The LiveHire Ltd (ASX: LVH) share price is climbing today after the company released its results for FY 2020. At the time of writing, the LiveHire share price is up 5.63% to 37.5 cents after closing yesterday’s session at 35.5 cents.
What LiveHire does
LiveHire operates a cloud-based, online human resources productivity platform for sourcing and recruitment teams. It aims to deliver talent on demand for companies of all sizes.
LiveHire currently has 112 enterprise clients consisting of 105 across Australia and New Zealand and 7 in North America. The company has operations in all three major workforce markets. These include direct sourcing of contractor talent, internal mobility and redeployment of existing employees, and recruitment of new employees.
What’s driving the LiveHire share price?
FY 2020 was a big year for LiveHire as it entered the North American market and continued growing its revenue. Investors are driving up the LiveHire share price after the company reported solid revenue growth year on year (YOY) of 31.8% to $3.45 million. Of this, 84% of revenue occurred via recurring streams demonstrating strong customer satisfaction.
Another important metric to track with software-as-a-service (SaaS) companies is annual recurring revenue (ARR). This provides a 12-month forward view of recurring revenue, demonstrating the company’s future prospects. On this front, the hiring company posted strong YOY ARR growth of 38% that was delivered mainly via Australian direct sales.
In terms of client growth, there were 43 client wins in the period across a range of industries, thus closing the year with 112 clients, which equated to a 42% increase. LiveHire is building a pipeline of clients through direct sales in Australia and partnerships in both Australia and the United States, with a focus on new client wins in both markets.
Some other highlights of the report included the growth in cash receipts up to $4.5 million, representing 43% YOY growth. This left LiveHire with a strong balance sheet and a cash balance of $21 million with no debt. As such, the company remains well funded to continue future growth opportunities.
Furthermore, the company’s business restructure has been completed following its accelerated software development phase in FY 20 to open up international markets.
What now for the LiveHire share price?
Looking forward, LiveHire aims to use its recent US expansion to boost revenue. The US expansion, through its channel partners, should bring speed to revenue generation via the direct sourcing market. The revenue stream will grow as more customers are won and each contract ramps up to its full deployment. The LiveHire share price is currently trading 63% higher for 2020. If its expansion efforts continue to be successful, there is no reason why the LiveHire share price won’t go on climbing.