The LiveHire Ltd (ASX: LVH) share price continued its impressive rise on Wednesday and climbed 7% to reach an all-time high of $1.07.
This brought the talent technology company's year-to-date return to over 205%.
Why did its shares climb higher today?
This morning LiveHire provided the market with its latest quarterly update which revealed strong growth in key performance metrics and cash receipts.
According to the release, Talent Community Connections (TCCs) increased 23.6% on the previous quarter to 447,575.
This was the eleventh consecutive quarter of growth in TCCs.
This ultimately led to cash receipts increasing 35% quarter-on-quarter to $444,075.
Management believes this result reflects the strong sales momentum of the Talent Community platform in the enterprise software space and the network effect of the ecosystem.
Should you invest?
Whilst I think that LiveHire is a quality company and has significant potential, I'm no longer a buyer of its shares on valuation grounds.
As the company scales I expect it to become highly profitable, but until there is proof of this happening I'm going to sit on the sidelines.
After all, with a market cap of close to $250 million, it certainly has a lot to live up to.
In the meantime I would suggest investors keep it on their watchlist and consider fellow tech shares Aconex Ltd (ASX: ACX) and Appen Ltd (ASX: APX).
