North America drives momentum in client growth for LiveHire

LiveHire ASX LVH SaaS record quarter annual recurring revenue recruitment software as a service
LiveHire’s SaaS division delivered a record quarter with $5.7 million in annual recurring revenue.

Recruitment software as a service (SaaS) developer LiveHire (ASX: LVH) is continuing to deliver growth in North America with the addition of six new clients and three new partners during the last quarter.

In the company’s latest quarterly results, it said its Contingent Hiring (direct sourcing) pipeline continues to expand in the region with 147 client opportunities live compared to 133 in the March quarter, and 12 of these at proposal stage.

LiveHire also revealed its Permanent Hiring (SaaS) division has delivered a record quarter bringing in $5.7 million in annual recurring revenue (ARR). This represents a 10% increase on the March quarter and 31% rise year-on-year.

The company noted that one-off COVID-19 roles came off as expected, reflecting an overall revenue decrease of 35% year-on-year; however, underlying business grew significantly up 144% year-on-year ($328,000 compared to $134,000 in the 2021 fourth quarter).

Meanwhile, underlying non-COVID-19 role revenues are up 30% on the previous quarter.

LiveHire achieved a net gain for the quarter of 10 clients under its Permanent Hiring division, adding 15 new clients but losing five, bringing its total clientele at the end of the quarter to 172.

The company reported 83 client opportunities live, up from 72 at the end of March, with 17 at proposal stage.

Some of the company’s new SaaS clients include online retailer, recruitment agency Troocoo, construction company GrowthBuilt, software consultancy Data ReFactory, and organisations including Aboriginal Housing Victoria, Carers NSW, Access Telehealth and the Brisbane City Council.

Solid cash position

LiveHire confirmed cash receipts of $1.7 million for the quarter, which was lower than the previous period due to the timing of a select group of upfront SaaS payments received after the end of the June reporting period.

During the quarter, the company received a research and development refund of $800,000 for the 2021 financial year and said it expects to lodge a claim for FY2022 later this calendar year.

LiveHire closed the quarter with a cash balance of $7.3 million which it called a “solid” cash position enabling continued investment into the North American market.

Strategic partnership with TAPFIN

Near the end of the quarter, the company signed a strategic partnership with ManpowerGroup Talent Solutions’ TAPFIN division to offer a direct sourcing solution to the managed service provider’s clients in North America.

The agreement also includes scope for LiveHire’s solution to be offered to TAPFIN’s clients across Europe, the United Kingdom and the Asia Pacific.

According to LiveHire, TAPFIN is in advanced negotiations with several of its clients to integrate LiveHire’s technology, including a Fortune 100 global sports manufacturer and retailer.

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