Job search site AD1 Holdings (AD1:AU) published a business update for the third quarter ended 31 March 2022.

The company received cash receipts totalling AUD 1.56 million (USD 1.11 million) in the quarter, representing an increase of 3% compared to Q3 2021 and was consistent with cash receipts from Q2 2022 on a normalised basis.

All business divisions reported growth during the quarter with the Art of Mentoring (AoM) business showing an increase in revenue of 38% compared to Q2 2022 and a 400% increase compared to the same period last year.

The group acquired AoM, a software-as-a-service business, in late 2020. 

AD1 Holdings also continued to witness steady organic growth in the Utilities division with an 18% increase in revenue compared to the previous year.

ApplyDirect continued renewal conversations with key customers continued while upsells across the existing customer base delivered an increase of 13.7% annual recurring revenue growth.

AD1 Holdings Chief Executive Officer, Brendan Kavenagh said, “We are pleased to have delivered another solid quarter for growth. The team continues to be focused on growing each of our key divisions and our expansion into offshore markets has proven fruitful with additional opportunity channel partner signings and pipeline growth specifically for AoM.”

“A recent US discovery trip has shown significant interest across the US in AoM by mid-market enterprises,” Kavenagh added. “As a result, we are currently planning to relocate our co-founder to capitalise on this exciting opportunity and facilitate stronger future growth.”

Looking ahead, as FY 2022 draws to an end the company remains focused on adding new customers across each of its divisions. A large driver of new customer growth will be aided by its offshore expansion.

“We anticipate that in Q4 2022 AD1 will finalise US expansion plans and continue to look at channel partner opportunities that will support further growth within the business,” the company stated. “Delivering shareholder growth is key to AD1, as such M&A remains a key driver of our outlook. We continue to explore acquisition opportunities across the HR Tech industry to further complement and broaden our existing offering.”