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The Bigtincan Holdings Ltd (ASX: BTH) share price is at a weekend high.
At the time of writing, the ASX artificial intelligence (AI) share is up 17% to 34.5 cents.
Why is this ASX AI share shooting high?
Investors are buying shares of the AI-enabled sales enablement automation platform provider following the release of a business update.
According to the release, the company is undertaking a cost reduction program that will reduce normalized operating costs by approximately 10%. This includes reducing full-time roles and making adjustments to contractor and program costs, with a focus on non-customer roles in the USA.
The management noted that this is based on the performance achieved in fiscal 2023, which helped the company turn to cash flow breakeven.
Also boosting the ASX AI share is an update on potential takeover interest.
The company has disclosed that it has received several expressions of interest regarding potential control transactions. Bigtincan has established a data room to facilitate due diligence checks for interested parties whose expressions of interest are deemed worthy of further investigation.
Currently, many interested parties are active in the data room and the process is progressing well. However, management cautioned that there is no certainty that any transaction will take place.
Bigtincan also issued an update on its outlook for fiscal 2024.
Based on progress in the first half, Bigtincan sees multi-hub ARR growing to 30%+, revenue starting from generative AI technology and returning to stable historical levels in FY 2024 with continued new logo and expansion growth.
Management also highlights that its cost reduction program will enable the company to further grow on the metrics achieved in fiscal 2023. These are positive cash flows, as well as ARR, revenue and EBITDA growth.