Shares of 1-Page Ltd (ASX: 1PG) have defied the general negativity surrounding the market this morning after the human resources technology company said it had renewed six client contracts.
1-Page is likely to be unfamiliar to most investors, given that it only listed on the ASX in October last year. The Silicon Valley-based company is striving to revolutionise the way in which employers hire and promote staff by empowering businesses to rank and select job candidates by asking them to complete ‘one-page challenges’ relating to the role they’re applying for.
In theory, this method should save the employer valuable time and costs while it should also heavily reduce staff turnover, given that the successful candidate is more likely to be suited to the role in the first place.
Of course, this remains a highly speculative prospect that investors should approach with caution. While it could certainly pose a threat to companies such as SEEK Limited (ASX: SEK) in the future, it needs to be able to demonstrate its platform’s ability to deliver the goods. In part, that means being able to sign contracts with new enterprises, whilst also renewing contracts with existing ones.
Pleasingly, in today’s update, the company said it had renewed six client contracts in June. Five of those were renewals for 1-Page’s Talent Assessment Platform while the other also signed a 12-month renewal to continue using the 1-Page Internal Innovation Platform.
1-Page said: “The six clients that have signed 12-month contract renewals with 1-Page have in excess of 88,000 employees across industries including consumer, retail, hospitality and IT and engineering. These industries typically experience the largest amount of turnover and volume applicants.”
The company also confirmed that it has welcomed several big-name customers and successfully transitioned 100% of their pilots into long-term paying customers. That is an excellent sign for the business and shows that things are running smoothly.
As it stands, 1-Page’s shares trade at $1.85 per unit which represents a massive 436% gain since the stock first listed on the ASX. At the same time, the shares have actually retreated 19% since hitting a record high of $2.29 in March, which investors could consider using to start building a small position in the company.
As highlighted above, 1-Page is a speculative bet so investors should only ever invest an amount that they can comfortably afford to lose in case things go pear-shaped, but the future could be bright for this young company.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.