LiveHire surges more than 30% on award of North American contract

By Trevor Hoey. Published at Apr 28, 2020, in Technology

It was less than a month ago that Finfeed drew your attention to LiveHire Ltd (ASX: LVH), a talent acquisition and engagement platform that delivers a proactive sourcing and talent mobility solution called Live Talent Communities.

On Tuesday, the company announced that it had won a lucrative contract in North America, prompting a significant share price rally.

The platform makes managing the flow of talent into and through businesses seamless, delivering value through detailed visibility of talent, shifting recruitment from reactive to proactive, significantly reducing time and cost to hire.

Such was the attractiveness of the group’s business offering that it won a contract with the Queensland state government to use its talent acquisition and engagement platform to assist in identifying and mobilising staff during the peak of the Covid-19 crisis.

LiveHire was chosen to serve the 48 Queensland government agencies by profiling staff and identifying those qualified to move into critical roles, more specifically redeploying over 15,000 public-sector employees.

With the contract equating to about six times the group’s average annual recurring revenue, it wasn’t surprising to see a significant share price increase with the company’s shares increasing from the previous day’s close of 8.3 cents to 11.5 cents.

However, as we pointed out at that stage, the company seemed substantially undervalued as it was debt-free with cash of $26.9 million, broadly in line with its market capitalisation at that time.

Contract equivalent to more than 15% of fiscal 2019 revenues

LiveHire has just won its latest direct sourcing contract in North America, a lucrative development and one which opens the door for additional business.

The contract value is estimated at $400,000 annual revenue with the opportunity to expand as the client extends the solution further.

To put this in perspective, LiveHire’s full-year revenues in fiscal 2019 were in the vicinity of $2.5 million, indicating this is a highly material win for the company.

The direct sourcing contract will initially add more than 500,000 candidate profiles to the LiveHire ecosystem in North America.

The direct sourcing market is a recent and rapid evolution in the contingent workforce management market (US$130 billion) that is typically managed through procurement and involves the build of talent clouds of contractor talent that can be directly sourced and hired.

This model helps in reducing the salary mark-up that organisations typically pay to staffing suppliers, providing significant savings in the total contractor program spend.

Consequently, the value-add offering provided by LiveHire is likely to continue to attract interest, providing strong revenue growth in 2020.

While the company’s shares surged to a high of 35 cents on Tuesday morning, they are still trading well shy of the 12 month high of 53 cents and the consensus price target of 57 cents, suggesting there is scope for further upside.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!