8Common (ASX:8CO) bags contract in GovERP program, shares tilt up

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8Common (ASX:8CO) bags contract in GovERP program, shares tilt up

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8Common Limited, ASX:8CO, software company, technology stocks, ASX
Image source: © Nicoelnino | Megapixl.com

Highlights

  • Technology company 8CO’s share price is up on ASX today.
  • 8Common Limited has received its’ second contract from the Australian government.
  • 8Common has till now signed contracts worth over AU$1.4 million under the GovERP program.

ASX listed software solutions company, 8common Limited’s (ASX:8CO), shares are tending upwards on ASX. The company has bagged in its second contract under the Federal government’s GovERP program. Post this news, share price has sloped up on ASX, trading at AU$0.185 each, as at 12:33 PM AEDT, over 2.77% above previous close.

What is the 8Common’s contract under GovERP program?

  • 8common Limited has received a contract under the recently signed Australian government
  • GovERP deed. The contract is an AU$752k (including GST) contract from the government.
  • The contract covers, upgrading and pre-onboarding consultations for seven existing customer entities to the GovERP version of Expense8.
  • The Expense8 platform is an end-to-end travel expense management software, that helps improve an organisation’s productivity and reduces chances of fraud with its expense auditing feature.
  • After 8CO delivers, Expense8 software, users from fourteen agencies will be able to utilise the expense management platform for ongoing transactions and recurring revenues.
  • As of now, 8CO generates a Federal Government ARPU of AU$42, and revenue from this contract shall be recognized by it in Q3 and Q4 of FY22.
  • 8CO expects to onboard more government agencies under the GovERP agreement in the remaining FY22 and the coming FY23.

With this contract and previous other GovERP deeds, the total value of contracts bagged in by 8CO under the GovERP has crossed over AU$1.4 million (including GST).

Bottom line-

8CO’s flagship Expense8 platform is driving significant revenues, from the government. The current contract adds on to it. As a result, 8CO shares are reflecting a positive investor sentiment about the same, on ASX.

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