- ELMO Software (ELO) has announced it’s reinstating its annual recurring revenue guidance for the year to between $55 million and $57 million
- The company offers HR services such as rostering services, time and attendance solutions, and a host of other corporate software services
- Despite the reinstatement of the ARR forecast, the company’s revenue guidance remains unchanged at between $50 million and $52 million for the financial year
- The solid financial position has come on the back of a $70 million placement ELMO executed in mid-May
- In the same announcement, ELMO also said its negative earnings before interest, tax, depreciation and amortisation had lessened, moving from between $4 million and $6 million to between $2.5 million and $4.5 million
- The company has also announced it is sitting on a substantial cash balance of $140.3 million, as of May 31, 2020
- On the back of the announcement, ELMO shares are nearly four per cent up, trading for $7.30 per share
ELMO Software (ELO) has announced it’s reinstating its annual recurring revenue (ARR) guidance for the year to between $55 million and $57 million.
That ARR range represents an increase of between 20 and 24 per cent, when compared to last financial year revenue of $46 million.
Despite the reinstatement of the ARR forecast, the cloud-based HR and Payroll software provider’s revenue guidance remains unchanged at between $50 million and $52 million for the financial year.
The company has also announced it is sitting on a substantial cash balance of $140.3 million, as of May 31, 2020.
The solid financial position has come on the back of a $70 million placement ELMO executed in mid-May.
That placement closed oversubscribed, and the company issued 10 million shared at $7 each. At the time, that was an 11 per cent discount, with the company’s securities trading around $7.90 a share.
However, the company’s shares closed at $7.02 on Tuesday, however, showing investors are still making their mind up about the software provider.
In the same announcement, ELMO also said its negative earnings before interest, tax, depreciation and amortisation (EBITDA) had lessened, moving from between $4 million and $6 million to between $2.5 million and $4.5 million.
ELMO has stated that its operations “have continued without disruption” throughout the coronavirus period, with staff working remotely since March 23 2020.
Since yesterday, ELMO has been gradually reopening its offices in Australia and New Zealand.
It has become particularly useful for businesses to track regulatory requirements such as mandatory training units.
On the back of the announcement, ELMO shares are nearly four per cent up, trading for $7.30 per share at 1:38 pm AEST.