result of cost reduction initiatives and ongoing growth.
Investors reacted favourably to the strong result, with the share price rallying over 12% at market open.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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