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Why the IntelliHR (ASX:IHR) share price rocketed 26% higher to a 52-week high

asx share price increase represented by golden dollar sign rocketing out from white domes
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The IntelliHR Ltd (ASX: IHR) share price has continued its positive run and stormed higher on Thursday.

In fact, at one stage the human resources technology company’s shares were up 26% to a 52-week high of 36.5 cents.

At the time of writing, the IntelliHR share price is up almost 21% to 35 cents.

Why is the IntelliHR share price at a 52-week high?

Investors have been buying the company’s shares this week after the release of an investor day update.

At the event, the company reminded investors how it is performing in FY 2021 and its plans for the future.

In respect to the former, during the first five months of FY 2021, the company’s subscribers have increased 148% year on year and more than doubled since the end of the last financial year. It is now rapidly approaching 30,000 contracted subscribers, with 28,779 contracted as of 26 November.

This strong subscriber growth has underpinned an 81.3% jump in its contracted annual recurring revenue (ARR) to $2.8 million.

IntelliHR’s Managing Director, Rob Bromage, commented: “IntelliHR has always been built to be a Global HR Platform, and our ambition from the outset was to build a global business. It is tremendous validation of our team’s commitment to this vision that approximately 40% of our subscribers are now located outside Australia, and that 4 enterprise customers from across the globe have been added in the last 6 months alone.”

“This recent enterprise success has established our credibility as having a strongly differentiated people management solution which complements the needs of these clients, and we are pleased to see a strong enterprise pipeline emerging,” he added.

What about the future?

The company is currently working on phase three of its six phase growth strategy.

Phase 3 sees the company aiming to triple its sales capabilities by servicing three jurisdictions – Australia, New Zealand, and North America.

Once this is complete, it will move onto phase four. This will see the company heading to the UK and aiming to drive further growth in the United States by tripling its online sales and partnerships.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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