The LiveHire Ltd (ASX: LVH) share price is rocketing higher today on the back of a new contract win. After being up by as much as 22.73% in early trade, LiveHire shares have pulled back somewhat to sit at an 11.36% gain for the day at the time of writing.
LiveHire is a recruitment platform that enables employers to keep digital track of candidates within one ecosystem. According to LiveHire, its platform can help save its enterprise clients time and money by streamlining the recruitment process and potentially even cutting out recruiters' sky-high fees.
LiveHire was founded in 2011 in Melbourne and went on to publicly list on the ASX in 2016 at an initial public offering price of 20 cents per share. The company's client base includes leading brands like Vodafone, Asics, Nissan, and Xero Limited (ASX: XRO).
What did LiveHire announce?
Shortly before market open this morning, LiveHire revealed it has won a contract with the Victorian State Government to provide technology to help deploy staff into critical areas of need.
More specifically, the state government will use LiveHire's platform to profile, match, and engage current employees in order to transition them into critical roles across the state government.
According to the announcement, the Victorian government contract is approximately 8 times the average annualised recurring revenue per client across LiveHire clients.
The initial term of the contract is 12 months, and the state government has the option to extend the term for a further 12 months.
Commenting on the contract win, CEO Christy Forest said:
"LiveHire has unique capabilities in search, match, skills profiling and personal communications, making our solution highly suitable for organisations which are now increasingly required to bring a more agile approach to workforce mobility."
"Similar to our work for other Australian State Governments, we will leverage our platform to assign well-fitted, available employees to in-demand roles from a newly created Talent Community for Victoria's Jobs and Skills Exchange," she added.
While today's announcement was welcome news for investors, it's important to note that LiveHire is on the smaller end of the ASX in terms of market capitalisation. Factoring in the 11.36% share price rise at the time of writing, LiveHire shares have a market capitalisation of just $74 million.