LiveHire achieves record quarter, collars major contract with SERCO Australia
LiveHire’s SERCO Australia contract is estimated to be worth $500,000 over three years.
Following a record March 2022 quarter (Q3 FY2022), global software as a service (SaaS) developer LiveHire (ASX: LVH) has collared a contract with SERCO Australia.
LiveHire’s SaaS platform connects companies to job seekers and the new contract will involve providing recruitment services to SERCO for three years.
This contract is expected to bring in about $500,000 in revenue over the three years and includes integration with LiveHire’s SAP SuccessFactors.
SAP SuccessFactors is an integrated solution with SAP Fieldglass that was launched in Q3 FY2022.
SAP Fieldglass is the largest cloud-based open vendor management system that helps organisations find, engage, manage and pay employees.
SERCO Australia is a subsidiary of UK-listed SERCO Group, which partners with governments and provides public services throughout the UK, Europe, North America, the Asia Pacific and Middle East.
Throughout these regions, SERCO operates across defence, justice, immigration, transport, health and citizen services.
LiveHire technology
LiveHire describes its SaaS solution as an “award winning candidate experience”. The technology enables clients to attract and engage employees – providing them with “talent-on-demand” through a unique pooling and two-way text messaging functionality.
To-date, LiveHire’s technology has enabled end-to-end recruiting for more than 150 clients across 20 verticals worldwide.
For clients, LiveHire sources both contingent employees (temporary workers) and permanent employees (contract reflecting continuity of employment and entitlements).
In contingent hiring, LiveHire says its solutions can reduce costs and ensure the process is faster with better workers sourced.
Using Vodafone as its client example in the permanent space, LiveHire reduced the hire time from 25 days to seven.
LiveHire’s artificial intelligence increased recruiter efficiency – shrinking potential candidates from 50 to three.
The company says its solution reduced the hire cost for Vodafone from $5,800 to $2,500.
North American market
During the March quarter, LiveHire continued its growth trajectory across multiple regions, particularly in contingent hiring within the North American market.
In the contingent hiring field, LiveHire onboarded seven new clients – closing the period with 30 clients throughout North America after losing one.
This represented estimated an annual contract value of $9 million. Meanwhile, contingent hiring revenues increased 12% to $446,000 compared to Q3 FY2021.
LiveHire noted it was on track to grow its clients in North America to 36 by the end of FY2022.
Additionally, LiveHire’s pipeline is expanding in this area with 133 client opportunities – up from 93 in the December quarter.
In this region and field, LiveHire’s strategy is to go to market with partners, which have a strong financial incentive to introduce and sell its solutions to clients.
Asia Pacific performance
Over in the Asia Pacific region, in the permanent hire field, LiveHire added 14 new clients (lost five) during Q3 – to end the quarter with 162 clients.
As a result, closing annualised recurring revenue was $5 million, which was 5% higher on the December quarter and up 30% on the Q3 FY2021.
The net rolling retention rate in this space was 99% for Q3 FY2022, which was a 16% year-on-year increase.
Record March quarter
Across the business, LiveHire reported record cash receipts of $2.5 million in Q3 FY2022. This was a 64% rise on Q3 FY2021’s figure of $1.55 million.
LiveHire closed out Q3 FY2022 with $9.3 million in cash, which will be used to accelerate its expansion in the North American market.
The US market for contingent hiring solutions is estimated at US$80 billion.