intelliHR Ltd (ASX:IHR) recorded strong improvement across all major metrics, including revenue, cash flows, customer numbers and customer retention during the first half of the 2021 financial year (FY21).
The company’s international expansion strategy underpinned record growth in the first half of FY21.
Invoiced revenue during the period from continuing operations increased 81% to $980,000 compared with the corresponding period of FY20 and 47% on 2H20.
Total contracted headcount doubled in 1H21 and annualised invoiced revenue as of December 31, 2020, was around $2,595,855.
During the period under consideration, the company’s contracted subscribers increased by a record 14,639 to a total of 29,170 as of December 31, 2020, an increase of 147% on the first half of the previous financial year.
The international expansion strategy has started yielding early results, with intelliHR now supporting businesses across 18 countries and global subscribers accounting for 41% of total subscribers.
“New phase in revenue generation”
intelliHR managing director Robert Bromage said: “This half demonstrates that intelliHR has the product suite and capability to execute upon its global growth strategy. Over 40% of our subscribers are now located outside.
“Australia and we have entered a new phase in our revenue generation with three international enterprise customers added in the H1 of FY21.
“This increased average customer headcount by 45%.”
New business to drive growth
Three successful enterprise contract wins delivered a 288% increase in the first half of FY21 with new subscribers per account, a 58% YOY increase in ARR per account.
Total new contracted customers in H1 of FY21 increased 60% on a year-on-year basis to 43 new customers added.
Bromage said: “intelliHR’s recent continued Enterprise success has established its credibility as having a strongly differentiated people management solution capable of competing with leading industry incumbents.”
“We are pleased to see a strong enterprise pipeline emerging.
“Our customer base now spans 18 countries and we are positioning to grow more aggressively as we continue to expand our North America team, as well as increasing our commitment toward the UK market.”
“With multi-language support to be added to the platform in the coming weeks, our plan is to target Europe with expectations of market entry later this year, significantly increasing our addressable market.”
New enterprise contracts
The company has achieved strong growth in the first half of FY31 due to the acquisition of a record 43 new paying customer as a result the total number of contracted customers rose to 151, which is 60% higher than FY20.
Increasing enterprise contract wins also drove a 288% increase in average subscribers per new customer in the first half of FY21 to 340.
Enterprise accounts also drove an increase in average contracted ARR per customer to $21,343 in the first half of FY21, compared to $13,466 for H1 FY20.
Strategy and outlook
intelliHR’s key areas of focus for the second half of FY21 include:
- Accelerating international expansion specifically in the Americas and UK markets, being timed to align with a recovering global economy;
- Building a ‘best of breed’ marketplace ecosystem with complementary global technology vendors leveraging strategic partnerships for integration-led global expansion; and
- Continuing to invest in R&D to maintain intelliHR’s market-leading position.