LiveHire Limited (ASX: LVH), based in Melbourne, Australia, is an information technology company with other offices in Sydney and Perth. The company provides a Human Capital performance platform known as Live Talent Communities which helps a business to manage the flow of talent. It delivers transparency through detailed visibility of talent, shifts talent acquisition from reactive to a proactive state, and reduces cost and time to hire, with an unrivalled candidate experience. It helps employers to search for new employees, and people the jobs they would love to work for.
Today, the company has provided an update over its December 2018 quarterly report. The company reported a growth of 25% or $403,000 in Annualized Recurring Revenue (ARR) over the previous equivalent period. It reported an ARR of $2.05 million on account of eight new customers (or five new customers after accounting churn) added to the portfolio.
The ARR per client (ARRPC), reported at $32,007, also increased by 15% on a q-o-q basis. The growth highlights the larger value of new clients, and the evolved pricing model. The eight new clients had an ARRPC of $58,000.
The company had won contracts from clients such as Vodafone Hutchison Australia (Mobile telecommunications), DuluxGroup (home improvement product manufacturer and marketer), Jemena (Energy infrastructure and distribution), etc.
The company had a second consecutive quarter of record cash receipts. It reported a cash receipt of $924,000 which increased by 44% as compared to September quarter cash receipt of $640,000.
The operating cash outflow of $2.781 million was below the estimated outflow of $3.870, reported in the September Quarterly 4C report on 18 October 2018. The company has no debt as on 31 December 2018 with the cash balance at the end of $25.1 million. The company estimates total cash outflow of $4.150 for the next quarter.
During the quarter, the company issued shares worth $43,000 and paid the same amount to acquire property, plant, and equipment. It also reported a higher staff cost of $2.809 million in the current quarter as compared to $2.415 million in the September quarter.
As per the management, the December quarter was LVH’s best quarter with the company being well placed for continued growth in 2019. Over the remaining financial year, LVH expects to ramp up its Direct Sales team to continue to scale the commercial growth of the business. Overall, the company continues to focus on developing new features and initiatives to further increase productivity for sourcing and recruitment teams, both for RPO and Direct clients.
Looking at LiveHire Limited’s stock performance and the return it has posted over the last few months, the stock has generated a positive return of 13.98% during the past six months. It is currently trading at $0.540 (as on 14 January 2019) with a surge of 1.887% during the day’s performance. The company has ~267.64 million shares outstanding with the market cap of circa $141.85 million. Its 52-week high and low are marked at $1.500 and $0.300 respectively.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.