A spree of acquisitions is starting to pay off for LiveTiles as its 2020 revenue soars by 109 per cent to $37 million.
Over the last two financial years, the workplace software provide spent $75 million on three technology deals, Hyperfish, CYCL and Wizdom, and has now seen its ARR grow by 13 per cent for the year ended 30 June 2020.
In particular, its purchase of digital workplace software business Wizdom helped grow LiveTile’s services revenue by 457 per cent, from $1.5 million to $8.8 million year on year.
Broken down, subscriptions to LiveTiles’ software formed the bulk of revenue, contributing $28.9 million, growing 129 per cent year-on-year.
Government grant income also contributed $6.8 million to the vendor’s purse, rising by 58 per cent over the year.
In addition to growing revenue, the year also saw LiveTiles loss after tax shrink from $42 million to $31 million despite an 11 per cent rise in total operating costs to $60 million.
Within these, employee benefits increased from $23 million to $32 million, cited as due to the increased salary costs of acquired businesses Wizdom and CYCL and “some strategic senior hires”. However, the company also shaved $8 million off its contractor expenses.
LiveTiles had bought employee profile and directory management software company Hyperfish for $8.9 million in the last financial year, which garnered it an extra $2 million for 2019.
In the same financial period, it spent $48 million on Denmark-based Wizdom, which it integrated in the following year.
This financial year, it spent $19 million to acquire Swiss intelligent intranet software maker CYCL.
It was also cleared to co-sell its products and services to the United States government after gaining General Services Administration (GSA) approval.
This will allow LiveTiles to access US commercial deals, including the $14.6 billion Microsoft JEDI contract.