Why is the LiveHire (ASX:LVH) share price tumbling 13% today?

It's not a good day to be a LiveHire shareholder.

| More on:
man grimaces next to falling stock graph

Image source: Getty Images

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

The LiveHire Ltd (ASX: LVH) share price is plummeting today on the back of the company's latest quarterly report.

At the time of writing, the LiveHire share price is 34 cents, 12.82% lower than its previous close.

Let's take a look at the quarter just been for LiveHire.

But first, what is LiveHire?

LiveHire operates a cloud-based human resources platform focused on the hiring process.

It operates in 2 segments, its Talent Community, a software-as-a-service, and its Direct Sourcing business, which allows large organisations to use Talent Community to source and hire contract-based employees.

The company has been listed on the ASX since 2016.

The quarter that's been for LiveHire

The LiveHire share price is dropping today despite the company's North American Direct Sourcing business reporting 700% more revenue than it did in the prior comparable quarter.

The business' revenue came to $576,000 over the quarter just been. While that was significantly more than the first quarter of financial year 2021, it was down from $686,000 in the previous quarter.

The business also onboarded 3 new clients, bringing its total number of clients up to 17.  All up, that's an estimated contract value of $5.4 million.

The company believes its Direct Sources business is on track to have around 36 clients by the end of this financial year.

The company's software-as-a-service business brought in 8 new clients over the quarter just been. However, it lost 5 in the process. As of 30 September, it had 141 clients.

Talent Community's annual reoccurring revenue was $4.5 million at quarter's end – 3.5% more than it was at the end of the previous quarter.

The business' client retention also improved. It increased from 91% to 96%.

LiveHire reported it received $1.6 million of cash receipts over the first quarter.

It also saw its operating cash burn increase to $2.3 million, down from the fourth quarter's $1.6 million cash burn.

It ended the quarter with $13.2 million in cash, enough to fund another 9 quarters identical to its last.

LiveHire share price snapshot

While today has been a tough one for the LiveHire share price, it's been performing well this year.

Right now, it is 21% higher than it was at the start of 2021. It has also gained 6% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 man working on his laptop.
Technology Shares

Can Xero shares surpass $200 in 2025?

Let's see what analysts are saying about this market darling.

Read more »

A player pounces on the ball in the scoring zone of the field.
Technology Shares

Why this ASX sports tech share looks like a winner

Catapult Group has been delivering outstanding returns for investors. Will the winning streak continue?

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Technology Shares

Why this top fund manager thinks this ASX tech share can continue rising

Investors can be excited about this stock.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Broker Notes

Macquarie tips 28% upside for this ASX All Ords tech stock

Let's see what the broker is saying about this growth stock.

Read more »

happy teenager using iPhone
Share Gainers

Up 96% since April, should I still buy Life360 shares today?

A leading expert offers his verdict on the growth outlook for the surging Life360 share price.

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

DroneShield shares charge higher on European expansion plans

This high-flying stock is surging again on Tuesday. But why?

Read more »

Human head and artificial intelligence head side by side.
Technology Shares

NextDC share price jumps 8% on big news

Another big announcement has caught the eye of investors this morning.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »