LiveHire Achieves Record Quarter and Signs Major Contract with SERCO Australia
After a record quarter in March 2022 (Q3 FY2022), global software-as-a-service (SaaS) developer LiveHire (ASX: LVH) entered into a contract with SERCO Australia.
LiveHire’s SaaS platform connects businesses with job seekers and the new contract will involve providing recruiting services to SERCO for three years.
This deal is expected to bring in approximately $500,000 in revenue over three years and includes integration with LiveHire’s SAP SuccessFactors.
SAP SuccessFactors is an integrated solution with SAP Fieldglass that launched in the third quarter of fiscal year 2022.
SAP Fieldglass is the largest open, cloud-based vendor management system that helps organizations find, hire, manage and pay employees.
SERCO Australia is a subsidiary of the UK-listed SERCO Group, which partners with governments and provides public services in the UK, Europe, North America, Asia Pacific and the Middle East.
In these regions, SERCO operates in the areas of defence, justice, immigration, transportation, health and citizen services.
Live Hire Technology
LiveHire describes its SaaS solution as an “award-winning candidate experience.” The technology enables customers to attract and engage employees, providing them with “on-demand talent” through unique pooling functionality and two-way text messaging.
To date, LiveHire’s technology has enabled end-to-end recruiting for over 150 clients in 20 verticals around the world.
For clients, LiveHire seeks both casual employees (temporary workers) and permanent employees (contract reflecting continuity of employment and rights).
When it comes to contingent hiring, LiveHire says its solutions can cut costs and ensure the process is faster with better workers recruited.
Using Vodafone as an example customer in the permanent space, LiveHire reduced the rental time from 25 days to seven.
LiveHire’s artificial intelligence has increased recruiter efficiency by reducing potential candidates from 50 to three.
The company says its solution reduced Vodafone’s rental cost from $5,800 to $2,500.
North American market
During the March quarter, LiveHire continued its growth trajectory in multiple regions, particularly in contingent hires in the North American market.
In casual hiring, LiveHire onboarded seven new customers – closing the period with 30 customers across North America after losing one.
This represented an estimated annual contract value of $9 million. Meanwhile, contingent hire revenue increased 12% to $446,000 from the third quarter of fiscal 2021.
LiveHire noted that it is on track to increase the number of its customers in North America to 36 by the end of fiscal year 2022.
Additionally, LiveHire’s pipeline is growing in this area with 133 customer opportunities – up from 93 in the December quarter.
In this region and domain, LiveHire’s strategy is to go to market with partners, who have a strong financial incentive to introduce and sell its solutions to customers.
Performance in Asia-Pacific
In the Asia-Pacific region, in the area of permanent hiring, LiveHire added 14 new customers (five lost) during the third quarter – to end the quarter with 162 customers.
As a result, closing annualized recurring revenue was $5 million, 5% higher than the December quarter and 30% higher than the third quarter of fiscal 2021.
The net rolling retention rate in this space was 99% for the third quarter of fiscal 2022, a 16% year-over-year increase.
Record March quarter
Across the business, LiveHire reported record cash inflows of $2.5 million in the third quarter of fiscal 2022. This is a 64% increase from 1 $.55 million from the third quarter of fiscal 2021.
LiveHire closed the third quarter of fiscal 2022 with $9.3 million in cash, which will be used to accelerate its expansion into the North American market.
The US market for contingent hiring solutions is estimated at US$80 billion.