Why is the LiveHire (ASX:LVH) share price tumbling 13% today?

It's not a good day to be a LiveHire shareholder.

| More on:
man grimaces next to falling stock graph

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The LiveHire Ltd (ASX: LVH) share price is plummeting today on the back of the company's latest quarterly report.

At the time of writing, the LiveHire share price is 34 cents, 12.82% lower than its previous close.

Let's take a look at the quarter just been for LiveHire.

But first, what is LiveHire?

LiveHire operates a cloud-based human resources platform focused on the hiring process.

It operates in 2 segments, its Talent Community, a software-as-a-service, and its Direct Sourcing business, which allows large organisations to use Talent Community to source and hire contract-based employees.

The company has been listed on the ASX since 2016.

The quarter that's been for LiveHire

The LiveHire share price is dropping today despite the company's North American Direct Sourcing business reporting 700% more revenue than it did in the prior comparable quarter.

The business' revenue came to $576,000 over the quarter just been. While that was significantly more than the first quarter of financial year 2021, it was down from $686,000 in the previous quarter.

The business also onboarded 3 new clients, bringing its total number of clients up to 17.  All up, that's an estimated contract value of $5.4 million.

The company believes its Direct Sources business is on track to have around 36 clients by the end of this financial year.

The company's software-as-a-service business brought in 8 new clients over the quarter just been. However, it lost 5 in the process. As of 30 September, it had 141 clients.

Talent Community's annual reoccurring revenue was $4.5 million at quarter's end – 3.5% more than it was at the end of the previous quarter.

The business' client retention also improved. It increased from 91% to 96%.

LiveHire reported it received $1.6 million of cash receipts over the first quarter.

It also saw its operating cash burn increase to $2.3 million, down from the fourth quarter's $1.6 million cash burn.

It ended the quarter with $13.2 million in cash, enough to fund another 9 quarters identical to its last.

LiveHire share price snapshot

While today has been a tough one for the LiveHire share price, it's been performing well this year.

Right now, it is 21% higher than it was at the start of 2021. It has also gained 6% since this time last year.

Should you invest $1,000 in Livehire Limited right now?

Before you buy Livehire Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Livehire Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Scared, wide-eyed man in pink t-shirt with hands covering mouth
Technology Shares

Is it game over for the Brainchip share price?

Will the ASX soon lose its most notorious meme stock? Let's dig deeper into things.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Technology Shares

3 of the best ASX tech shares to buy in March

Analysts have picked out three stocks with enormous potential to buy.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

$10,000 invested in this ASX 200 tech stock just 7 weeks ago is already worth $17,040!

The ASX 200 tech stock engineered a huge turnaround in January. Did you buy any shares?

Read more »

A man looking at his laptop and thinking.
Technology Shares

Up 100% from its 12-month low, is there any value left in this ASX technology stock?

An expert thinks this stock's epic run has left its shares looking expensive.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Dicker Data share price lifts 7% on half-yearly results

Artificial intelligence, cybersecurity, and the end of Windows 10 support are driving demand in FY25.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Down 32%! Should you buy beaten down WiseTech shares?

Let's see if analysts think this tech stock is in the buy zone now.

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Technology Shares

Why are Brainchip shares crashing 19% today?

What's going on with this stock today? Let's find out.

Read more »

Man jumping in the air outside.
Earnings Results

Why is this ASX 200 share leaping 7% in today's falling market?

The ASX 200 share is surging on Wednesday even as the benchmark index sinks.

Read more »