Human resources technology firm IntelliHR Holdings Limited (ASX: IHR) has signed a milestone 50th customer to its people management software platform.
The new contract has boosted the company’s total customer base to almost 7,000 paying users for an annual recurring revenue nearing $1 million.
It represents a 16% increase on signed contracts held at December, and a 143% increase on figures from March 2018.
Managing director Robert Bromage said the achievement occurred on the back of a targeted direct marketing approach and significant investment into building and leveraging a scalable sales organisation.
“We are actively pursuing relationships within Australia and abroad for potential integrations which may support new customer lead generation opportunities,” he said.
“We have a very detailed business strategy [and] a focus to expand integration and partnership sales channels which we expect will add weight to our sales results this year.”
Adding multiple large customers to the intelliHR platform has resulted in a substantial uplift in the company’s annual recurring revenue over the quarter to date, with a 54% increase since December to $952,013.
The company also recently signed its 21st partnership contract to help expand the reach of the intelliHR platform.
intelliHR is developing an analytics first global software platform designed to automate the capture of real-time people and performance data, thereby replacing manual processes.
The company’s business model is based on generating income from ongoing subscription fees and once-off professional services fees.
It maintains a “customer for life” strategy with an all-in-one pricing model enhancing customer stickiness by allowing for the utilisation of multiple features on the intelliHR product set.
Fees are charged for implementation services, training and process redesign consulting workshops.
Services delivered as part of the implementation are amortised over the life of a customer contract in line with revenue recognition accounting standards.
Mr Bromage said the company’s professional services fees are expected to grow over the coming year to contribute 40% of intelliHR’s revenue.
At midday, shares in intelliHR Holdings were trading 25% higher at $0.15.