The Elmo Ltd (ASX: ELO) share price is flat at $5.17 today with just $3,100 worth of shares traded as at 11.30am despite the software-as-a-service HR business reporting a quarterly operating cash profit of $48,000 on revenue of $9.79 million for the quarter ending December 31 2018.
The top-line result was up an impressive 75% on the prior corresponding quarter, although a disappointment is that the $9.79 million is marginally down on the two prior quarters' results.
Elmo blamed this on the "seasonality of collections", with pressure on it to now deliver a big third quarter in FY 2019 in terms of cash receipts.
The group also completed the acquisitions of HROnboard and BoxSuite around the turn of the year and reports that it still has a pipeline of acquisition opportunities.
It had cash on hand of $39 million as at December 31 2018, with the CEO commenting that given its market opportunity its strategy remains to invest for growth even at the expense of profitability.
Elmo shares are up around 4% over the past year and it's a rising software-as-a-service small cap worth watching alongside the likes of Pro Medicus Limited (ASX: PME) and Nearmap Ltd (ASX: NEA).
