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intelliHR (ASX:IHR) share price surges 8% on rapid expansion

The intelliHR share price has shot up today after the HR technology company reported significant growth in the US in the first half FY21.
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The Intellihr Ltd (ASX: IHR) share price is up 8% today, after the human resources (HR) technology company announced 2 positive updates. The company reported significant new business growth in the United States in the first half of FY21, and its first contract win in the United Kingdom.

At the time of writing, the intelliHR share price is trading up 8.33% at 26 cents, a retreat from its intraday high earlier when it was up 17% at 28 cents.

What else did intelliHR say today

intelliHR says major customer acquisitions in the US have contributed to 50% of its subscriber growth in the first half.

The company pointed to the acquisition of a leading sales solutions provider OSL Retail Services as especially significant. That account has provided intelliHR with a 2- year contract with a minimum commitment of $335,000. Further subscriber growth and upgrade to premium plans are expected. 

Subscriber numbers on its platform have increased 148% year-on-year, and doubled in first 5 months of FY21 with a total of 28,779 subscribers.

As a result, the company’s contractual annual recurring revenue (ARR) increased to $2.8 million, which it expects to grow even further in this half. This represents a new record ARR acquisition for the company, which is up 159% year-on-year from H1 FY20.

Commenting on the achievements, intelliHR managing director Rob Bromage said:

intelliHR has always been built to be a global HR platform, and our ambition from the outset was to build a global business. It is tremendous validation of our team’s commitment to this vision that approximately 40% of our subscribers are now located outside Australia, and that 4 enterprise customers from across the globe have been added in the last 6 months alone.

A brief take on intelliHR

intelliHR is a software-as-a-service (SaaS) provider that develops and sells cloud-based HR management software. The company has active users in Australia, New Zealand, Europe, North America, Asia and Africa.

Its clients include Scope Australia, Emerge Aotearoa, Penske Australia and New Zealand, along with other longer-term enterprise accounts including My Health, Contact Energy, and DBM Vircom.

On 6 August, the intelliHR share price shot up by 170% after the company announced its subscriber base had increased by 92% year-on-year. In addition, the number of its enterprise customers had increased by 162% to 153. 

The company also announced that day it intended to raise $5.5 million through a strategic placement and rights issue to support the rapid expansion in its business. $2.5 million of that placement was scooped up by famed technology investor Bevan Slattery. 

How has the intelliHR share price performed in 2020

The intelliHR share price has almost tripled in value in 2020. It started the year at 9 cents, and reached its year-high of 32 cents in August. The company first listed on the ASX in 2018 at 30 cents a share, and currently commands a market cap of $72 million.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post intelliHR (ASX:IHR) share price surges 8% on rapid expansion appeared first on Motley Fool Australia.

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