The Xref Ltd (ASX: XF1) share price is on the move during Wednesday morning. This comes after the human resources technology company provided investors with a quarterly trading update.
At the time of writing, Xref shares are up 5.77% to 55 cents apiece.
How did Xref perform for Q1 FY22?
According to its release, Xref advised of a robust first quarter into the new financial year, underpinned by new sales opportunities.
Sales jumped 126% to $5.4 million against the prior corresponding period. The company stated that what is traditionally the lowest sales period of the year, new client acquisitions grew 78%. This accounted for 19% of Xref sales and the average deal size increased by 45% when compared against Q1 FY21.
New notable clients introduced during the quarter included The Arnotts Group, Fortescue Future Industries and Ozcare in Australia. International additions consisted of Kiwibank in New Zealand, Maybourne Hotels and H&M Group in the United Kingdom, and more.
Revenue ticked up 77% to $3.9 million, predominately driven by Xref's credit usage which doubled in the quarter. The company has more than 30 live integrations with channel partners.
Cash flow surplus came to $1.2 million for the period, with cash in the bank totalling $9.4 million at 30 September.
Management commentary
Xref executive director and CEO, Lee-Martin Seymour said:
Companies are starting to witness the effects of what has been coined 'The Great Resignation'. Millions of workers around the globe calling time on their employers. Sector, Geographical and Role changes are contributing to what is sure to be one of the biggest migrations of talent ever seen.
We are witnessing this through record lead flow, which is, in turn, feeding growth in new client acquisition. We are soon to launch our new platform, which will be 100% self-service and subscription-based. It is expected to increase our addressable market tenfold, positioning us well for growth. The whole Xref team are super excited about the opportunities that lie ahead.
About the Xref share price
Over the last 12 months, Xref shares have accelerated by almost 250%, with year-to-date up around 60%.
Based on today's price, Xref presides a market capitalisation of roughly $104.82 million and has about 182 million shares outstanding.
