Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

This year. We're going Beyond.

ELMO Software (ASX:ELO) delivers record first quarter

The ELMO Software Ltd (ASX: ELO) share price will be on watch today after the ASX software company released its first-quarter cash report for FY21.

In early morning trading, the ELMO share price is flat, with shares last changing hands at $5.70.

ELO share price chart

Source: Rask Media 1-year ELO share price chart

Key results

ELMO reported record trailing 12-month cash receipts of $61.1 million, up 30.4% compared to the prior corresponding period.

First-quarter cash collection came in at $15.6 million, a record for Q1, representing a 29.8% increase compared to 1Q20.

ELMO remained operating cash flow positive, generating $2 million in cash from operating activities in the first quarter. However, this is lower than $6.9 million of operating cash flow reported in 4Q20 due to reduced cash receipts and greater staff and administration costs.

Nonetheless, ELMO finished the quarter with a strong balance sheet, boasting $130.4 million in cash and no debt.

Now what?

Earlier in the month, ELMO announced a $32.4 million acquisition of Breathe, a UK-based HR platform which services the small business market (less than 50 employees).

When ELMO announced the acquisition, it upgraded its FY21 guidance to be as follows:

  • Annual recurring revenue (ARR) between $72.5 million and $78.5 million
  • Revenue between $61 million and $66 million
  • EBITDA loss between $3.5 million and $7.5 million

The company reaffirmed this guidance today.

For context, ELMO reported $55.1 million of ARR, $50.1 million of revenue and an EBITDA loss of $4.2 million in FY20.

Looking forward, chief financial officer James Haslam said: “ELMO’s focus remains on delivering organic growth supplemented with strategic acquisitions. We remain well positioned to capitalise on tailwinds in the adoption of cloud-based business tools, including HR technology.”

Got $1,000? Try our #1 growth stock...

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or enter your email below. We'll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Got $1,000? Try this...

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or the button below. We'll email you the report.

Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading: