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HR platform AD1 strikes multi-year deal with the Victorian government, shares rally
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Recruitment platform AD1 Holdings (ASX:AD1) was a big winner in morning trade, after announcing a deal extension with the Victorian government.
The company said it would now run hosting and maintenance services for the government’s careers website for an additional three years, to 30 June 2023.
It follows a two-year deal extension with the NSW government for its iworkforNSW careers platform, announced at the end of June.
CEO Prashant Chandra said this morning’s deal meant AD1 now had 97 per cent of its employment platform subscription revenue locked in on multi-year contracts.
Shares in AD1 briefly tripled at the opening bell, before easing back slightly.
The latest deal also provides the basis for a pipeline of future work with the Victorian government, including the integration of the Careers.Vic platform with the VIC Jobs API Gateway that is currently in development.
Chandra said the agreements with both state governments were evidence of the company’s ability to provide a “more cost efficient and effective way for the country’s two largest employers to connect with jobseekers”.
He added the company was also in late-stage discussions to “secure new contracts across both its career-platform and utilities software products”.
In other ASX tech news today:
The buy now, pay later (BNPL) boom continues apace as shares in US-based fintech Sezzle (ASX:SZL) rose sharply off the back of a June quarter trading update. The company said underlying merchant sales rose $272.3m, a quarterly gain of 58 per cent, while active consumers climbed to 1.48 million, up 28 per cent.
Larger competitor Afterpay (ASX:APT) announced underlying quarterly sales of $3.8bn, and went into a trading halt after flagging a $1bn equity raising which will see co-founders Nick Molnar and Anthony Eisen sell down $250m worth of stock.
Sports gaming app SportsHero (ASX:SHO) also ticked higher in morning trade, after announcing the launch of Olahbola in Indonesia, its localised football app providing coverage of major global competitions such as the English Premier League to Indonesian consumers.
SportsHero, which has a market cap of less than $6m, said the Olahbola product would be the “first locally branded and fully localised football app covering international football for the Indonesian market”.
