Company Profile: LiveTiles (ASX:LVT)

February 23, 2021 | Company Profiles

LiveTiles (LVT) is a company that Track Record News reported on 30 April 2020 called “Entrepreneurs who sold their successful IT business for AUD25m, start IT software venture on the ASX

LVT is a Software-as-a-Service (SaaS) company, which is listed on the Australian Stock Exchange (ASX) under the ticker LVT (ASX:LVT). The company provides no/low-code solutions that empower businesses to design user-optimised portals based on Microsoft technologies.  These portals are created using drag-and-drop functionality and can be enhanced with AI such as LiveTiles Chatbots.

Overview/Summary

LVT’s Annual Recurring Revenue (ARR) has grown from approximately AUD53m to AUD65m in the last 12 months (23% Year on Year (YoY) growth) as at 31 December 2020. The company has achieved this growth while burning AUD2.6m last quarter with AUD19m in the bank. It currently has an Enterprise Value of AUD215m.

The reasons why I believe LVT could become the next billion dollar ASX listed SaaS company, are as follows:

  • It is founded and led by 2 successful IT entrepreneurs who are majority shareholders in the company.
  • In March 2020, LVT made it into the Australian Financial Review’s (AFR) Fast 100 companies list. It was ranked fifth, achieving 110 per cent growth in the prior 12 months.
  • LVT is the number 2 Microsoft partner globally (as at 20 February 2021), second to Hewlett Packard Enterprises. This ranking further deepens LVT’s relationship with Microsoft and dramatically reduces the cost to acquire new clients and expand accounts, as Microsoft sales reps are incentivised to sell LVT products.
  • LVT products are centred around Microsoft Teams, which is one of the fastest growing Microsoft products of all time (Microsoft believes Teams will be bigger than Windows because Teams is seeing application well beyond the 115 million Daily Active Windows users).
  • A focus on channel partner distribution through some of the big 4 accounting firms and specialist IT consultancy firms, which again further increases distribution and reduces cost to grow revenues (land and expand).
  • Digital transformation, and in particular, intelligent workplaces, which is what LVT provides, has been brought forward 10 years due to COVID and rapid move to working from home. The global shock allowed the company to overhaul its sales and marketing, re-brand and refresh its product suite.
  • Following a growth strategy focussed on acquisitions (LVT acquired 3 complementary and value accretive businesses over the last fews years e.g. Wizdom, Hyperfish and Cycl), which have now all (including its original LiveTiles product) been rebranded and re-architectured into 4 distinct products (e.g. Wizdom, is now known as LiveTiles Intranet).
  • After acquiring complementary technologies (e.g. Wizdom and Hyperfish), LVT have now started to build new products again (2 new products were built internally and delivered in 2020), which means they can cross-sell more products (expand) to their existing clients (ones they’ve already landed).
  • The company grew via acquisition and early exponential growth from their initial LVT product (raising almost AUD100m and quarterly cash burn of almost AUD10m) to nearly quarterly cash flow positive. To validate LVT’s position in the market, Forrester Research states that LVT has the biggest market presence outside of Microsoft and Atlassian. The next phase for the company is to scale from a large ARR base organically and completely cement their monopoly position in the intranet market (only 1% penetrated).
  • Lastly, in the last 4 months LVT has announced their two largest ever deals, the most recent was a US-based Fortune 100 Healthcare company called United Healthcare Group, which has over 300,000 staff. The minimum contract value is AUD3m, with the potential to grow up to AUD12m over the life of the contract based on the customers possible employee headcount growth over the next 5 years, and with the inclusion of additional products and services that may be required as the project evolves. I believe these are the calibre of enterprise deals the company will continue to ‘land’ (AUD3m) then ‘expand’ (into AUD12m).

I expect continued high growth in ARR (at scale) based on refreshed product, sales and marketing, combined with a deeper relationship with Microsoft and expanded channel partners. As a result of this, there should also be ongoing improvements to operational efficiency and costs.

In addition to the qualitative aspects above, I believe LVT’s SaaS based unit economics and operational metrics conservatively put it in the 50th percentile when compared to global SaaS companies at the same stage (e.g. Gross Profit Margin (GPM) and Annual Recurring Revenue (ARR) growth), Sales and Marketing efficiency (Magic Number), Quick Ratio). Details on all of these are provided below.

Also, comparable global SaaS companies at the same stage trade at a 12 x EV/ARR multiple. LVT is currently trading at a 3.5x EV/ARR multiple (9 x differential).

Further, a similar Microsoft solution partner (SaaS company) that is expected to generate USD148m in revenues, growing at 26% for the year, was recently valued at USD2b in a merger deal. This is directionally the size and speed you could envision LVT reaching in the years to come.

Based on the qualitative and quantitative (SaaS based unit economics and operational metrics) information outlined above, LVT could be the next billion dollar ASX listed SaaS company within the coming years. The company has the ability to continue to grow its ARR at 30% YoY for the next few years (around AUD150m ARR at the end of 2024). This logic is based on the well-known Rule of 40 in SaaS, which states that, at scale, a company’s revenue growth rate plus profitability margin should be equal to or greater than 40%.

I think LVT is the perfect example of how misunderstood SaaS companies are by ASX investors and the Australian market broadly (Fidelity International, one of the largest institutional investment companies in the world, has seen the opportunity and recently amassed a 5% shareholding in the company at a 3.5x EV/ARR multiple).

What does LVT do?

LiveTiles is a workplace technology company offering expertise and software products designed to boost productivity, innovation and connection in your workplace.

It enables organizations to create true intelligent workplaces by designing compelling user experiences that maximize productivity across the board.

By providing a no/low-code solution, businesses are empowered to design user-optimized portals based on Office 365 or Azure technology (Microsoft technologies), and hundreds of available APIs.  These portals are created using drag-and-drop functionality and can be enhanced with AI such as LiveTiles Chatbots.

Who are the successful entrepreneurs involved behind the company?

Karl Redenbach and Peter Nguyen-Brown are the Co-founders of nSynergy Group. nSynergy Group is a global technology (IT) consulting and services business. It is a Microsoft-centric Cloud business focusing on Office365 implementation with offices in Melbourne, Sydney, Shanghai, New York and London. It was acquired by Rhipe Limited (ASX:RHP) for AUD25m in 2014.

After selling nSynergy Group, Karl and Peter founded their next venture, LiveTiles, in 2015. Karl and Peter founded LiveTiles because they saw a huge opportunity in the intranet space during their consulting days, so they productised their knowledge into software. In particular, they saw an opportunity to improve intranet and employee collaboration within the Microsoft ecosystem.

Why would Karl and Peter sell their successful IT consulting business and productise their service through a SaaS solution in the Microsoft ecosystem?

I believe Peter and Karl essentially consulted their way to Product Market Fit (PMF) while at nSynergy (where the LiveTiles concept was originally conceived). They saw that they could productise a service that all companies would increasingly need (in particular, large enterprises within the Microsoft ecosystem). They both continue to be at the forefront of driving value and change in the space. Anyone who is familiar with enterprise digital transformation understands how critical digitising the workplace is and the role that intranet plays in that. Microsoft is the technology stack that dominates enterprises, so distributing and imbedding yourself within their ecosystem was a clear and obvious decision, an insight they acted on at the right time!

As a result of their efforts since listing LVT on the ASX in 2015, in March 2020, LVTmade it into the Australian Financial Review’s (AFR) Fast 100 companies list. It was ranked fifth, achieving 110 per cent growth in the prior 12 months. Since listing it has amassed a portfolio of the largest companies globally.

Digital transformation and transition to intelligent workplaces (COVID has accelerated this)

Organisations seeking to transform the way they use their technology stacks often overspend on complex consultant solutions or succumb to status quo, missing the opportunity to create more intelligent workplaces where employees can work in a simpler, more collaborative, and efficient manner. 

The Forrester Research below shows how LVT has the biggest market presence outside of Microsoft and Atlassian (don’t worry LVT doesn’t compete with Microsoft, you will read more about how Microsoft explains their relationship later on in the article):

LVT is the dominant player in the Microsoft ecosystem (e.g. LumApps who partnered with Microsoft back in 2019, is natively architectured in Google and recently announced their partnership with Google cloud). From day 1 LVT was Microsoft aligned through Peter and Karl’s experience and relationship with Microsoft (the success and alignment of LVT within the Microsoft ecosystem is evidenced by their position as the number 2 global Microsoft partner – as at 20 February 2021).

How did Peter and Karl grow LVT so fast and where is the company at now?

Pre-COVID

Since 2018, LVT has spent AUD75 million on three technology deals, Hyperfish, CYCL and Wizdom. It’s purchase of digital workplace software business Wizdom helped grow LVT’s services revenue by 457 per cent, from AUD1.5 million to AUD8.8 million YoY. In terms of ARR, subscriptions to LiveTiles’ software formed the bulk of revenue, contributing AUD28.9 million, growing 129 per cent year-on-year.

However, growth began to stall around late 2019 as the acquisitions slowed. As the company began to position itself for cash flow positive operations and publicly stated AUD100m ARR goal by June 2021, and then COVID struck.

Since COVID, the company has completely overhauled itself but not in a way that would cause concern. They overhauled their sales and marketing (terminating their agreement with outsourced Microsoft aligned sales organisation, N3), created 4 products from their suite of internal and acquired products (e.g. Wizdom is now LiveTiles Intranet) and their whole approach to marketing and distribution was sharpened (e.g. really engaging branding and marketing efforts including regular conferences and webinars, as well as executing and deepening channel partnerships with Microsoft and leading industry consultants like Deloitte and PwC). It’s as though COVID forced their hand and made them do what they needed to ultimately do…

The images below show the new marketing and branding, as well as the new way in which products are communicated, compliment one another and provide value for clients.

Post-COVID

LVT has now started building products again, and committed to delivering 2 new products by the end of the 2021 calendar year.

In addition to the 4 products outlined above, LVT has rolled out Vibes and Smart Video (see images below). This step change in how ‘they grow their product suite’ (from acquisition to development) evidences the change I spoke of above. 

I believe these products have been developed in conjunction with clients, which should result in immediate increase in ARR as a result of new client acquisitions and upsell to existing).

The AUD65m ARR has given them the base to expand existing client revenues by cross selling 2 more products.

Target Addressable Market (TAM)/Market Opportunity

Now that LVT has an AUD65m ARR base, they can monopolise their position as ‘the’ intranet solution with the fast growing and dominant Microsoft ecosystem, where Microsoft clients are rapidly moving to intelligent and digital workplaces (working from home and digital transformation). 

They have captured only 1% of the Microsoft 365 market (see image below) out of a multi-billion dollar industry. 

The unassailable lead they now have allows them to grow their existing products and introduce new products (built in-house) to cross-sell to their existing clients.

Microsoft Teams and the exploding Microsoft ecosystem

Jeff Teper, corporate vice president for Microsoft 365, Teams ‘will be even bigger than Windows’.

“Teams is Microsoft’s fastest-growing business app ever. That was true in 2018, long before lockdowns started juicing up numbers for remote work and learning. As of April 29, Microsoft Teams had 75 million daily active users, up 70% just six weeks prior. That month, Microsoft saw more than 200 million meeting participants in a single day, generating more than 4.1 billion meeting minutes.”

Microsoft Teams now has 115 million daily active users (DAU), said CEO Satya Nadella during an earnings call with analysts in late 2020. That’s a 475 percent increase over the 20 million DAU that Microsoft reported for Teams in November 2019, before a huge portion of the global workforce started logging in from home offices rather than their companies’ office space. It’s also a 53 percent jump over the last number Microsoft released, which was 75 million DAU in April.

Microsoft’s productivity and business processes segment, which includes Office 365 and Teams, reached US$11.74 billion in revenue during the latest quarter, up 14.6 percent from US$10.24 billion the year before. Office 365 commercial revenue rose 25 percent, while Dynamics 365 revenue climbed 47 percent.

In terms of Microsoft’s cloud infrastructure, “now more than ever, organizations are relying on Azure to stay up and running–driving increased usage,” Nadella said.

Microsoft’s intelligent cloud segment surged 27.2 percent during the company’s fiscal third quarter, to US$12.28 billion, up from US$9.65 billion during the same period a year earlier. Powering the growth was a 59-percent spike in Azure revenue.

Sharepoint is where Microsoft clients start with their usage of LVT, but the real opportunity is the 115m DAU for Reach, Vibes and Quantum. This is a very recent case study of a European airline company using LiveTiles reach. 

LiveTiles is number 2 in the top 50 Microsoft partners globally (as at 20 February 2021).

Partners are ranked based on the quality of their content marketing across web, blog and social channels. LVT is the number 2 partner globally second to Hewlett Packard.

For comparison, AvePoint which was recently valued at USD2bn in a merger deal (more on this below) is ranked around number 45.

LVT has a very high content score, high SEO rank and engagement, meaning they have a fantastic marketing machine and product suite in the Microsoft ecosystem, which should translate to more, and higher quality, lead generation in the enterprise space.

LiveTiles is described by Fifty Five and Five as:

“When it comes to B2B technology brand awareness LiveTiles is playing at the top of the game. Their strategy revolves around the business benefits of their solutions, drawing leads and customers in with a quality website that combines beautiful design with smart writing. They take visitors and leads alike on an engaging journey with clever lines and clear calls to action.”

To emphasise the deep and long-standing relationship that LVT has with Microsoft, in 2018 LVT was presented with Microsoft’s “US Modern Workplace Transformation Partner of the Year” award, recognizing its advancements in workplace integration of AI. Also in 2018, LVT won “Best Application of AI in the Enterprise” at the AIconics AI Summit.

LVT’s dominance in the Microsoft ecosystem is its competitive advantage, and the quality of its dominance is the defining feature of this advantage. For example LumApps, a competitor in the Forrester analysis provided above, has moved to Google Cloud while Microsoft is now co-selling LVT products. 

The combination of strong Microsoft alignment and #2 partner position means more and higher quality leads should be generated for LVT to close and drive continued ARR growth in a cost effective way (more on how they are already doing this well and why it should get better).

LVT is a potential multi-billion dollar acquisition

Recently, a Microsoft 365 Solutions company called AvePoint, announced a merger with Special Purpose Acquisition Company (SPAC) called Apex at a valuation of USD2bn.

AvePoint is the largest Microsoft 365 data management solutions provider. It is the leading global Microsoft strategic cloud partner, with solutions that drive large and mid-market customers’ digital transformation journey in the Microsoft cloud.

AvePoint expects to generate approximately USD148 million in total revenue for the year ending December 31, 2020, which would be an increase of approximately 26% over 2019 revenue.

LVT and AvePoint are very similar in that they are leading and fast growing SaaS companies in the Microsoft ecosystem (both Microsoft solution partners). 

As a result, AvePoint is a comparable acquisition for LVT if it were to reach a similar level of revenues and growth rates.

What are LVT’s most important SaaS based unit economics and operational metrics? How do they compare to other global SaaS companies? Why do I think it will continue to grow its ARR fast at scale?

The 4 most important metrics for LVT are:

  1. Gross Profit Margin (GPM)
  2. Year on Year (YoY) ARR Growth Rate
  3. Annual Recurring Revenue (ARR) Quick Ratio
  4. Sales and Marketing Efficiency (using the Net Bessemer Customer Acquisition Ratio)

Gross Profit Margin (GPM)

Gross Profit Margin (GPM) is a commonly misunderstood concept when it comes to technology companies. Software companies enjoy very high margins, usually above 70%. 

I believe LVT’s GPM is around 80% because they have publicly stated this in their presentations when they reference the company’s Lifetime Value (LTV) (extract at the of this article details recent LTV numbers referencing 80% GPM).

This means LVT’s GPM are in the 50th Percentile of SaaS companies at its current stage (sub $75m ARR).

Year on Year (YoY) ARR Growth Rate

Benchmarking LVT’s ARR growth against comparable B2B SaaS Metrics, its 23% YoY ARR growth rate puts it in the 50th percentile for a company between the AUD50m to AUD75m ARR stage (refer to graph below, where I have marked that LVT sits just below the 50th percentile of B2B SaaS companies between $50m and $75m ARR using the purple dot). 

Please note that the square on each candle in the graph below denotes the 50th and 75th percentile range, and the top and bottom of the stick denotes the 90th and 25th percentiles respectively (90th percentile being the best, 25th percentile being the worst).

Also, for a more detailed breakdown on how I analyse operational metrics and unit economics, I suggest you read my Pointerra (ASX:3DP) article. Reading the 3DP article before the LVT article will give you a better understanding of the most important B2B SaaS operational metrics and unit economics, how to calculate them and why they are important to determine a company’s potential.

LVT has grown their ARR organically and inorganically (diagram below) since FY17. Going forward they have publicly stated they want to grow their ARR organically, which can be validated by their new and growing product suite (not buying other companies and products – inorganic).

Also, for a more detailed breakdown on how I analyse operational metrics and unit economics, I suggest you read my Pointerra (ASX:3DP) article. Reading the 3DP article before the LVT article will give you a better understanding of the most important B2B SaaS operational metrics and unit economics, how to calculate them and why they are important to determine a company’s potential.

LVT has grown their ARR organically and inorganically (diagram below) since FY17. Going forward they have publicly stated they want to grow their ARR organically, which can be validated by their new and growing product suite (not buying other companies and products – inorganic).

Annual Recurring Revenue (ARR) Quick Ratio

I have estimated that LVT has a SaaS Quick Ratio of about 3.5, which means for every dollar of ARR they lose each quarter they make AUD3.5 (using publicly available information e.g. employees in relevant business functions and expenses that relate to sales and marketing).

This puts LVT around the 75th Percentile for Quick Ratio performance with a ratio of approximately 3.5, which can be seen from the graph below.

LVT’s Quick Ratio has been improving over the last 3 quarters. However, more time is needed to really know how good their Quick Ratio is because of the changes to their sales and go-to-market strategy (e.g. terminating outsourced sales and bringing it in-house, new product suites, new marketing strategy etc). Given that it is stable at the very least is a very positive sign (e.g. made approximately AUD3m ARR in each of the last 3 quarters, which consistently shows they can acquire more recurring revenue after the changes earlier in the year).

The Magic Number (Sales and Marketing Efficiency)

Based on my estimations, using publicly available information LVT has a Magic Number of 1.5. This means they currently spend AUD1 dollar on sales and marketing and make AUD1.5 of ARR. Essentially, this indicates that its sales and marketing engine is efficient at acquiring new ARR.

A SaaS company’s Sales and Marketing (S&M) Efficiency is commonly referred to as the Magic Number.

I use a derivation of the Magic Number, which is closer to the Bessemer CAC ratio. 

As suggested above, you can read more about the Magic Number and other operational metrics and unit economics here.

Based on my analysis, this means they have a Magic Number (Bessemer CAC ratio) of ~1.5 and puts it around the 75th percentile when compared to global venture backed SaaS companies. Refer to the graph below for a benchmark comparison.

This means its sales team and marketing spend is becoming more efficient and productive, which puts the company in a position to scale in a capital efficient way.

I usually prefer underspending and discipline early than overspending and then working out how to operate efficiently, however, LVT has seemed to have gotten so far ahead of the competition and then worked it out (e.g. now driving growth through channel partners and internalising sales and marketing). I would expect the Magic Number to get to around 1 over the coming quarters/years, as they work out the best way to market and sell (spending AUD1 to make AUD1 ARR, and then growing that AUD1 of ARR through cross-selling and up-selling).

Another reason why I think they will continue to maintain a steady Magic Number is the 200+ global channel partner system they have (see image below). Such a system drops the cost to acquire clients, which is the most costly sales and marketing related exercise. A very positive sign in the inclusion of specialist services once the client has been acquired, not only during the acquisition stage (the left hand side of “Customers” in the image below).

In terms of the growth through partners, the most important partner is Microsoft. Microsoft sales reps are now incentivised to sell LVT products (see below for more on how the Microsoft co-sell programs work).

In addition to their service channel partners (and Microsoft) LVT are partnering with other global SaaS and technology companies like Canva (see below for Canva and LVT integration visuals).

Canva has over 18m users on their platform, and has recently accepted LVT into their Canva Pro Affiliate program (access to their premium subscribers). In early 2021 LVT and Canva will be launching the LiveTiles Employee Experience Academy with Canva, which will provide their respective clients with links to integrated products to enhance their digital workplace and employee engagement. The objective is to strengthen existing relationships and open up a new pipeline of global company leaders looking to create modern and best practice workplaces.

In summary, the ability for customers to access LiveTiles solutions through partners (e.g. Microsoft Teams displays LVT as an app or solution within their ecosystem) means that the cost to acquire clients should be lower and the ability to expand existing clients should be easier and quicker. For example, as you will read below, LiveTiles Reach seems to be the product with the shortest sales cycle and leads to up-sell and cross-sell of other larger ARR generating products.

Where to from here for LVT?

In terms of what’s next for LVT, there is no guarantee of continued success and growth.

However, using operational benchmarks allows an investor to make the most informed decisions and remove some of the emotional-biases when investing in B2B SaaS companies.

Also, the company is perfectly placed to monopolise their position in the Microsoft ecosystem, especially now that Microsoft is co-selling their products alongside 200+ other global channel partners.

LVT is focussed on three regions, namely:

  1. Europe, the Middle East and Africa (EMEA)
  2. Americas
  3. Asia-Pacific (APAC)

I suspect most of the company’s short and medium term growth will come from the US and Canada, and EMEA to support growth. I think a lot of work done in 2020 will bear fruit in 2021 following the impacts of COVID (working from home and digital transformation). For example, from memory, LVT has stated that it has given some clients free trials/discounts during COVID and these should be realised in 2021.

EMEA

EMEA seems to be the dominant region due to a majority of total ARR, clients and fast growth of channel partners which have attracted the likes of Coca-Cola and GSK. They should be able to up-sell and cross-sell in this region to drive ARR growth.

Americas

Having doubled their pipeline in what is likely to be their biggest opportunity and shorter sales cycles (90 days with LiveTiles Reach), I expect a majority of LVT’s ARR to be generated in the Americas. I suspect that the doubling of the pipeline, which should convert into sales in the next 6 months is due to the region’s appetite for digital transformation and Microsoft’s 3 Inside Sales Centres. Also, the increased Request For Quote (RFQ) and joint enterprise go-to-market campaigns with Microsoft will see this region (most likely US and Canada) dominate LVT’s short and medium term growth.

APAC

This region seems to be slower in new client acquisition (or at least large contract sizes) and more about focus on upsell and cross-sell. I expect much of the growth in the region to come from the public sector where the majority of digital transformation is occurring. Also, the Microsoft partnership will be the most important and likely dominate in this region instead of other channel partners.

What could LVT’s ARR grow to based on conservative industry benchmarks?

There is a concept called Growth Persistence (growth decay) in SaaS, whereby:

“As a rule of thumb, therefore, next year’s growth rate is likely to be 85% of what this year’s was.”

What the rule above is saying is that if LVT grew ARR by 100% last year, then this year’s ARR growth would be 85% (proven by a study SaaS companies ranging from $1M to $1B in revenues globally).

Using a low rate of 65% instead of a high rate of 85%, meaning each year LVT’s growth will be 65% of its last year’s growth, this is what we might expect from LVT’s ARR over 7 years (from 2021 to 2027):

Conservatively, we can see that LVT hits AUD100m in ARR in 2 years time (with a 31% and 22% growth in ARR in the respective years). LVT should be able to at the very least achieve this while maintaining cash flow break-even given their operational metrics and unit economics outlined above (e.g. they are not giving away $1 for 80c like most fast growing technology companies).

After 7 years, ARR reaches approximately AUD150m as growth decays but persists over a large ARR base.

How is the company being valued now and what opportunity might this present for investors?

I believe LVT’s SaaS based operational metrics put it in the 50th percentile when compared to global SaaS companies at its current stage (purple dot in the graph below).

However, because LVT has raised more than AUD100m, burnt as high as AUD8m in a single quarter and went on an acquiring spree, investors view LVT as a notorious cash burner.

As a result, despite the company’s performance and underlying operational efficiencies (as outlined above), it is being valued below that of a 25th percentile SaaS company (the worst performers). 

LVT is another example of how Australian investors do not understand how to build SaaS companies and the strategy required to dominate a market. LVT is reaching break even and still growing relatively fast, and the shift to organic growth through channel partnerships, inside sales and marketing and internal product development (instead of acquiring new products) should see high growth continue while maintaining cash flow break-even (no dilution).

Its current EV is approximately AUD215m (as at 20 February 2020), which puts its EV/ARR Multiple at approximately 3.5x (AUD215m/AUD65m).

A comparable SaaS company in the 50th percentile, as per the diagram above, commands a 12x EV/ARR multiple (this is a 9x differential).

Another way to look at it is that IPO’s with 20-30% ARR growth at 100m ARR and cash flow positive have for many years received a 10x multiple on ARR.

If LVT achieves the conservative growth persistence outlined above, one can expect a re-rating very quickly, and a continued high multiple over many years given the large free cash flows it will produce.

Also, as per LVT’s own Lifetime Value (LTV) calculations below, the company is trading below its LTV, which is an estimate of the net profit that the business will make in the future by continuing the relationship with the customer.

So LVT may present a rare opportunity for investors to own a stake in the next billion dollar ASX SaaS company. 

Disclaimer: At the time of publishing this article, I own shares in ASX:LVT.

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