Shares in online human resources company Xref Ltd (ASX: XF1) are up 20% this week after the job reference checking business announced a number of new high-profile clients.
The company claims it now has more than 600 clients across 7 countries that use its software-as-service (SaaS) platform to verify the employment and personal history of job applicants. Xref claims the software platform helps its clients save time and money, while helping protect companies from fraud or operational blunders.
The highest profile business to sign-up this month is U.S. instant photo messaging tech startup Snapchat Inc. that employs 1,900 staff globally. According to Xref, Snapchat selected its platform to assist its reference checking process while it continues to recruit to drive its growth.
Other high profile clients include L'Oreal (Australia) and Shangri-La Hotels (UK), with quarterly revenues up 28% on a sequential basis and nearly doubling year-on-year.
The company has also partnered with leading HR platforms such as Checkr and Workday, while investing heavily to grow its business internationally.
For the quarter ending September 30 2017 Xref posted revenues of $1.34 million, which translated into an operating loss of $3.17 million thanks mainly to $2.7 million in staff costs. The company has cash-on-hand of $7.9 million which suggests it may be forced to raise capital within the next 12 months.
The stock is changing hands near a 52-week high of 77 cents and while the growth story is impressive the financials still leave plenty of room for improvement. As such I'm keeping it on the watch list for now.
