The ELMO Software (ASX:ELO) share price jumped 47 cents or 7.73% higher to $6.55 in morning trade on Wednesday after the cloud-based payroll and rostering company reported a record level of annual cash receipts of $57.5m through FY20, up 27.4% on FY19.
The company reported a closing cash balance of $139.9m with no debt at 30 June 2020, saying it remains well capitalised to continue investing in organic growth and execute strategic acquisitions.
In June ELMO raised $70m via an institutional placement at an offer price of $7.00 per share. The proceeds were to be used to accelerate organic growth initiatives and to fund
ELMO shares have subsequently fallen below the placement price despite the company recently updating its annual recurring revenue (ARR) guidance and upgrading its earnings guidance, albeit saying it expected EBITDA to be between negative $2.5m and negative $4.5m.
In June, ELMO was admitted to the ASX 300 index.
ELMO Software CEO, Danny Lessem said the company’s focus remains on delivering organic growth supplemented with strategic acquisitions, continuing its growth trajectory into FY21 and beyond. He said the company is “well placed to benefit from the acceleration in the adoption of cloud-based business tools, including HR technology.”
ELMO advised that it will release its FY20 full year results pre-market open on 6 August 2020.
Established in 2002, ELMO is a cloud-based HR & Payroll software provider. The Company offers customers a unified platform to streamline processes for HR, and also manage payroll and rostering / time & attendance. ELMO operates on a Software as a Service (“SaaS”) business model based on recurrent subscription revenues.
Disclaimer: Author Bruce Jackson has an interest in ELMO shares.