LiveHire full-year revenue down 9.8% but losses narrow
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LiveHire (LVH:ASX), an Australia-based direct-sourcing platform provider, reported revenue from continuing operations of AUD 7.02 million (USD 4.7 million) for the full year ended 30 June 2024, reflecting a year-on-year reduction of 9.8%.
The company said the decline was in part attributable to the parting of ways with the large, non-ICP (ideal customer profile) agency client in North America to improve margins.
LiveHire’s net loss after tax improved from a loss of AUD 14.12 million (USD 9.5 million) last year to a loss of AUD 8.0 million (USD 5.4 million) in FY 2024.
The company stated that 2024 has been a challenging year as businesses cut back on both spending and hiring. It added that despite a sluggish macroeconomic environment, LiveHire successfully delivered on key strategic initiatives from early 2023, particularly in achieving cost reductions and focus on high-margin clients.
(AUD thousands) | FY 2024 | FY 2023 | Change | FY 2024 (USD thousands) |
Revenue from continuing operations | 7,027 | 7,786 | -9.7% | 4,736 |
Net loss after tax | (8,702) | (14,122) | - | 5,866 |
LiveHire added, “Management’s ongoing commitment to executing key initiatives, tailored to align LiveHire closely with market demand and customer purchasing behaviours, ensures that we are well-positioned to optimise the alignment between our capabilities, client needs, and future commercial returns.”
Last month, Humanforce Holdings announced it was moving ahead with an on-market takeover bid to acquire direct-sourcing provider LiveHire, according to regulatory filings on 14 August. Humanforce already holds 19.99% of shares in LiveHire.
Humanforce, based in Sydney, provides workforce management technology that handles scheduling, time and attendance, performance management and more. The goal in the on-market takeover bid is for Humanforce to reach 90% ownership for compulsory acquisition. LiveHire would no longer be a publicly traded company after the deal.
LiveHire’s Board unanimously recommended that all holders of LiveHire shares accept the offer, in the absence of a superior proposal, and sell their shares on market before the offer closes on the 30 September 2024.
LiveHire shares closed on 16 September in Australia at AUD 0.048 (USD 0.032), up 2.13% on the day and 32.87% below its 52-week high of AUD 0.0715 (USD 0.048), set on 29 September 2023. The company has a market cap of AUD 17.37 million (USD 11.7 million).