Limeade (ASX:LME) share price leaps higher on quarterly update

Companies are increasingly looking to lift employee wellbeing.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published October 19, 2021 3:35 pm AEDT

The Limeade Inc (ASX: LME) share price has seen some action in the green today. Shares are up around 2% in late afternoon trading after earlier posting gains of more than 15%.

This on a day where the All Ordinaries Index (ASX: XAO) is struggling to hold onto its 0.2% gains.

Below, we take a look at the employee wellbeing company's quarterly update for the period ending 30 September. For Limeade's accounting, that's Q3 FY21.

a woman holds a glass of water with lime in it while wearing a bathing robe and headband and standing next to a cascade of flowers from a nearby bush. — Image source: Getty Images

What was reported for the quarter?

The Limeade share price soared higher after the company reported it maintained its financial guidance for the full 2021 financial year (FY21).

That guidance was for revenue of $50-53 million, an earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $5-8 million, and a net loss after tax of $7-10 million.

Third quarter operating cash outflows were reported to be $4.1 million. Limeade says this reflects the timing effect of "a large upfront enterprise subscription" which it expected in Q3 but received in early October, at the commencement of Q4.

For the coming quarter, Limeade said it has "strong contract signings" and it expects growth in in its contracted annual recurring revenue (CARR) in H2 FY21 figures.

Looking ahead, the Limeade share price may also have gotten a lift after the company said it intends to launch a mid-market wellbeing offering in the current quarter.

Commenting on the results, Limeade's CEO Henry Albrecht said:

During the quarter we focused on serving our core enterprise wellbeing customers, integrating the TINYpulse acquisition and readying for the launch of an immersive wellbeing entry into the mid-market.

Whether a company has 2,000 or 200,000 employees, they seek to listen better and do more for their people to maximize business performance. We were very pleased at the acceleration of our late-stage enterprise sales pipeline to finalist and verbal stages as well, providing Limeade with a solid platform for growth in 2022.

The company ended the quarter with a cash position of $15.1 million and no drawn debt.

Limeade share price snapshot

The Limeade share price has struggled this year, down almost 65% in 2021. By comparison, the All Ords has gained 11% year-to-date.

Over the past month, Limeade shares are down 24%.

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