LIVEHIRE LIMITED onlyLiveHire (ASX:LVH) Quarterly Activities Report:
useQ4 2022
ersonal20 July 2022
Empowering the flow of the world's talent
LiveHire: Q4 22 Highlights
LiveHire Contingent Hiring (Direct Sourcing) continues to deliver growth in North America with pipeline expanding: ✓ Direct Sourcing added 6 new clients and 3 new partners, both delivering to plan.
✓ Pipeline continues to grow in size and quality - 147 client opportunities live, up from 133 last quarter; 12 of these at proposal stage. only✓ Underlying non-COVID role revenues are up 30% on previous quarter.
✓ LiveHire signs a strategic partnership with ManpowerGroup Talent Solutions, TAPFIN division (NYSE: MAN). TAPFIN will offer
✓
useLiveHire Permanent Hiring (SaaS) delivers record quarter and $5.7m in ARR: ✓ Closing ARR for Q4 22 $5.7m up 10% on Q3 22, and up 31% YOY.
✓ Client revenue retention continues to exceed plan with NRR rate % (rolling 12mths) at 97%, 6% points higher than Q4 21.
✓ Net gain for the quarter of 10 (added 15 new clients, 5 losses in quarter) taking total to 174 clients. ersonal✓ 83 client opportunities live, up from 72 last quarter; 17 of these at proposal stage.
Financial indicators are tracking to plan and enabling investment in North America, with cash receipts of $1.7m for the quarter (lower to previous quarter due to timing of select group of upfront SaaS payments). Closing cash balance of $7.3m.
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TAPFIN strategic partnership is a watershed for the direct sourcing movement and LiveHire's market position
TAPFIN, a division of ManpowerGroup Talent Solutions LLC, is one of the four largest Managed Service Providers globally.
TAPFIN manages more than USD20B in contingent spend across 103 countries globally. LiveHire signed a Master Services Agreement (MSA) to be the preferred technology partner for TAPFIN, following a competitive process to bring a world-class direct sourcing solution to the TAPFIN client base.
TAPFIN and LiveHire are working closely together on several immediate and near term opportunities.
TAPFIN is in advanced negotiations with a number of its clients to integrate LiveHire's technology solution, including a Fortune 100 global sports manufacturer and retailer. LiveHire technology has cleared the prospective client's security and compliance reviews, and is now advancing through the scoping stage with the prospective client and the TAPFIN teams in the US. There is no guarantee that these negotiations will result a binding contract for LiveHiire's solution.
The company will update the market in accordance with its continuous disclosure obligations.
"The strategic MSA with LiveHire allows TAPFIN to provide a world class direct sourcing solution to our clients and the market overall. TAPFIN is a proven
partner to our 200+ global clients
and will lead the way with a solution that increases their competitiveness in the labor market and delivers real
business outcomes. Direct sourcing and our partnership with LiveHire is central to our mission to bring innovation and impact to our clients."
Amy Doyle
Global Leader Talent Solutions, TAPFIN
North America continues to drive momentum in strong client growth
North American | 6 new clients for the quarter, consistent with Q3: | ||||||||
Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 | YOY | ||||
Performance | |||||||||
Contingent Hiring | ✓ Added 6 new clients during the quarter (361 in total) and | ||||||||
only | (Direct Sourcing) | ||||||||
Closing Partners | 14 | 17 | 20 | 23 | 26 | 86% | 3 new partners (26 in total), delivering to plan. | ||
Closing Clients | 2 | 2 | 2 | 2 | 2 | 0% | |||
Closing Clients 1 | 14 | 18 | 24 | 30 | 36 | 157% | ✓ One off COVID roles have come off as expected, | ||
Revenue ($m) (Transactional) | $0.687 | $0.579 | $0.543 | $0.446 | $0.448 | (35%) | reflected in overall revenue decrease of 35% YOY, but | ||
Permanent Hiring (SaaS) | |||||||||
underlying business growing significantly up 144% YOY | |||||||||
(Underlying revenues Q4 22 $0.328m v Q4 21 $0.134m). | |||||||||
Closing ARR ($m) | $0.208 | $0.208 | $0.208 | $0.208 | $0.208 | 0% | |||
(Annualised) | |||||||||
NRR rate % (Rolling 12mths) | 100% | 100% | 100% | 100% | 100% | 0% | Note: we are also reflecting permanent hiring (SaaS) | ||
clients who are located in North America as part of our | |||||||||
ersonaluse | |||||||||
region reporting. | |||||||||
1 Closing clients excludes the impact of Non ICP clients as per following slide,
Note: None of the information included in this presentation should be considered individually material, unless specifically stated. All figures in this announcement are provided on an | 4 |
unaudited basis. All references to dollar amounts or figures is in Australian currency unless stated otherwise. |
Review of Ideal Client Profile (ICP) and EACV looking forward
North American | Q3 21 | Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 |
Performance | ||||||
Rebalancing effort for long term return:
only | Contingent Hiring | ✓ LVH assessment of existing clients shows cluster of Non | |||||||
(Direct Sourcing) | |||||||||
ICP clients sold through a particular partner who has not | |||||||||
Opening Clients | 8 | 9 | 14 | 18 | 24 | 30 | |||
committed to business outcomes. | |||||||||
New Clients | 4 | 1 | 6 | 7 | 6 | ||||
New Clients (Non ICP)^ | 1 | 2 | 3 | ✓ These non ICP sales in Q3 21 (1), Q4 21 (2) and Q1 22 (3) | |||||
Less: Non ICP clients | (1) | (1) | (6) | ||||||
will be generate immaterial revenues and LVH has | |||||||||
Closing Clients | 9 | 14 | 18 | 24 | 30 | 30 | |||
rebalanced efforts toward successful ramp of other deals | |||||||||
and the growing pipeline of large, well-fitted deals. | |||||||||
use | |||||||||
✓ Insights from partners and clients means we now view | |||||||||
^ Non ICP clients are still contracted but LVH is not investing any further time or | |||||||||
resources into them as they will not produce material revenues. | client EACV as 4 types based on different program size. | ||||||||
ersonal | Based on this we have revised our weighted average EACV | ||||||||
for existing clients to date from $300k to approx $215k. | |||||||||
✓ Resulting in closing clients of 30 with aggregate EACV1 of | |||||||||
$6.4m. |
1 EACV - Estimated Annual Contract Value based on weighted average of management's estimate (refer to glossary for calculation) per client at full ramp, LiveHire expects to take 18-24mths to ramp to this rate of use. Note ramping may vary due to forex rates.
Note: None of the information included in this presentation should be considered individually material, unless specifically stated. All figures in this announcement are provided on an | 5 |
unaudited basis. All references to dollar amounts or figures is in Australian currency unless stated otherwise. |
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LiveHire Ltd. published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 22:53:05 UTC.
