Australia-based intelliHR Holdings Limited (ASX: IHR) unveils its 2019 Growth Plan in the presentation released on Friday, 7 December 2018.
The company is currently getting on with its target of $30 billion global market by 2025. Partner program is aimed as a key to success for global expansion growth. So far, the company has shown significant success in New Zealand and now the UK is its next target. The company also intends to make an early stage entry in the US, building fast growing cloud-based HR platform.
intelliHR Holdings Limited (ASX: IHR), a company based on SAAS model, provides global software platform that automates manual HR processes, provides authorized organizational data and analytics to businesses and professionals and allows real-time management of people.
Its securities got listed on Australian Securities Exchange in January 2018. The company enables digital transformation with fast evolving advanced technology. This small cap company currently sitting at the market capitalization of $11.59 million generates recurring revenue on long-term subscription based contracts.
The company operates through three distribution model that includes Direct, Partnership and Integration. In Direct model, the company targets to acquire new customers and retain the existing ones through direct sales and marketing activities. Digital marketing is one of the key channels that company focusses on for lead generation activities. In Partnership model, intelliHR partners with third party providers for customer acquisition, selling a new service wrapped around the intelliHR technology and providing training and visibility support. Last, Integration model is in the process of development by the company. Under this model, the company focuses to integrate with new age communication platforms, administrative systems like payroll & finance and strategic systems like recruitment & learning/content. It will allow the company to sell intelliHR platform in online marketplaces and also create intelliHR’s own marketplace in future.
GROWTH PLANS OF THE COMPNAY:
For 2019, the company targets to achieve 70/30 direct to partner Channel Split and beyond that 30/70 direct to partner channel split is planned. To build exponential ARR, the company follows a pipeline that starts from increase in new customer win velocity, then moves to grow the customer base, increasing paying users and thereby building exponential ARR.
Further to achieve these targets, the company intends to increase its sales team from current 6 direct sales persons to 10, Increase sales rate per month per sales person and Increase qualified sales pipeline which is currently 111.
On customer analysis front, the company aims to mid-market of US$18.5k to US$147k LTV with staff members of 30 to 400. The time to sale has been fixed to four months with average customer headcount of 115 and Average ARR (USD) to $12,814.
Beyond 2019, the company aims to grow direct sales force globally to 30 staff with local representatives in Australia, New Zealand, the UK, Europe, the North America, Asia while having strong online marketplace. The stock price of intelliHR has nosedived by 4.545% to trade at $0.105 on 7 December 2018 (1:49 PM AEST).
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