Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down almost 3% to $7.12. This morning, analysts at Morgan Stanley retained their buy rating on the audio technology company's shares. However, they have slashed the price target on them by 14% to $9.00 (from $10.50). Morgan Stanley notes that there are concerns that Audinate is facing structural headwinds. While it appears optimistic that the headwinds are cyclical and not structural, it is looking for more colour when the company releases its results later this month.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is down 3% to $6.38. This is despite there being no news out of the rare earths producer on Tuesday. Though, it is worth remembering that its shares did avoid the market selloff on Monday and charged higher. This could mean that some profit taking is happening today. Yesterday's gain appeared to have been driven by news that Gina Rinehart's Hancock Prospecting has increased its stake in the company to 8.21% from 7.14%.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is down almost 2% to $1.29. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the media company's shares to a neutral rating with a trimmed price target of $1.45 (from $1.65). UBS made the move amid concerns over increasing content costs and a challenging advertising market. Nevertheless, this price target still implies relatively decent upside potential of 12% over the next 12 months.

Xref Ltd (ASX: XF1)

The Xref share price is down over 19% to 12.5 cents. Investors have been selling this human resources technology company's shares after its shareholders voted against being taken over by Seek Ltd (ASX: SEK). The job listings giant commented: "Despite a unanimous recommendation from Xref's Board of Directors and the Independent Expert concluding that the Scheme is fair and reasonable, and in the best interests of Xref shareholders in the absence of a superior proposal, 67.60% of votes cast were cast in favour of the Scheme, falling short of the required threshold of 75%." The two parties have now agreed to terminate the transaction.

The post Why Audinate, Lynas, Nine, and Xref shares are falling today appeared first on The Motley Fool Australia.

In morning trade, the human resources technology company's shares are down a sizeable 26% to 11.5 cents.

This follows news that its takeover by an $8 billion ASX 200 stock has collapsed.

Which ASX 200 stock?

The ASX 200 stock that was looking to acquire Xref was job listings giant Seek Ltd (ASX: SEK).

In November, the two parties signed a deal that would see Seek acquire the small cap tech stock for approximately $40 million.

At the time, Xref revealed that after careful consideration, its board unanimously recommended shareholders vote in favour of the deal. This was in the absence of a superior proposal and subject to the independent expert's report. In addition, each Xref director intended to vote their Xref shares in favour of the transaction subject to the same qualifications.

And with the independent expert, BDO Corporate Finance Australia, assessing the value of an Xref share on a controlling interest basis to be in the range of $0.129 and $0.214, the ASX 200 stock's offer was given the thumbs up.

This is likely to have led to many believing that this was a done deal. However, it seems that not everyone was supportive of the transaction.

Shareholders vote down takeover

According to an announcement this morning, only 67.60% of votes cast were in favour of the transaction, which falls short of the required threshold of 75%. Seek advised:

Despite a unanimous recommendation from Xref's Board of Directors and the Independent Expert concluding that the Scheme is fair and reasonable, and in the best interests of Xref shareholders in the absence of a superior proposal, 67.60% of votes cast were cast in favour of the Scheme, falling short of the required threshold of 75%.

In response, the ASX 200 stock reiterated that its offer was best and final, and the two parties have agreed to terminate the scheme implementation deed with immediate effect.

The ASX 200 stock revealed that it will now look elsewhere for growth opportunities. It explains:

SEEK has previously announced that its offer was its best and final offer. It considered the offer to be fair and reasonable, which was confirmed by the Independent Expert, and Xref's board unanimously recommended the Scheme. Accordingly SEEK will continue to explore other opportunities to grow placements, grow yield and improve operating leverage, which may include alternative approaches to achieving the benefits that the Scheme would have provided.

The post Guess which $8 billion ASX 200 stock just failed with a takeover bid appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Appen Ltd (ASX: APX)

The Appen share price is up 3% to $2.23. Although this artificial intelligence data services company has just raised $50 million at an 11.5% discount of $1.92 per new share, investors are looking beyond this and focusing more on its accompanying trading update. For the three months ended 30 September, Appen achieved revenue of $54.1 million. This represents a 12.9% decline over the prior corresponding period. But if you exclude the loss of Google as a customer, Appen's revenue would have increased 34.6%. Another positive was that Appen achieved a breakeven EBITDA result for the period.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 4% to $1.60. This follows news that the Federal Government has awarded Major Project Status to Chalice Mining's 100%-owned Gonneville PGE-Ni-Cu-Co Project. Management notes that this recognises the project's "national significance" to the development of Australia's critical minerals sector. CEO Alex Dorsch said: "It is particularly pleasing to receive this support from the Commonwealth in addition to the Strategic Project status recently granted by Western Australian Premier Roger Cook."

GenusPlus Group Ltd (ASX: GNP)

The GenusPlus share price is up 1.5% to $2.63. This follows news that the specialist power and communications infrastructure and services provider is making an acquisition. It has entered into a binding, conditional agreement to acquire Partum Engineering for a total consideration of up to $16 million. Partum provides engineering design services to various public and private customers, including GenusPlus, with revenue of ~$16.2 million and EBIT of ~$4.1 million in FY 2024.

Xref Ltd (ASX: XF1)

The Xref share price is up 55% to 21 cents. This morning, it was revealed that Seek Ltd (ASX: SEK) is aiming to acquire the human resources and recruitment technology company for 21.8 cents per share in cash. This represents a 61% premium to where it last traded and implies an enterprise value of approximately $45 million. Seek advised that the proposed transaction is consistent with its strategy and focus on trust in its employment marketplace. It feels that Xref's capability is a logical extension of Seek's product offering and addresses a clear need for its customers.

The post Why Appen, Chalice Mining, GenusPlus, and Xref shares are racing higher today appeared first on The Motley Fool Australia.

At the time of writing, the job listings giant's shares are up 2% to $25.49.

This compares favourably to a 0.25% gain by the ASX 200 index.

Why is this ASX stock pushing higher?

Investors have been buying Seek's shares today after it announced plans to potentially acquire fellow listed company Xref Ltd (ASX: XF1).

According to the release, the two parties have entered into an exclusivity deed following the submission of a non-binding indicative proposal that would see the job listings company acquire Xref for 21.8 cents per share in cash by way of a scheme of arrangement.

This represents a 61% premium to where the ASX stock last traded and implies an enterprise value of approximately $45 million.

Xref is an Australia based human resources and recruitment technology company that offers a range of reference and pre-employment checks, employee engagement, and exit surveys.

The two ASX stocks announced a partnership in June to explore opportunities to collaborate and improve the way reference checks are used in employment. It seems that this partnership has gone well and Seek now wants to bring its business in house.

Management notes that the proposed transaction is consistent with Seek's strategy and focus on trust in its employment marketplace. It feels that Xref's capability is a logical extension of Seek's product offering and addresses a clear need for its customers.

Intention to recommend

In a separate announcement, Xref revealed that after careful consideration of the proposal, the company's board unanimously determined that it is in the best interests of shareholders to progress the indicative proposal.

The directors of the ASX stock intend to unanimously recommend shareholders vote in favour of the proposed transaction. This is subject to the parties entering into a binding scheme implementation deed on terms consistent with the indicative proposal and following completion of Seek's confirmatory due diligence.

The intended recommendation will be subject to no superior offer being received and an independent expert concluding that it is in the best interests of Xref shareholders.

Both Seek and Xref note that the discussions remain incomplete, and there is no certainty that any transaction will eventuate. As a result, shareholders do not need to take any action in relation to the indicative proposal at this time.

This hasn't stopped Xref shares from taking off this morning. At the time of writing, the ASX stock is up 55% to 21 cents.

The post Guess which $9 billion company is acquiring another ASX stock appeared first on The Motley Fool Australia.

But ASX tech share Xref Ltd (ASX: XF1) is charging far higher, up 8.3% to 39 cents per share.

This comes following the release of the human resources technology company's full-year results for the 12 months ending 30 June (FY22).

Here are the highlights.

Xref share price soars on rocketing profits

• Total revenue of $18.6 million, up 29% from FY21.
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 75% year on year to $1.8 million
• Net profit after tax (NPAT) of $730,000, up 834% from the prior year
• Net cash generated from operating activities up 99% from FY21 to $4.6 million

What else happened with the ASX tech share during the year?

FY22 was a record year for sales and revenue for Xref.

Total expenses were up 20% from the prior year, to $16.9 million. That was largely driven by higher marketing spending and increased wage costs. The company said the extra spending will support continued revenue growth and product development.

The company said it remained the number one ranking reference checking company on peer-to-peer review site G2, with an average 4.7-star rating. Its global Google review rating is 4.8 stars, while Capterra reviews also award the ASX tech share with 4.7 stars.

What did management say?

Commenting on the results sending the ASX tech share higher today, Xref CEO Lee Seymour said:

All regions grew strongly in FY22. North American revenue grew 49% year on year with revenue from the United States growing by 129% when compared to FY21 showing strong demand for Xref's products from this area…

Clients who joined Xref prior to FY2020 accounted for 60% of revenue in FY2022. Clients who joined in FY2021 grew by 131% in FY2022 and revenue from new clients grew 32% when compared to the previous year. This demonstrates Xref's strong track record in client retention and increasing customer life time value.

What's next?

Xref did not offer specific guidance for the year ahead.

However, the ASX tech share did note its continued growth plans, stating, "The first half of FY23 will see Xref preparing to launch products to grow the marketplace and platform subscriptions."

How has this ASX tech share been tracking?

Despite today's rise, the Xref share price remains down 42% in 2022. That sees the ASX tech share underperforming the All Ordinaries, which is down 9% year to date.

The post ASX tech share Xref rallies on 834% profit boost appeared first on The Motley Fool Australia.

This is despite the human resources technology company reporting record results for FY22.

Xref share price slumps despite record result

In unaudited results released today, Xref reported figures for the final quarter of FY22:

• $5.8 million in sales
• $5.5 million in cash receipts
• $4.6 million in revenue.

The company says this completes a record year, with annual sales of $21 million during FY22. This is up 35% on the previous corresponding period (pcp). Revenue totalled $18.6 million, up 28% on the pcp.

What else did Xref report?

The company said revenue from the use of Xref Credits grew 27%. Sales of Xref Credits grew 4% compared to the previous June quarter.

However, the lower demand for cryptocurrency reduced the identity checks sold by RapidID by 62% compared to Q4 FY21.

As a result, sales were $5.8 million, 9% lower than Q4 FY21.

Xref launches Trust Marketplace

Xref also released a new investor presentation to the ASX today.

It details the company's 'next generation platform' and the new Trust Marketplace product.

In its statement, Xref said:

Sales of identity and graduate checks as well as additional checks from vendors on the Trust Marketplace will replace the reduction in sales from the Crypto market.

RapidID was highly dependent on crypto clients previously and the new growth plan will diversify the revenue sources of Rapid and therefore de-risk that part of the business.

The company said the staged rollout of the next generation platform would continue in FY23.

What did management say?

Xref executive director and CEO Lee-Martin Seymour said:

During the fourth quarter many of the organisations we work with had been adversely impacted by floods, sickness, salary pressure, rising interest rates, the effects of war in Ukraine and the Australian federal election.

However, due to the broad sectors and regions that contribute to our revenue we have once again broken records, remained profitable and demonstrated our resilience.

We are delighted to launch our new investor presentation which showcases our new platform, strategy and value and signals what is set to be a very exciting year ahead.

Chairman Tom Stianos said:

The results for the financial year 2022 signal a strong performance. Sales growth and profitability allow us to continue to invest in growth and execute our strategy.

The team have delivered consistent growth throughout the year whilst keeping costs flat during a time of continued market uncertainty.

The post Xref share price tumbles 19% despite record result for FY22 appeared first on The Motley Fool Australia.

And this ASX tech share still has plenty of potential, according to our in-house analyst Chris Copley.

Copley sat down with our chief investment officer Scott Phillips earlier this month to discuss his bullish view of software provider Xref Ltd (ASX: XF1).

Their chat was part of The Motley Fool's Stock of the Week series. This week's stock pick, as well as past picks, can be found on our YouTube channel. Audio-lovers can also find this week's stock pick in podcast form here.

At the time of writing, the Xref share price is 64 cents.

Though, it's important for readers to keep in mind that when Copley talked over the company's investment thesis, its shares were trading at around 53 cents.

Let's break down why the analyst is optimistic about the tech company's investment potential.

But first, what is Xref?

It's a relatively unheard of ASX small-cap, but Xref is doing big things in the human resources (HR) sphere.

The technology company provides a cloud-based automated reference checking software for the employee hiring process.

It also has an ID verification leg – acquired in 2019 – and can provide employers with analytics, additional tools, and minimise fraud risks to help companies on their hiring journeys.

For instance, the company will flag with an employer if an applicant's references were sent from the same device as their application.

Xref has a market capitalisation of around $117 million and has been listed on the ASX since 2007, according to the exchange.

Why does this Motley Fool analyst see in the ASX tech share?

Chris Copley is bullish on ASX tech share Xref for plenty of reasons.

Firstly, he's been blown away by Xref's recent growth.

"In terms of execution, it has by far and away exceeded my expectations over the last couple of years," said Copley.

"In fact, Xref has been one of the very few companies which has managed to buck the growth company trend."

The Xref share price has gained an impressive 154% over the last 12 months.

For comparison, the S&P/ASX All Technology Index (ASX: XTX) has slipped 5% over the same time frame.

"The company generated sales growth of around 95% in the first half of the year," continued Copley.

"It also generated positive operating cash flow of around $2.3 million, so its top line growth has been very strong and this has been supported by the great resignation around Australia and around the globe over the last year and a half.

"But equally, even more impressive perhaps, is the fact that this growth, even if you look back over the last few years, has come without significant increases in its operating expenses."

The analyst also likes the niche space Xref is operating within. Though, it's still large enough.

The company's technology is available around the globe and in multiple languages. And Copley is impressed by the speed with which Xref has expanded internationally.

He noted that, in 2016, just 1% of its revenue came from overseas. Fast forwarding to Xref's most recent financial year, 7% of its sales came from Europe, 11% from North America, and 11% from New Zealand.

It also boasts a growing user base of "reputable" companies, says Copley, with plans to add more features to its offerings.

Additionally, since its 2019 acquisition of Rapid ID, the business' customer base has grown by more than 2,000%.

Copley also likes that Xref is still led by its founder and CEO, who is also its largest shareholder.

Finally, the analyst noted that, at the time of recording, the company was trading at a valuation of slightly more than 30 times its free cash flow.  That valuation "isn't particularly demanding," said Copley.

 What are some of the risks of investing in Xref?

While Copley is bullish on the ASX tech share, it's still important to outline some risks of investing in the company.

Firstly, Xref does have competitors. Copley noted it's worth keeping an eye on how those industry peers might slow or block Xref's expansion internationally.

Additionally, there's a risk that the company's clients could build their own automated reference checking solutions. That could be a "significant headwind on growth" for the ASX tech share, noted Copley.

There's also a "significant portion" of the company's target market that prefer to do reference checks 'the old-fashioned way'. That could limit the company's potential market, said the analyst.

Finally, because the company effectively charges users per use, its earnings are more susceptible to market cycles.

Recent record staff turnover has been helping it to grow lately.

But, as Copley noted, the job market will likely stabilise at some point. A more stable job market will probably see the company's growth scaling back to more 'normal' levels.

So, is the ASX tech share a buy?

All in all, Copley believes Xref shares are worth looking into.

"Right now, I think that Xref offers an attractive 'risk/reward' proposition for investors," he concluded.

The opinions expressed in this article were as at 16 March 2022 and may change over time.

The post Why Motley Fool analyst Chris Copley is so bullish on this ASX tech share appeared first on The Motley Fool Australia.

At the time of writing, the Xref share price is trading 5% in the red at 57 cents.

Xref share price tanks amid earnings growth

Key takeouts from the reference check company's earnings results today include:

• Gross Sales – a record first half period of upfront sales of $10 million, up 95% from $5.1 million in H1 FY21
• Cash receipts from sales of $10.3 million, up 65% from $6.2 million the same time last year
• Record first-half revenue result of $8.9 million, up 73% from $5.1 million year on year
• Net loss for the half year of $0.03 million – significant 98% reduction from $1.98 million in H1 FY21
• Operating cash surplus of $2.3 million compared to an operating cash deficit of $500,000 last year
• Cash balance of $10.4 million at 31 December 2021, compared to $8.1 million at 30 June 2021.

What happened this period for Xref?

Xref notes that its growth pattern continued throughout the half. It says, traditionally, this period has the lowest sales due to "seasonal fluctuations in the Australian recruitment industry following the financial year-end, and the summer holiday season in the Northern Hemisphere".

Nevertheless, the company achieved record first-half revenue of $8.9 million, an impressive jump of 73% compared to the same period last year.

Throughout the pandemic, Xref says it has also been successful in gradually reducing reliance on its traditional sales team by increasing the digital acquisition of new clients.

"Xref has improved all marketing metrics relating to effectiveness and lead generation with the continual optimisation of channels and marketing investment," the company said.

"Invoice value, client size, initial adoption and sales cycle periods have all improved as we continue to execute our digital marketing strategy and 3,200 leads were captured during H1 FY22 resulting in a 124% increase in lead flow over the same period in the previous year."

As such, the group almost broke even at the bottom line, backed by an operating cash surplus of $2.3 million that was well ahead of a deficit of $500,000 this time last year.

Management commentary

Speaking on the announcement, Xref's CEO and co-founder Lee-Martin Seymour said:

As a marketing led, data-driven organisation, Xref continues to execute a data-driven multi-channel marketing strategy generating an increased number of inbound leads. B2B buyers are becoming increasingly reliant on reviews as a source of truth when considering a sofware purchase. Xref's online brand presence continues to be strong and successful on platforms such as G2, Capterra and Google My Business.

On G2's review platform, Xref repeatedly ranks among the best SaaS [software as a service] in the reference check category, including Top 10 in ANZ. The most recent winter report saw Xref win seven badges for leadership, usability and relationships, ranking number one in usability.

What's on the horizon for Xref?

The company says the staged release of its enhanced platform, including its Xref Pulse Surveys and Xref Marketplace, will continue throughout FY22.

These new services are set to "dramatically increase Xref's global addressable market", according to the company.

"In particular, this strategy is expected to grow Xref's share of the North America market via channel partners, wholesale and self-serve subscription sales."

Xref reckons that geographic expansion will also reduce seasonality in overall usage moving forward. Along with the "growing demand for additional pre-employment survey and checking services via the Xref Platform and connected Marketplace, Xref expects it will be able maintain its achievement of a net profit after tax [NPAT] for FY22 along with cash flow profitability", it concluded.

Xref share price snapshot

In the last 12 months, the Xref share price has surged around 98% but it is down more than 15% this year to date.

During the past month of trading, shares have collapsed 19% and Xref is thus trailing the broad index's return this year.

The post Xref (ASX:XF1) share price slides 5% despite surge in gross sales appeared first on The Motley Fool Australia.

The unemployment rate is hovering around 4%, its lowest point in more than 10 years, and if it reaches below 3%, we could be heading for the lowest levels of unemployment on record.

Australian wages have grown over the past 10-plus years, outpacing the increase in Australian labour costs and the producer price index in that time (as shown below).

But now, with the labour force heading towards full capacity, how will this impact company earnings moving forward? And how can investors navigate the predicted 'jobs boom'? Let's take a look at two potential winners below.

Xref Limited (ASX: XF1)

Having peaked at 52-week highs of 80 cents in January, shares in software-as-a-service player Xref have since corrected to trade at 59 cents apiece.

Xref claims to automate the employment reference checking process, offering a 24-hour turnaround service. According to the author of the Switzer Report, Tony Featherstone, Xref could be a buy for those investors with a longer-term horizon in mind.

"In a January trading update, Xref said sales of $10 million in the first half of FY22 were up 96% on the same period a year earlier," he said.

"That is a good result: the first half of the financial year is usually the weakest for Xref due to financial year-end."

Featherstone notes that Xreft could be one for the long-term.

"My interest is longer-term. I like Xref's technology, platform and business model. It's a globally scalable model that solves an obvious problem for customers," Feathorstone noted.

"The challenge is attracting companies and cross-selling other products so that the platform has higher margins and more 'touchpoints' with customers who find it harder to leave."

CV Check Limited (ASX: CV1)

Another potential 'jobs boom' play, according to Featherstone, is CV Check, the provider of pre-employment screening services for individuals and companies.

The company has expertise in providing a 12-24 hour turnaround on police checks. It recognised  $6.5 million in revenue for the second quarter of FY22 – a gain of 83% on the same period last year.

"Like Xref, CV Check has rising revenue growth, off a low base," Featherstone remarked. "Its products are well placed for this market and it has a reasonably large retail and SME [small to medium enterprise] customer base for its size."

According to Featherstone, the jobs market might be under-appreciating how valuable CV Check's offering is, especially given the digitising of onboarding processes.

"I doubt enough job candidates realise how technology algorithms are cross-checking their CV against published data – and the risks of providing false job information," he added.

However, CV Check has underperformed the market substantially in the last 12 months. It is down 26% this year to date, well behind the major indices.

It is now trading at 11.5 cents per share at the time of writing, having collapsed another 4% during last week's trading.

As for his favourite, Featherstone is crystal clear on which of the two companyies he prefers.

"Of the two stocks, I prefer Xref," he said. "I like emerging software-as-a-service companies that demonstrate they can rapidly scale their opportunity by adding more products and services for global markets."

"It's early days, but Xref is making good progress."

Featherstone believes CV Check hasn't done enough since listing. "Recent signs are promising…[b]ut if resume and reference checkers can't do well in this jobs market, they never will," he added.

The post Expert reveals 2 small-cap ASX shares for the jobs boom appeared first on The Motley Fool Australia.

• The Xref share price hit a 9-year high of 80 cents after the company released a trading update
• The company's sales improved by 96% compared to the previous half
• The All Technology Index is down 5% today

ASX tech shares may be crashing today but one company hit a nine-year high this morning. The Xref Ltd (ASX: XF1) share price is currently up 0.7% at 71.5 cents. However, in intra-day trade, it hit 80 cents, a nine-year high. The last time Xref shares hit more than 80 cents was mid-2012.

For perspective, the S&P/ASX All Technology Index (ASX: XTX) is currently down 5.2%.

This movement in the Xref share price comes after the human resources technology company reported a 96% rise in sales in its latest trading update.

Let's take a look at what the company revealed today.

Xref share price soars on results

The Xref share price soared this morning after the company provided an update for the second quarter and first half of financial year 2022. Highlights included:

• $10 million total sales for the first half of FY22, soaring 96% on previous corresponding half
• $8.2 million total revenue for the first half of FY22, up 68% on the previous corresponding half
• Sales of $4.6 million, up 71% on the previous corresponding quarter
• Revenue of $4.3 million, a 65% gain on the previous corresponding quarter
• Cash receipts of $4.7 million
• Cash surplus of $0.2 million

What else did this ASX tech share report?

Xref revealed it has increased its ability to gain new clients digitally during the COVID-19 pandemic. This has reduced its dependence on traditional sales methods.

The company has also been able to reduce its spend on marketing by 50%.

New clients in the quarter included Fortescue Metals Group Limited (ASX: FMG), Chartered Accountants Australia and New Zealand, The University of the Sunshine Coast, and St Vincent's Health Australia.

Globally, this ASX tech share also attracted clients including English Premier League football club Wolverhampton Wanderers, along with the University of British Columbia, Trulioo, and the Evangelical Lutheran Church in North America.

The company's credit use improved 52%, while RapidID's net revenue soared 363%. RapidID is a technology platform that allows companies to verify the ID of the people they employ.

The net revenue from RapidId improved due to more bulk discounts from third-party vendors.

What did management say?

Commenting on the results and future direction of this ASX tech share, Xref CEO and executive director Lee-Martin Seymour said:

We are starting to see historical Australian seasonal fluctuations reduced by stronger demand in the sector and the growth of both RapidID and our overseas operations.

While only halfway complete, we have already built a strong foundation for FY2022. Both new business demand and current client usage during the holiday season has been unprecedented and suggests that our Q3 and Q4 FY2022 performance will be strong.

In tandem, we are preparing to launch products to grow the marketplace and platform subscriptions. It is a very exciting period in our growth journey.

Xref share price snap shot

The Xref share price has soared 97% in the past year. In the past month, it has gained around 11%, but it has fallen more than 4% in the past week.

Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) has returned 0.74% in the past 12 months. The All Technology Index has fallen by 21% over the same period.

Xref has a market capitalisation of around $131.5 million based on its current share price.

The post ASX tech shares are plummeting today but this one just hit a 9-year high appeared first on The Motley Fool Australia.

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.

The post Xref (ASX:XF1) share price surges 5% on achieving 126% sales growth appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are racing higher:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is up 4.5% to $1.18. Investors have been buying the sales enablement platform provider's shares after it announced a major contract extension. According to the release, US based telco giant T-Mobile has extended its contract by $6.3 million in total contract value over a two-year period. This means the T-Mobile total contract value now stands at $18.4 million since its initial deployment.

Oil Search Ltd (ASX: OSH)

The Oil Search share price is up 4% to $4.05. There have been a couple of catalysts for this rise. One is a jump in oil prices overnight and the other is a broker note out of Morgans. In respect to the latter, the broker has upgraded the energy producer's shares to an add rating with a $4.40 price target. This follows an upgrade to Morgans' medium term oil price forecasts.

Opthea Ltd (ASX: OPT)

The Opthea share price has jumped 9.5% to $1.38. This morning the biotech revealed that it has received Fast Track designation from the US Food and Drug Administration for its product to treat patients with neovascular (wet) age-related macular degeneration (AMD). In addition, Opthea noted that it may also be eligible for accelerated approval and priority review as long as it meets the needed criteria.

Xref Ltd (ASX: XF1)

The Xref share price has stormed 22% higher to 45 cents. This follows the release of the human resources technology company's fourth quarter update. According to the release, Xref expects to report record sales of $6.37 million and cash receipts of $5.93 million for the quarter. Management notes that COVID-19 has accelerated the global demand for remote working. This has led to organisations seeking better ways to perform candidate verification, leading to growing demand for its self-serve platform.

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In morning trade, the human resources technology company's shares jumped 32% to a record high of 49 cents.

The Xref share price has eased slightly since hitting its high but remains up 26% at 46.5 cents currently.

Why is the Xref share price rocketing higher?

Investors have been bidding the Xref share price higher today following the release of a strong fourth quarter update.

According to the release, Xref expects to report record sales of $6.37 million and cash receipts of $5.93 million for the quarter.

A key driver of this growth was the introduction of several big-name customers during the period. This includes the RACV, NIB Holdings Limited (ASX: NHF), and Prospa Group Ltd (ASX: PGL) in Australia. Outside Australia, the company added the New Zealand Ministry of Health, Brighton FC, Ferrovial Construction, and Eurofins Scientific.

Management notes that COVID-19 has accelerated the global demand for remote working. This has led to organisations seeking better ways to perform candidate verification, leading to growing demand for its self-serve platform.

Another positive which is likely to be giving the Xref share price a boost today, is that the company was cash flow positive during the fourth quarter. Management notes that its operating cash outflows were $3.43 million, compared to cash receipts of $5.93 million. This meant an operating cash surplus of $2.5 million.

As a result of this, the company ended the period with a cash at bank of $8.19 million. This is up from $2.94 million a year earlier.

Management commentary

Xref's Executive Director and CEO, Lee-Martin Seymour, said: "The extreme unpredictability of market conditions in FY21 meant it was one of our most challenging financial years to date. However, we are proud of the many strategic decisions we made which resulted in us emerging from the pressures of the pandemic in our strongest position to date."

"Over recent years we have focussed on building Xref's online brand presence, third party ratings and self-serve products. This digital-first approach has been vital to our growth in 2021 as global employers search online for better ways to verify and measure talent. Our results not only reflect the critical nature and demand for the Xref platform but demonstrate the brilliance and professionalism of the Xref team. The year ahead will bring new products, sustained profitability and continued growth. We are all very excited to discover what FY22 will hold."

The Xref share price is up over 150% since this time last year.

The post Why the Xref (ASX:XF1) share price is rocketing 32% to a record high appeared first on The Motley Fool Australia.

The Xref share price has risen 16% today to 29 cents per share.

Xref is a human resources technology company that automates the candidate reference process for employers. Essentially, it provides a data-driven analytics process that replaces the human, phone-call references that most people are familiar with.

It gathers data on the employee, the company and the role and then uses this to provide a report to hiring directors, letting them know whether the employee is suitable for the role they're advertising.

It derives most of its revenue from Australia but also has a presence in Canada, the United Kingdom, Norway, New Zealand, and the United States.

Xref third-quarter update results

Xref released its third-quarter update today, showing revenue has increased 36% to $3 million, and sales have increased by 62% to $4 million. Meanwhile, its cash expenses have decreased by 17% to $3.5 million, and its cash balance has increased to $6.4 million.

New clients acquired in the quarter contributed 13% of total sales. Xref has built a strong customer base in the healthcare industry and has now entered a new geographic market in South Africa. Its new clients in Australia include the Australian Prudential Regulation Authority (APRA̼̩),  Cash Converters, and the Children's Cancer Institute.

Its expanding profile of blue-chip clients outside the healthcare industry is partly behind the strong Xref share price performance.

Xref has simultaneously scaled back event and travel̩ development costs and office leases and has reduced its headcount from 18 to 64 people. This has driven a material reduction in cash expenses while continuing to support growth in sales.

The Australian company is also aiming to transition its credit-based cloud-based platform service to an annual recurring revenue (ARR) subscription model.

Xref share price snapshot

The Xref share price has risen 18% this week, 23% this month and 163% over the past year, but is down 20% overall in 2021 so far. It's beaten the ASX technology sector by 69%.

The post The Xref (ASX:XF1) share price is surging 16% today. Here's why appeared first on The Motley Fool Australia.