Shares of 1-Page Ltd (ASX: 1PG) rose as much as 6.5% shortly after the market opened this morning after the company said it had signed two Fortune-100 enterprises to its Sourcing Platform.
So What: 1-Page listed on the ASX late last year, making it the first Silicon Valley-based company to list its shares in Sydney. The company provides cloud-based human resources software and is striving to revolutionise the way in which employers hire new talent.
Basically, 1-Page recognises that reading through potentially thousands of CVs for a single job position can be expensive and time consuming for the employer while many of the CVs the employer receives will be from applicants who aren't even qualified for the position.
What 1-Page's platform allows employers to do is to rank and select job candidates by asking them to undertake an online test to solve a real world challenge relevant to the position they are applying for. 1-Page believes the software can reduce time-to-hire from 13 weeks to just 4, whilst also improving retention rates.
In my opinion, there is strong growth potential for 1-Page and there is definitely a large market for it to capture. But it is still a very young company (which isn't yet profitable), making it vital for the company to continue adding, and retaining, new clients.
It appears to be excelling in this regard and this morning announced it had added two Fortune 100 enterprises to its Sourcing Platform. One of those companies boasts a market capitalistion of more than US$170 billion and employs more than 250,000 people, while the other has a market capitalisation of more than US$130 billion with more than 70,000 employees. That follows the announcement of six enterprise contracts in June.
Commenting on the update, Jeff Mills, 1-Page's Chief Revenue and Operations Officer said: "We are extremely excited about adding these two marquee clients to our platform… Not only does this further demonstrate the demand for our Sourcing Platform, it also validates 1-Page's ability to scale its efforts to partner with the largest companies in the world to assist them in sourcing the best talent."
Now What: At $2.13 per share, 1-Page is by no means a 'cheap' investment prospect and I don't expect it to become profitable in the near future as it continues to develop and market its products. However, it could still be a reasonable prospect for long-term investors – especially if its software goes on to rival the dominance of other companies such as SEEK Limited (ASX: SEK).
As it stands, the stock is firmly on my watchlist and I am considering building a small position at some point in the future.
