The Bigtincan Holdings Ltd (ASX: BTH) share price rose by 16.3% after announcing an exciting update to the market.
Bigtincan is a software business that was founded in 2011 in Sydney, but it now has offices in Boston, London, Israel, Tokyo, Los Angeles, Singapore and Glasgow. The company describes itself as a leading provider of Sales Enablement Automation software that is used by hundreds of global organizations including Australia and New Zealand Banking Group (ASX: ANZ), AT&T and Merck. The idea of the software is to increase win rates and customer satisfaction.
Why the Bigtincan share price is going nuts
The software company provided an update regarding its 2019 financial year revenue guidance.
When the company delivered its halt year result to December 2018 the business guided that it was on track to achieve revenue growth of 35% to 40% for the June 2019 year.
However, the company now expects revenue growth of more than 40% for FY19, which is a pleasing sign that revenue growth is accelerating.
Bigtincan Co-Founder and CEO David Keane said:
“Today’s update reflects continued strength in Bigtincan’s business from new lighthouse customer wins and expansion in revenue from existing customers as users see increasing value in the use of the Bigtincan Sales Enablement platform.”
Bigtincan also announced that it was launching the first sales enablement platform for Adobe at the 2019 Adobe Summit.
Mr Keane said that there was an opportunity to help marketers extend their existing marketing investments while providing high-value channels to deliver information to sales and other customer-facing teams.
Is Bigtincan a buy on this news?
The company is clearly gaining traction with its customers and it’s clearly exciting investors. I’m unsure if it’s a buy today but it has impressively increased its annual recurring revenue every half year for several years with an improving retention rate and a rapidly rising gross profit margin.
However, the below growth shares could be even better ideas to buy today.
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