The 8common Ltd (ASX: 8CO) share price is in the green territory after announcing to investors that it has secured a contract extension. At the time of writing, the software solutions provider's shares are up 4.5% to 23 cents.
Let's take a closer look and see what 8Common updated the ASX with.
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Contract extension
Investors are driving the 8Common shares higher after digesting the company's latest news.
According to its release, 8Common advised it has won a contract extension with the NSW Department of Education (NSW DoE).
Under the renewed agreement, 8common will continue to provide the Expense8 platform to the NSW DoE until March 2023. Consequently, this follows the original deal that was executed in March 2016. The original deal comprised an initial 5-year term with an attached 2-year extendable option.
Additionally, 8Common highlighted that the renewal was a result of its strong product delivery, exceptional customer service, and solid relationships with the NSW DoE.
Expense8 provides travel and expense management, and card services for over 150 entities for federal NSW and Northern Territory governments. The platform has more than 132,000 active users within state and federal departments. In the NSW DoE, 22,000 active users and 14,000 credit cards are managed.
Furthermore, the additional take up of Expense8 is expected to generate $960,000 in revenue for 8Common. Notably, in FY21 alone, the company has won over $2.5 million in contracts.
What did the CEO say?
8common CEO Andrew Bond welcomed the deal, saying:
We are exceptionally pleased to continue our relationship with the NSW Department of Education. Our ongoing relationship reflects the product delivery and user benefits of our Expense8 solution. Our ability to continue to support existing customers, execute new products and onboard new customers is a testament to our product quality as well as our robust development, R&D and operational capabilities.
We continue to see a strong pipeline of growth in 2021 and we look forward to expanding our presence with the State and Federal Government sector as well as large enterprise businesses.
About the 8Common share price
The 8common share price has jumped more than 350% over the past 12 months, with year-to-date performance sitting above 50%. The company's shares hit a multi-year high today of 23.5 cents.
On valuation grounds, 8Common has a market capitalisation of $45 million, with roughly 200 million shares on issue.
