Human resources technology company Xref (ASX:XF1) today announced record sales and revenue growth for the first quarter of 2016. Sales for the quarter were more than 390% above the previous corresponding quarter, with a record month in March 2016. Additional information is available in the company's quarterly report lodged on ASX today.
Xref automates the candidate referencing process through an easy-to-use, mobile-friendly, cloud based platform. The platform saves recruiters time through an electronic process that allows employers to obtain references anonymously without using a third party, ensuring that the referee's feedback is unchanged and supplied direct to the employer in a secure format. This provides clients with a fast return on investment. Xref's service improves the quality of reference checking and helps reduce reference fraud, protecting clients' businesses.
The Xref platform is the candidate referencing platform of choice for 20% of the ASX top 50 companies. New clients secured in the first quarter include Coca-Cola Amatil, Department of Justice & Regulation (Victoria), Melbourne Health, The World Wide Fund for Nature, Honda Australia, Volkswagen Australia, Westpac New Zealand and Westpac Singapore. More information about these organisations is included later in this release.
At 31 March, approximately 51% of Xref's clients were enterprise companies, 18% government, 14% recruitment process outsourcers, and 10% small to medium-size businesses and 7% not for profit organisations.
Xref has commenced sales activity in the UK, exhibiting at the London HR Tech World congress attended by 3,000 delegates from more than 40 countries in March 2016. This boosted Xref's UK profile leading to a healthy sales pipeline, and potential clients are conducting trials using Xref's system. The UK human resources market is more than triple the size of the Australian market, and provides a gateway to the European and Middle East markets.
In March 2016 Xref launched its new online presence using the www.xref.global domain adding multi region, full mobile responsiveness as well as a new investor centre and blog site. The new site further supports Xref's global expansion strategy.
The Xref App is 'live' in the Oracle Cloud marketplace. Several clients are testing Xref's platform integration with the Oracle Taleo applicant tracking system to manage staff recruitment. The first client is expected to commence using the integrated systems on a 'live' basis during May. The Oracle Taleo Cloud Service supports recruitment for 6,000 of the world's largest companies. This opens up a new marketing channel which aids both client retention and the Xref globalisation strategy.
Xref sales for the quarter ending 31 March 2016 were $470,000, up more than 390% compared to the quarter ending 31 March 2015 ($96,000) and up 45% compared to the previous quarter ending 31 December 2015 ($324,000). This included sales of $204,000 in March 2016, a monthly record for the company.
Xref's business model involves selling Xref credits, which clients consume as they make candidate reference checks on a 'credit per candidate' basis. Once used, the credits are recognised as revenue. Client usage for the quarter was $266,000, up 181% compared to the quarter ending 31 March 2015 ($95,000) and up 12% compared to the previous quarter ending 31 December 2015 ($239,000).
Executive director/ CEO Lee-Martin Seymour said: "This was Xref's best quarter to date and March 2016 set a monthly sales record. We are executing successfully on our expansion plan, and have a healthy pipeline of new business opportunities. Clients are benefiting from our services which provide about 60% more content per reference report compared to references collected over the phone. Xref's brand recognition has increased and we are positioned well for ongoing growth and expansion internationally. Our experience in Australia and New Zealand enables us to replicate our sales structure and build regional sales quickly and effectively."
Executive director/ CTO Tim Griffiths said: "Xref has a dynamic growth trajectory bolstered by clients' increasing use of our platform and rapid expansion of our client base, which confirms the value of Xref's simple business model. We are focused on developing our infrastructure to support clients in Australia, New Zealand, Europe, North America and Singapore. The latest improvements to our online portal enable regionalisation through tailored dashboards for countries, increased scalability and improved content for clients. Xref has a healthy cash position and is managing funds prudently as we increase the scale of our operations to drive growth."
At 31 March, 2016 Xref held $3.2 million cash. The company is investing in its global expansion program, staff and development of the Xref platform to expedite sales growth.
Xref's new clients include the following organisations:
