Why the ELMO (ASX:ELO) share price will be on watch this morning

The ELMO Software (ASX: ELO) share price will be followed by investors today after the company released a positive update. Here's the lowdown.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ELMO Software Ltd (ASX: ELO) shares will be in focus today after the company announced it has launched another new product. At Friday's close, the ELMO share price finished the week at $5.70.

Let's take a closer look at what the cloud-based human resources and software solution provider announced. 

asx share price on watch represented by investor looking through magnifying glass

Image source: Getty Images

New module launch

ELMO shares could be on the move today as investors digest the company's latest new release.

In a statement to the ASX, ELMO advised it has launched its 'Predictive People Analytics' module.

Developed in collaboration with the University of Technology Sydney, the module uses artificial intelligence to predict employee behaviour. This includes identifying such things as a high-performing employee who might represent a 'flight risk'.

In addition, the platform also provides visualisation tools and insights to aid management in decision making. ELMO explained that the module allows a company to achieve the best outcomes by driving employee engagement, insights, and retention.

ELMO noted that the launch will bolster its competitive offering in the marketplace and provide new revenue streams.

What did management say?

ELMO CEO and co-founder Danny Lessem further explained the new module, saying:

Predictive People Analytics provides organisations with powerful insights into employee behaviour. These insights give HR teams and management opportunities to identify, and act on, situations that require action, as well as providing valuable insights across the entire workforce.

Mr Lessem also touched on the applications for its newest product, adding:

The introduction of this new module further broadens and strengthens ELMO's competitive offering and will have relevance for both new customers as well as ELMO's existing customer base.

About the ELMO share price

The ELMO share price has lost almost 20% over the past year and is down more than 10% year to date. The company's shares hit a 52-week high of $8.06 last May, before going on a rollercoaster ride.

On valuation metrics, ELMO presides a market capitalisation of about $508 million, with approximately 89.2 million shares on issue.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottles in front of them cheering on one of their teams on a phone.
Earnings Results

Light & Wonder earnings: Q2 profit and recurring revenue up in FY26

Recurring revenue reached US$580 million in the second quarter.

Read more »

Smiling young parents with their daughter dream of success.
Technology Shares

Why Life360 shares could be a strong buy this month

Looking for big returns? Bell Potter expects this tech stock to surge.

Read more »

A woman in a red dress holding up a red graph.
Technology Shares

How high does Macquarie think Life360 shares will go?

This tech company is looking undervalued.

Read more »

A man in a business suit scratches his head looking at a graph that started high then dips, then starts to go up again like a rollercoaster.
Broker Notes

Down 23% and 58%, should I buy TechnologyOne and Xero shares now?

A leading expert provides his forecasts for TechnologyOne and Xero shares.

Read more »

A blue globe outlined against a black background.
Technology Shares

A rare buying opportunity in 1 of Australia's top shares?

I think this business could be significantly undervalued.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

Should you buy Life360 and Xero shares in August?

Millions of customers already rely on these platforms, and each business is finding new ways to become more valuable to…

Read more »

A woman sits on a chair smiling as she shops online.
Technology Shares

Should I buy Block and Zip shares in August?

Payments may only be the starting point for both companies. Here's my view on these tech stocks.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Technology Shares

DroneShield shares: Buy, hold, or sell?

The business is growing rapidly, but the latest forecasts have made the valuation much harder to ignore.

Read more »