Aussie-founded retail software scale-up Bigtincan bags deal with Sephora USA
Written on the 2 December 2019 by Matt Ogg
Software as a Service (SaaS) company Bigtincan (ASX: BTH) is set to finish 2019 on a high after securing a $2.8 million contract with personal care and beauty product retailer Sephora USA, owned by global luxury product leader LVMH Moët Hennessy Louis Vuitton.
Bigtincan's sales enablement automation software is used by hundreds of organisations worldwide, with strong results and contract wins helping to lift its share price by 141 per cent over the past 12 months.
With BTH shares now trading at 70 cents, the company has a market capitalisation of around $215 million.
The group's global headquarters are in Boston but its core operations are in Sydney where it was founded by CEO David Keane in 2011.
Today's deal means Bigtincan's Zunos software platform will be used to create a modern and personalised mobile content environment for thousands of frontline retail staff in the USA and globally.
"The contract underlines Bigtincan's strategy of partnering with enterprise customers to meet their requirements for a platform that can be extended and expanded through the use of Content, Learning, Add-ons and other features, that make the Bigtincan platform unique for key vertical markets," the company said.
Sephora currently operates more than 2,600 stores in 34 countries worldwide, with an expanding base of more than 460 stores across the Ameicas.
It is yet to be seen whether the arrangement will be replicated across the LVMH group, which last week reached a deal to buy its longstanding target Tiffany's for US$16.2 billion (AUD$24 million).
The Sephora deal follows a contract of the same estimated size signed in September with an unnamed US-based global sports apparel retailer that operates in more than a dozen countries.
At Bigtincan's AGM on 27 November, chairman and managing director Tom Amos highlighted "excellent progress in 2019 both financially and strategically".
"The Group continued to demonstrate strong growth in FY19 in all areas of the business whilst continuing an expansion of our technology base as the platform for future growth," he said.
Annualised recurring revenue (ARR) hit a record of $23.4 million in June, up 52 per cent on a year prior.
"Total Revenue of $19.9 million for FY19, was up by 51 per cent and the net loss after tax of $4.1 million was broadly in line with forecasts," Amos said.
"This year we have continued to expand our sales capability focussed on new customer wins and expansion opportunities, continued to be a leader in the use of data science to help our customers empower their teams and upskilled our support infrastructure.
"The Bigtincan team has demonstrated that it can continue to grow and compete on a global scale."
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Author: Matt Ogg