The 8common Ltd (ASX: 8CO) share price has returned to the ASX boards today to double in value. This comes after the software solutions provider announced its subsidiary, Expense8 has been selected in the GovERP panel of service providers.
At the time of writing, 8common shares are up an astonishing 95.45% to 22 cents. It worth noting that its shares reached an all-time high of 24 cents during market open.
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8common sets eyes on growth
Investors are fighting to get a hold of 8common shares after the company released an upbeat announcement.
In a statement to the ASX, 8common advised that Expense8 will be the solution provider of Travel and Expense Management for GovERP.
The acronym GovERP stands for Government Enterprise Resource Planning. Essentially, this is a system comprising a number of important corporate capabilities to deliver services. It includes financial services, human resource services, procurement services and reporting.
GovERP is part of the Australian government's Shared Services Transformation Initiative in providing resourcing and services across the public sector.
Under the agreement, Expense8 will be available under a pre-selected panel of service providers. Expense8 will be the provider under the Travel Value Stream and Expense Management Value Stream for the Shared Services Program.
The government's GovERP panel covers 90 commonwealth agencies with over 130,000 employees that participate in the Shared Services Program.
8common stated that it currently generates a Federal Government Average Revenue Per User (ARPU) of $42. The company services around 20,000 government employees across 27 different agencies.
In the past 12 months alone, 10 Federal Government agencies have been onboarded, delivering implementation revenue of $540,000.
The GovERP platform is expected to be up and running in mid-2022. The first agencies to onboard to GovERP will be the Service Delivery Office and its clients during the middle of 2023.
Management commentary
8common CEO, Andrew Bond said:
We are delighted to be included in the GovERP Panel of service providers. Our appointment is a testament to the quality of the Expense8 platform and our ability to meet the high level of service offering and security sought as part of the tender process for this whole of government initiative.
The addition of Expense8 to the GovERP panel provides a significant ability for 8common to substantially grow our footprint within Federal Government and significantly increase our implementation revenue and transaction-based SaaS recurring revenue over the coming years.
8common share price snapshot
Investors would be excited by the company's strong share price gain today, reflecting quadruple returns over the past 12 months.
Based on valuation metrics, 8common has a market capitalisation of roughly $42.1 million, with approximately 200 million shares on issue.
