HR SaaS developer LiveHire achieves strong full-year performance
LiveHire closed out FY2022 with $7.3 million in the bank.
Human resources software as a service (SaaS) developer LiveHire (ASX: LVH) has achieved a strong year of growth by meeting all key business drivers in FY2022, and notably winning a key partnership with Manpower Group (NYSE: MAN).
As a result of LiveHire’s continued growth during the period, it was recognised as one of Australia and New Zealand’s most innovative companies in the prestigious Australian Financial Review-BOSS awards.
LiveHire chief executive officer Christy Forest said winning the key partnership with Manpower had set the company up for future success.
“A watershed partnership in direct sourcing, record results in APAC, and our world‐class global security certifications combine for momentum and strength going into FY2023,” she said.
LiveHire closed FY2022 with 26 direct sourcing partners, 30 direct sourcing clients and 147 client opportunities.
The Australia-based company reported a net revenue retention of 97% in Australia and New Zealand.
Closing annual recurring revenue (ARR) for its SaaS was up 31% year-on-year, while total revenue from ordinary activities was 32% year-on-year – increasing to $7.3 million.
Through continued investment across North America’s direct sourcing market and in global security certifications, LiveHire’s operating cash burn of $7 million was in line with the previous year.
LiveHire chairman Michael Rennie said the efforts of the company paid off, evident through the goals achieved in FY2022.
“We are excited to see all the hard work is paying off and that we are now so very well positioned in the fast emerging and very large contingent staffing market,” he said.
Direct sourcing in the US
LiveHire’s year was highlighted by winning a master service agreement (MSA) with Manpower managed service provider division, TAPFIN, in June 2022 for direct sourcing.
The “watershed moment” for the company positioned the brand as a market leader within the industry.
TAPFIN is one of the four largest global managed service providers, and has chosen to roll out direct sourcing with LiveHire as its preferred technology.
TAPFIN manages more than US$20 billion in contingent spend across 103 countries globally.
TAPFIN global leader talent solutions Amy Doyle said the partnership was a step in the right direction for both brands.
“The strategic MSA with LiveHire allows TAPFIN to provide a world class direct sourcing solution to our clients and the market overall,” she said.
“Direct sourcing and our partnership with LiveHire is central to our mission to bring innovation and impact to our clients.”
The demand for direct sourcing has come about as 82% of companies in North America reported an increased need for contingent workers, with the US contingent workforce also growing 56% larger than pre-pandemic times.
TAPFIN, QuantumWork and Atrium are amongst the new North American partners LiveHire welcomed in FY2022.
Asia-Pacific permanent hiring SaaS
In the Asia-Pacific region, LiveHire welcomed ViVENTiS, Serco and Endeavour Group as new clients in FY2022.
The company’s subscription clients also reached a total of 174 in FY2022.
It is reported that 69% of employers struggle to fill positions, with talent shortages in the US having more than tripled in a decade, with the figure sitting at just 14% back in 2010.
Strong financial performance across the board
LiveHire capped off FY2022 with $7.3 million in the bank.
The company’s closing ARR was up 31% from FY2021 to $5.7 million, with its direct sourcing business contributing $2 million in FY2022.
LiveHire says the strong balance sheet and cash position will position it to enjoy future growth.