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
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.
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.”