The LiveTiles Ltd (ASX: LVT) share price is dropping lower on Thursday following the release of its FY 2020 results.
At the time of writing the intranet and workplace technology software provider's shares are down over 4% to 22 cents.
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How did LiveTiles perform in FY 2020?
For the 12 months ended 30 June 2020, LiveTiles reported a 98% increase in revenue to $44.5 million. This includes a 58% increase in other income to $6.7 million, related largely to government grants.
And while the company made good progress on restricting its operating expense growth to 11% during the year, its expenses still vastly outweigh its revenue at $76.2 million.
As a result, LiveTiles posted a statutory net loss after tax of $31.6 million and an underlying net loss after tax of $21.3 million.
But thanks to a $55 million equity raising in September, the company finished the period with cash on hand of $37.8 million.
"Significant step-change".
LiveTiles' Co-Founder and Chief Executive Officer, Karl Redenbach, was very pleased with the company's performance.
He said: "We are very pleased with our FY20 results, including the significant step-change we made during the year to reduce our operating expenditures and improve our cash flow. This hard work following our September 2019 capital raising has supported us to maintain a healthy balance sheet position with cash on hand more than doubling when compared with last year."
"Our Board has reiterated the Company's near-term financial objective to reach operating cash flow breakeven during 2020, subject to operating conditions. Further, our confidence in the medium term outlook remains as strong as ever. Our team is hugely energised with the opportunity to help customers supporting their employees to communicate and collaborate in the new world of remote working," he added.
Outlook.
In light of uncertainty created by the global pandemic, LiveTiles will not be providing guidance for FY 2021.
Though, it has advised that it will continue to focus on reducing its cash burn and is reviewing additional options including short-term revenue and cost initiatives to support this objective.
Outside this, its directors "continue to expect strong long-term growth potential for the Group, driven by increased remote working and demand for digital workplace software to support organisations."
