Bigtincan reverses two-day slide with $1m US contract
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Bigtincan Holdings (ASX:BTH) led a quiet morning in ASX tech news with a new deal announcement.
The Software-as-a-Service (SaaS) company has inked a new contract with John Hancock, a Boston-based life insurance company.
BTH said it will generate at least $1m in revenue from the deal over a three-year term.
Shares in BTH rose more than five per cent in morning trade, partially reversing a two-day slide of 20 per cent following the release of the company’s 4C filing on Friday.
Since the March selloff in June, BTH has been one of a number of B2B tech companies to book impressive gains in the post-Covid rally.
After bottoming out below 40c, shares in the company climbed to new all-time highs of almost $1.50 before last week’s fall.
The company’s core product is an automated platform that leverages AI to help sales representatives engage better with their customers.
Commenting on its latest deal, Bigtincan said John Hancock sales reps will utilise its financial services cloud solution to engage with potential customers in a more educated and informed manner.
BTH said the sales announcement adheres with its B2B strategy to deploy its core service with the potential to expand into additional product offerings.
In the company’s 4C filing for September, it flagged cash receipts from customers of $4.52m, which was in line with forecasts.
Quarterly staff costs of more than $9m resulted in net operating cash outflows of $6.53m. Operating payments for the quarter totalled $11.5m, down seven per cent form the previous quarter.
Following a $35m share placement to institutional investors in May, the company finished the quarter with around $63m in the bank.
More broadly, the company said it continued to see tailwinds from the broader digital transformation taking shape in customer business practices in the wake of the pandemic.