Why the IntelliHR (ASX:IHR) share price is soaring 16% today

The IntelliHR Ltd (ASX: IHR) share price is on the move after the company announced a business update to the ASX. We take a closer look.

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The IntelliHR Ltd (ASX: IHR) share price is on the move after the company announced a business update to the ASX. 

At the time of writing, the data analytics company’s shares are trading for 33 cents, up 16%.

What’s driving the IntelliHR share price?

Investors are fighting to get a hold of IntelliHR shares after the company reported strong growth across key metrics.

For the period ending 28 April (first 4 months of 2021), IntelliHR delivered an improved performance underpinned by its United Kingdom expansion.

Annual recurring revenue (ARR) acquisition reached a record, up 304% year-on-year (YoY) from H1 FY20. Contracted ARR also rose to $3.55 million. A significant jump on the $1.79 million from the prior corresponding period (pcp).

Contracted subscribers also surged to 35,080, reflecting an increase of 270% of YoY numbers (12,829 subscribers).

Average lead generation in Q3 FY21 to date lifted 100% with global expansion opening in new markets.

Additionally, IntelliHR highlighted its efforts to expand into the United Kingdom and European markets. In particular, the launch of its software platform. This has already rewarded the company with a significant new United Kingdom enterprise customer win.

The company noted that the conversion of TRU West Alliance enables it to partner with the leading global engineering group, ARUP. The contract will run for a 36-month period and support up to 1,000 designers during the project’s initial phase. Revenue generation for IntelliHR is expected to come between $280,000 and $511,000 for service in the next 12 months.

In addition, IntelliHR also revealed the other 2 enterprise conversions in H2 FY21. They were an innovative container processing business, Young Guns, and specialty baby goods retailer, Baby Bunting Group Ltd (ASX: BBN).

Commentary from the managing director

IntelliHR managing director, Rob Bromage touched on the company’s strategic direction, saying:

Following our North American market successes, we chose to accelerate our expansion into the UK market. This decision has already been rewarded with ARUP and the TRU West alliance choosing to partner with intelliHR through competitive tender.

Engineering Group ARUP represents a prestigious cornerstone UK/European customer that will be supported by a new instance of intelliHR’s platform in AWS’s EU region. With Enterprise Client successes in APAC, North America, and now the UK/Europe, intelliHR is clearly being recognised as an Enterprise HR and People Management platform capable of supporting global business needs.

The IntelliHR share price has accelerated to over 500% in the past 12 months. However, year-to-date performance is down 34%.

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