Is Livetiles Ltd (ASX_ LVT) Probably a Good Investment Or Not?

Everything You Need to Know About Livetiles Ltd (ASX_ LVT)

Livetiles was formed in 2014 as a software company in Melbourne,  Australia. The company focuses on providing intranet and digital solutions to its clients, these solutions include cloud based solutions for public and private sectors.

In just six years of existence, the company has set up its offices in not only Australia but USA, UK and Europe as well. One year after being founded, the company became listed on the ASX through a reverse takeover. A reverse takeover is one where a private company does not have to go through the rigorous IPO process to become listed. Instead the private company can simply buy controlling stake in an already listed company.

Livetiles did this through its acquisition of Modun Resources limited, which is a coal company. The takeover was worth AUD 57 million. Following the reverse takeover, Livetiles ended up raising AUD 12 million through a round of public financing. In the next few years Livetiles acquired US based AI startup Hyperfish, Danish startup Wizdom and Swiss intranet provider Cycl. This shows that ever since its inception, the company has followed an aggressive growth policy.

Experience:

In six years the company has worked in the following industries

  • Public sector
  • Healthcare
  • Travel
  • Manufacturing
  • Hospitality
  • Transportation
  • Media
  • Entertainment
  • Sport
  • Education
  • Retail
  • Defence
  • Aerospace
  • Banking

This shows that the company has gained experience of working in diverse industries in a very short amount of time.

Products and Services

LiveTiles creates cloud based digital working solutions for businesses based on Office 364, Azure and Sharepoint.

LiveTiles Reach

Is Livetiles Ltd (ASX_ LVT) Probably a Good Investment Or Not?

Livetiles Reach is a connectivity app that allows businesses to increase the engagement and retention time for all employees. It is an internal communications application that allows employees to connect from anywhere, on any device. It can be integrated with MS Teams and Sharepoint, in addition to this multiple third party applications can also be integrated to allow for enhanced functionality.

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LiveTiles Vibe

Is Livetiles Ltd (ASX_ LVT) Probably a Good Investment Or Not?

LiveTiles Vibe is an innovative way to get a pulse check from the employees. Vibes uses interactive and engaging cards, instead of cumbersome survey forms to gauge the response and experience of team members. LiveTiles term it as “shorter than a survey, faster than a meeting.”

Vibe is free and easy to use. It is simply a matter of selecting a vibe from the gallery and sending it to the team for feedback.

LiveTiles Intranet

Is Livetiles Ltd (ASX_ LVT) Probably a Good Investment Or Not?

LiveTiles Intranet offers companies the ability to set up their own intranet. The intranet is offered in two different packages. The LiveTiles Intranet Hub is basically intranet in a box. It combines tools from the entire digital workplace and presents the aggregated content in a user friendly manner.

LiveTiles Enterprise is a large scale intranet solution for large organizations. It has got extended options that take care of intranet governance, employee communication in particular in multilingual organizations and integration of third party applications along with a host of other exciting features

Livetiles Quantum

Is Livetiles Ltd (ASX_ LVT) Probably a Good Investment Or Not?

LiveTiles Quantum is an AI based solution to allow business leaders access to insights about their business. Quantum uses data analytics to allow the business leaders access to information about their business that can aid them in taking business decisions  to increase productivity.

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LiveTiles Everywhere

LiveTiles has created a cloud based panel using MS teams called LiveTiles Everywhere. It is an enterprise intranet platform that can be integrated with other business tools, while working with MS Teams and Sharepoint.

Use Cases

Some of the most prominent use cases of LiveTiles have been discussed below

PepsiCo

PepsiCo is a large multi national brand and with their size come problems that are also on a very large scale. PepsiCo had the issue in coordinating the activities between various teams and units present all over the world. To solve this issue, PepsiCo used the services of LiveTiles to connect over 300,000 people

PepsiCo used the drag and drop interface of Sharepoint to create dashboards for its teams, to improve collaboration among the teams and various business units. PepsiCo is now using Sharepoint to build and develop workplace solutions without code, using the services of LiveTiles.

Zurich Airport

For an airport speedy and timely communication is the key to making sure that operations run smoothly. This is why Zurich airport used LiveTiles to create an intranet based on Sharepoint to smoothen the communication along every direction in the organizational structure.

BDO

BDO is one of the top accounting firms in the world. It faces regular queries from thousands of young accounting students about the recruitment programs of BDO. LiveTiles helped BDO create a Chat bot that can reply to any query any time of the day, using the large data base of the company.

Some of the other use cases whose stories are available on the official website of LiveTiles are

  • Moorabool Shire Council
  • European Office Solutions Company
  • Rakuten Medical
  • Markon Solutions
  • Ministry of Foreign Affairs of Denmark
  • Virgin Australia

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Financials

The financials of LiveTiles are painting a slightly worrying picture. Profit margins are in the negative and the business has been running a net loss in the last two years. One good thing is that the sales or revenue figure is going up and this year on year increase shows that the company is constantly able to find new markets and customers.

This is because of the aggressive growth policy of the business. The net loss is also because of this aggressive policy because the company is spending too much money on growth, this expenditure is resulting in the expenditures being high and thus the profit margins are in the negative.

EBITDA is showing signs of improvement but since there is no net profit, the shareholders cannot get any return in the form of dividends. The liquidity position o fthe company looks safe for now although it is a little bit on the low side. The company is also running a negative net operating cash flow, which shows that the expenditures of the company are too high.

The stock price of LiveTiles has been very volatile over the past two years and this means that short term investors can gain a lot if they time their trades properly. If we look at the shareholder profile of the company, we can see that LiveTalk has few institutional shareholders and a majority of general shareholders. This shows that for the time being LiveTiles has not come on to the radar of big shareholders. This does not mean that the company is not worth investing into because some of the institutional investors are shareholders of LiveTiles. It simply means that the company is not yet in its break out phase to be able to attract enough attention.

LiveTiles is in a very rapidly growing sector and it is clear from their portfolio that their client base is diverse and shows the experience that the company has generated in just six years of its operations. Its aggressive growth strategy also shows the vision and commitment of the board to transform this Melbourne based company into a global venture.

Disclaimer

Australia Unwrapped provides only general, and not personalised financial advice, and in no way has taken your personal circumstances into account. Investments go up and down, any questions talk to a financial advisor. This blog is opinion only and in no way should investment decisions be based on this information.

Australia Unwrapped does not endorse or vouch for the accuracy or the authenticity of postings, comments or the article

Main Image Source: Pixabay

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Dave Peterson

Dave Peterson Passion for adventure and sharing his life long journey with as many others as possible. "What lies behind us and what lies before us are tiny matters compared to what lies within us." HENRY S. HASKINS

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