Why the Limeade (ASX:LME) share price is on watch

The Limeade Inc (ASX: LME) share price is one to watch after the employee software solutions group provided its latest quarterly update.
The post Why the Limeade (ASX:LME) share price is on watch appeared first on The Motley Fool Australia. –

ASX share price on watch represented by man looking through magnifying glass

The Limeade Inc (ASX: LME) share price is on watch after an early morning announcement from the US-based software company.

Why is the Limeade share price on watch?

Limeade is a Bellevue, Washington USA based employee software solutions group that currently boasts a $204.9 million market capitalisation on the ASX.

The Limeade share price will be one to watch after the software group’s latest quarterly update for the period ended 31 March 2021 (Q1 2021). Limeade said “pent up demand” remains for employee experience (EX) software following the coronavirus pandemic.

Limeade reported quarterly cash receipts from customers of $23.6 million – a record result for the growing company. Net cash receipts after adjusting for payments to the sale of third-party products and services was down 8% in Q1 2020 to $17.1 million.

Third-party payments were down 6% in Q1 2020 to $6.4 million. However, that figure remains a 177% increase over December quarter figures posted by Limeade.

Limeade said headcount continued to track at a lower rate than prospectus forecasts due to efficiencies and a hiring reduction due to uncertainty during the COVID-19 pandemic.

The Limeade share price will be one to watch this morning with the company’s valuation already falling 46.8% in 2021

Limeade reported a quarterly operating cash flow of $0.6 million, down 69% on Q1 2020 numbers. Overall year to date Net Revenue Retention was 98% as of 31 March 2021 according to the release.

On the balance sheet side, Limeade reported a $31.3 million cash balance while remaining debt-free during the quarter. One notable update for the quarter was the company reporting strong attendance for its fifth annual Limeade Engage conference. 

The conference was virtually held due to COVID-19 and attracted 275% more registrations compared to 2020. New customer prospects jumped 268% on the prior corresponding period to 545 registrants.

Limeade’s total sales and marketing pipeline fell 19% versus Q4 2020 to $182.4 million as early stage qualifying leads declined.

FY2021 guidance

The Limeade share price is one to watch this morning after an update on guidance from the software solutions group. Limeade has maintained full-year guidance of US$50 million to US$53 million revenue with forecast earnings before interest, tax, depreciation and amortisation (EBITDA) loss of US$5 million to US$8 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Limeade, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Limeade (ASX:LME) share price is on watch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!