Xref confirms global recruitment platform capability and eyes further growth as revenue surges again
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The company is now positioned to significantly expand its addressable market in the years ahead.
As a leading platform in HR technology, Xref (ASX:XF1) has been ideally positioned for the post-Covid economic rebound as global employment numbers rip higher.
And accompanying its April results this morning, the company’s latest investor presentation highlighted the strength of its market position, as it builds toward record revenue growth in FY21.
Revenue in April alone came in at $1.2m – almost double the same time last year – while total credit sales rose by 88 per cent to $1.6m.
That follows on from a strong Q1 result to start the year, leaving Xref on track to book annual revenues of more than $12m — a gain of more than 50 per cent from the prior year.
And with its renewed focus on costs in the wake of the pandemic, the Xref management team is about to deliver on one of its key operational objectives with the company now set to achieve cash flow break-even by the end of the June quarter.
Underpinning that growth is the emergence of a business model that reflects Xref’s integrated global platform strategy, led by its core reference-checking automation process for employee candidates.
The company derives around two-thirds of its revenue from the automated reference checking platform, including client leads generated from its rapid onboarding model Xref Lite.
In addition, it now generates over 15 per cent of total revenues from ATS (Applicant Tracking System) integrations, where one of 35 global ATS partners access Xref’s platform as part of their own recruitment services.
Growth in the ATS channel demonstrates Xref’s ability to build global scale and operate as a platform of choice for industry partners to utilise its market-leading employee reference check service.
In line with that strategy, the company has booked a 260 per cent increase in lead generation compared to last year through both direct and referral marketing channels.
Converted sales from new leads is up by 62 per cent while overall user adoption has climbed by 36 per cent. And Xref now boasts a global client base including customers such as Zoom, DHL, KPMG, Crown Resorts, Airbus and McDonald’s.
Commenting on the results, Xref CEO Lee-Martin Seymour said the company is now at the cutting edge of changes taking place in the global recruitment sector.
“We are working with some of the world’s largest and well-known brands to craft products that will provide insights never seen before,” Seymour said.
“Above all, Xref is a product innovator and our commitment to bringing fresh thinking to our global clients comes at a time when they are listening and we are in demand.”
And with its platform model now established, Xref is ready to capitalise by expanding its addressable market and drive a fundamental re-rating in further growth opportunities.
“Extending the Xref platform across the full hire-to-retire journey increases the addressable market exponentially and allows organisations to enjoy the benefits of Xref across their business,” the company said.
This article was developed in collaboration with Xref, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.