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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
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Thank you all for standing by, and welcome to the LiveTiles Limited Q4 Financial Year '22 Results Call. [Operator Instructions] I would now like to hand the conference over to Mr. Karl Redenbach, CEO. Please go ahead.
Good morning, everybody. I'm here joined with Jarrod Magee in Melbourne this morning, and we'll be going through the Q4 results. And before I start, for those that don't know LiveTiles, we are specialists and experts in employee experience Software-as-a-Service. And we have got over 1,000 customers, including the likes of Nestle, Foot Locker and UnitedHealth Group, all across the globe with operations in Europe and the U.S. and Asia Pacific.
Today, we'll talk about the results we'll go through. We'll also have a Q&A session as well for those who would like to ask some questions. But in particular, I'm pleased to announce our operating revenues of unaudited number of $52.8 million, up 17% on FY '21. We will be putting out in late August our full results once they've been audited, and we look forward to getting those results out.
Our contracted licensed user base of 2.77 million at 30 June '22, up 20% from the 2.32 million at 30 June 2021. We had cash receipts in the quarter of $12.9 million and which was a 10% increase on the prior corresponding period in FY '21. And we'll have -- Jarrod will talk a little bit more about some of those operating cash flows for Q4. We have an available -- total available cash balance of $17.1 million. Our -- and ARR, annualized recurring revenue number of $65.6 million as of 30 June, which is up 4% on the previous corresponding period on a constant currency basis.
We also secured a key upsell deal out of Europe with a 3 -- on a 3-year basis, which is great to see. And last but not least, I'll talk a little bit more about this, we acquired the Human Link business, which has been going very well, particularly in expanding our employee experience programs and really what we're trying to do in the EX [indiscernible] [inclusion ]. So for those, Jarrod will be talking through the finance highlights in a minute, but I thought we'd just flip to Page 4 for those that have seen our 4C update, which has been released on the ASX platform, which we'll talk about some of the key, I suppose, highlights for the quarter as far as launching our operational efficiency. And one of the things I can say is that we are achieving strong operational integrations. And we're through -- over the many years, through the several acquisitions we have done and made much more complex through COVID, where typically we'd be able to have people in a room. We are now having some of those people in the room, which is fantastic to see.
So we've got people meeting in Europe. We've got our teams in Ireland, Denmark and Switzerland, communicating and integrating, I think, better than ever. And we are starting to see customers which I think is a great thing. So as we said, if we go back to the last fiscal year and we look back to where we were in July to sort of November of last year was pretty dark period. I think for a lot of people certainly based here in Melbourne, it was very trying times when we couldn't leave our houses. But we're starting to see customers. We're starting to see events happening, which is great. And the good news about that is we're starting to build a great pipeline of -- a really strong pipeline of enterprise customers.
So -- and then from a general perspective, we would have loved to have landed more enterprise customers in this quarter, Q4. One of the challenges of running an enterprise Software-as-a-Service company, particularly where you have large ARR deals, some of those deals do take time. So the good news is that pipeline is still strong. We expect -- and is still growing, but importantly, we expect to be in those lines over the coming months and quarters.
One of the biggest items that we launched, which is an initiative that we started about 12 months ago in the planning, and it started when we had Simon Sinek, who, for those that don't know, is one of the world's business leaders or leadership experts, I would say, where we had many people attend a session October, November last year regarding the why of the company and the purpose. And we've done a great job with our very large accounts and helping them drive purpose-driven organizations technology using our software. And one of the key things that we had, both on request and as a strategic goal is what we call the Employee Experience Academy, and we launched that this quarter.
We had the founders, Kelly Michael and Steve Macdonald of Human Link launch that with another expert in this space on the topic that work will never be the same. And really, we see this as a tailwind for our business where people came out of COVID and working more from home using digital tools like ours. We see as a huge opportunity to provide communication, connection, collaboration platform for companies and organizations particularly mid to large, companies to connect with their employees.
So this was all about providing access to EX experts, which is really the key purpose of the EX Academy. We've got an on-demand virtual learning and insights. And the link for this -- for those who are actually going to look at it, theexacademy.com, which is provided on Page 4 of the 4 -- Appendix 4C and look at what we're doing in that space. And the great news is we had over 350 executives from Europe, the U.S.A. and APAC turn up to that. And we believe some of those were key decision makers. And already, the feedback we've had really such a short amount of time on that is that this is extremely helpful, and we believe ultimately will drive people to our platform and for our business over time. So that was some great growth initiative that we've launched and we've invested a lot of time and effort into getting that up to where it needs to.
So the next component that we'll talk about here on Page 4 is the integration of Human Link. So we've been -- we've seen some great take-up, particularly during the period of the likes of BHP, PwC, Microsoft, just to name a few of the large organizations that we're working together. We now have a number of key programs, employee experience programs or EX programs that are embedded into the global business. This has been part of, I suppose, our operational folks.
And when we're talking about the likes of, for example, BHP, which is obviously one of Australia's largest companies and us being able to embed both the approach of these programs plus our technology, we think there is very large upside in how we can go to market. And they're the large companies, but obviously, the likes of being able to communicate, collaborate and through these programs and most importantly, improve each of these organizations, we think is a huge opportunity. So -- and then the other key component with Human Link is we did successfully launch the team and their products into the U.S. market. So that was a big focus for the quarter, and we feel that we've got that business really well iterated and are a really great go-to-market for FY '23.
And the last thing I just talk about is that we're continuing to develop our product and our product road map. We've been -- we're very lucky that we believe we've got an extremely stable and successful product in our 1,000-plus customers. And again, a lot of those customers are very large, big names with very highly secure customers that require constant support and update. But more importantly, we've been approved through the wins that we've had over FY '22 and some of those very large wins with large names that our product is resonating, that it's more relevant than ever, especially in a post-COVID world where people working at home. And we see that the feedback we're getting from all types of organizations or different types of industries that it's an important topic.
We believe that the employee experience market is going to continue to grow, and that there's a large upside, particularly as I've mentioned, being able to get into C customers for the first time for a long time over the last couple of quarters, and importantly, start to run events. And we're working very closely with Microsoft on a number of key events all across the world. So you'll see some information coming out shortly on events we're running in New York, some events we're running in Europe and some of the successes we're getting there.
So that's a sort of a quick operational update. I'll now throw it over to Jarrod, who will go through some of the financial information we've provided.
Thanks, Karl. So I'll now recap the key financial highlights for the quarter ending 30 June 2022.
In regards to our cash update, the June quarter cash receipts of $12.9 million was a decline by 11% when compared to June 2021 period. During the quarter, there was approximately $1.7 million lower-than-expected customer receipts that were due to be collected by 30 June but saw delays in being paid before the quarter was able to close out. Pleasingly, as of today, we've seen 60% of this amount having already been collected after 30 June.
On a trailing 12-month basis and for the full year FY '22 financial year, cash receipts rose 10% over the 12-month period to a total of $56.7 million. In relation to the cash flows, as per the appendix 4C, the net cash operating outflows for the quarter was $2.3 million, which is $1.1 million higher than the prior period. And as previously mentioned, this operating outflow result has been impacted by the delayed customer seats incurred for the quarter alone. Pleasingly, the operating cost base during the June quarter has remained flat again to the prior quarter and has also improved by $0.6 million when compared to the June 2021 operating cost base.
On a trailing 12-month basis, net operating cash flows improved by $12.6 million and 68% to a net outflow of $5.9 million for 12 months. And when adjusting for any one-offs and government grants, the underlying net outflows was $4.1 million and a 34% improvement compared to the prior corresponding period. In terms of the breakdowns, operating cash outflows during the quarter related to the business operations, we saw the following: staff costs of $3.4 million, R&D spend of $5.4 million, products and operating cost of $3.9 million, advertising and marketing of $800,000 and admin and corporate cost of $1.2 million.
For the combination of the above cash performance and movements, the closing cash on hand at 30 June is $13.1 million with an additional $4 million still available to draw on from the OneVentures facility, thus bringing total cash available to $17.1 million and keeping the business in a strong financial cash position as we enter FY '23.
As mentioned at the start of our call, our full year operating revenues that remains subject to finalization of the audit was $52.8 million, growing 17% over the prior year period, a great result that is underpinned by strong growth within our software subscription revenue base. Another one of our key business metrics saw our contracted user license base grow 20% to 2.77 million over the past 12 months, up from 2.32 million as at 30 June 2021. And we have seen continued growth coming from within the LiveTiles Reach product that on its own is growing 79% over the same period.
As Karl touched on, ARR for the quarter was $65.6 million, which sees an increase of 4% compared to the prior period. And when compared to the March 31 quarter just gone, of which ARR was $64.1 million, there was an increase over the quarter assisted with just over $1 million, $1.4 million FX tailwind through the June quarter. On a constant currency basis, when comparing and using June 2021 FX rates, the ARR was $65 million. Customer ARR net retention over the same -- over the trailing 12 months was 91%, and our total customer base now sits at 1,087.
So that covers the key financials for the June quarter. Any further details can be found within our ASX announcement and the accompanying Appendix 4C. I'll now pass back to Karl who will wrap up before our Q&A session.
Yes. So hopefully, that gives you a flavor. As I've said, we would have hoped that some of our customers, enterprise customers would have closed in the quarter. The positive news is that our pipeline is continuing to grow, obviously, strong revenue result compared to FY '21. And the challenging times that we have had, we feel we're optimistic, particularly now that we're running events. We have people starting to see each other in the teams, which is just a critical component, particularly when you're trying to develop enterprise-grade technology, and you are trying to do it globally.
So when you've got the likes of some of these very large customers, it's very difficult to do everything remotely particularly when we talk about some of the complex security things that we need to do as well as our road map that we're building a product road map within our engineering team.
We think we've got some of the top engineers in the world, but we're feeling really confident about the product road map and the pipeline, which is a key element as well for the most wins we've had in the quarter.
So I think we're happy to open up to Q&A, and I'll throw it back to the host.
[Operator Instructions] Your first question comes from Anthony De Pizzol from Shaw.
Excellent. Look, I just wanted to -- I got a couple of questions. First one, last quarter, there was issues with collecting cash receipts before the quarter end, and it looks like we've got the same thing again this quarter. Can you explain what the actual issue is with getting the cash receipts to come in on time or clients just not paying on time? What's the actual issue here?
Anthony, thanks for the question. Jarrod here. So in terms of our Q4 results, the issue we incurred in this recent quarter was really just delayed in payments. So we had a lot of commitments that would be paid by 30 June that as we expected per our collection schedule that unfortunately, weren't met in time. And be it as it may, we've since been able to collect 50% of that balance to date. And we're fairly confident we'll have most of that come back in as well.
In relation to the Q3 comment, what we saw in Q3 was isolated to a cohort of customers that we just weren't able to renew their renewals in time, which led to delayed billings, which then meant delayed cash collections as a result. Since that occurred in Q3, we had 100% of those balances that were meant to occur in Q3.
Okay. Are you able to say -- I mean, if you've got 60%, there's still 40% remaining, if you had signed the 400%, what the difference would be from cash receipts? Just we can get -- I mean, effectively, the cash receipt of $12.9 million, I mean can you give a guide as to what that would have been if the 60% had come in prior and what the 400% would have looked like -- what the number would have come in if that 400% had been collected prior to June 30?
Yes. We were expecting that $1.7 million to come in the Q4 results. That was our expectation.
An extra $1.7 million on top of the $12.9 million?
That's correct.
Okay. All right. And so 60% of that's come in and 40% is very high probability that's going to come in?
Yes. We're still in the collection phase, and we already had commitments pre-30 June. So we're still in that healthy discussions with our customers to collect those monies.
[Operator Instructions] There are currently no further questions at this time. I would now like to hand back to Mr. Redenbach for closing remarks.
Great. Well, thanks, everyone, for joining this call. As we said, we will be putting out our full set of results at the end of August, and we look forward to sharing the audited results with everyone. And again, we're happy to take any questions or e-mail or as per the ASX Appendix 4C at ir@livetilesglobal.com should you have those questions. And thanks for those joining, I think, in the U.S. Have a good evening. And around the globe, have a good day there. Thanks for joining along, and we'll speak to you soon. Thank you.
That does conclude our conference for today. Thank you for participating. You may now disconnect.