LiveTiles (ASX:LVT) has revealed a major agreement in the US which will add US$2.7 million (A$3.4 million) in annualised subscription revenue.
The deal with sales and marketing consultancy, N3, means the company’s annualised revenue from subscription services will surpass $10 million.
However, even though the software license agreement with N3 will add a monthly payment of US$225,000 to LiveTiles the sales and marketing agreement will cost LiveTiles US$800,000 a month.
N3 is an outsourced sales and marketing execution vendor for Microsoft’s Azure and Dynamics platforms. In addition to Microsoft, N3’s global clients include SAP, IBM and Cisco.
LiveTiles has licensed its full suite of intelligent workplace software to N3 for implementation within N3’s global sales organisation, customised AI portals and dashboards, and collaboration with LiveTiles on innovative partner-relevant products and solutions.
“Through our daily efforts helping global clients integrate and sell cloud technology we are exposed to many solutions,” N3 co-founder and CEO, Jeff Laue, said. “N3 has chosen to license the LiveTiles platform because we are convinced LiveTiles’ intelligent workplace software solutions will optimise N3’s internal processes, improve collaboration and generate increased performance.”
Both companies have also engaged in a sales and marketing agreement which will see N3 providing outsourced sales and marketing consulting and execution services including global demand centre design and deployment, digital demand generation and, sales opportunity qualification and full-cycle sales and customer success for small and mid-sized customers.
The agreement is set to drive LiveTiles’ sales and marketing efforts in the Americas and EMEA.
“We are very pleased to be partnering with N3, Microsoft’s leading sales and marketing execution vendor in North America,” LiveTiles co-founder and CEO, Karl Redenbach, said. “The strength of LiveTiles’ technology platforms, coupled with N3’s go-to-market expertise in the Microsoft ecosystem is a powerful combination.”
More than 70 N3 employees will be dedicated to LiveTiles. The US$800,000 monthly payments are set to begin from April after factoring in expected government grant funding in the United States.
In the meantime, the Australian enterprise software vendor is fighting a legal case in the United States launched by a former executive who is claiming more than US$25 million in damages over alleged discrimination and wrongful termination.
Former LiveTiles executive, Anthony Girand alleges that, following an extended illness, his employment with the company was terminated without reason by LiveTiles co-founders, Karl Redenbach and Peter Nguyen-Brown.
In April 2017, LiveTiles appointed former Microsoft executive, Doug Caywood, as vice president central USA to target the centre states.