Bigtincan Holdings Ltd (ASX:BTH) has signed an extension agreement with existing US-based customer T-Mobile, to extend its contract by $6.3 million of total contract value over two years.
This takes the total contract value of $18.4 million since the initial deployment of the T-Mobile contract in August 2017.
The extension agreement expands T-Mobile’s use case which includes retail stores, B2B sales and other groups across the business utilising Bigtincan’s capabilities as a platform including software development kit’s (SDK) and application programming interface’s (API).
Bigtincan’s initial contract with T-Mobile was won by competitive tender in August 2017 and involved deployment of the Bigtincan Content Hub application to 5,500 retail stores on up to 23,000 mobile devices.
Subsequently, the contract was further expanded to include the use of Bigtincan Learning Hub across customer-facing sales users.
Business model of ‘land and expand’
Bigtincan’s business model of ‘land and expand’ is designed to enable the company to achieve long term growth through contracts that are underpinned by strong unit economics.
This is created through investment in the core technology platform coupled with smart tech-focused mergers and acquisitions.
The company’s strong unit economics are underpinned by the cost of acquisition being lower than the high customer lifetime value of a contract, contributing to the growth of lifetime value (LTV) and strong lifetime value to customer acquisition ratio (LTV/CAC).
By the end of FY20, Bigtincan achieved an LTV of $363 million and has achieved an LTV/CAC of between 3.5 and 4.5 since the first half of FY18.