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

Happy mum and dad with daughter smiling on couch after relocation to new home.
Technology Shares

Is Life360 one of the best ASX growth shares to buy?

I look at the forecasts to see whether the current share price could prove surprisingly cheap.

Read more »

A silhouette of a soldier flying a drone at sunset.
Technology Shares

Codan shares hit a new record high after the company predicts another strong year

Both of Codan's divisions are performing strongly.

Read more »

IT specialist using laptop in data centre full of server racks.
Real Estate Shares

Goodman Group vs Nextdc: Which stock is the better buy today?

Goodman Group and Nextdc are both ASX leaders in AI infrastructure. Which share is better value today? Here’s my verdict.

Read more »

Happy investor on tablet with finance graphs rising in overlay.
Technology Shares

Why brokers think Xero shares could surge 130% from here

Every analyst target beats the current share price, which is a striking signal.

Read more »

Man looking at digital holograms of graphs, charts, and data.
Broker Notes

Forget Xero shares! Broker tips this top ASX tech stock for 24% gains

This ASX tech stock has rocketed 143% in a year, and a leading broker forecasts another 24% of gains to…

Read more »

A silhouette of a soldier flying a drone at sunset.
Technology Shares

Check out the ASX's newest drone company

A successful capital raise has this company cashed up.

Read more »

A man has computer-generated images rushing through his head, indicating an AI (artificial intelligence) concept of a communication network.
Technology Shares

Nextdc vs Megaport: Which ASX tech growth share comes out on top?

Nextdc and Megaport are both ASX tech plays—but which offers the sharper growth story right now?

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero shares crashed 59%. What do brokers see next?

Growth, the US opportunity, brokers — all pointing the same direction.

Read more »