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ELO - ELMO Software

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ELMO is a leading provider of Software-as-a-Service (SaaS), cloud-based talent management software solutions in Australia and New Zealand. The Company develops, sells and implements talent management sofware solutons that enable organisatons to automate many of the HR processes and functions to efficiently manage the various stages of an employee's lifecycle from hire to retire. ELMO currently offers seven different modules covering recruitment, onboarding, performance management, learning and development, pre-built courses, succession planning and employee administration.

It is anticipated that ELO will list on the ASX during June 2017.

http://elmotalent.com.au
 
Good example of what can happen with a low free float share. Bought these last week looking for a momentum trade. Broke Darvas and CBL, P&F looked good, nice double bottom and has had good momentum since.

54mil shares on issue and free float of only 13.4mil. Good while there is momentum but keeping an eagle eye (and appropriate stops) in case the momentum drops. Don’t want to be in it when buyers start to drop off.

It reached the stage at 3:30 this afternoon where there are no sellers.


elo2 28 Feb 18_S.jpg


elo chart 28 Feb 18_S.jpg
 
ELO continued higher, but not without a few selloffs along the way.
The current break-out looks promising after what looks to be a textbook Wyckoff accumulation pattern.
@Triple B what do you think of this pattern on the daily chart?

elo2410.PNG
 
Looks Perfect . Accumulation looks to have started at $7. PS at big down bar with long pin and good vol.
good vol down to SC and into AR. quiet Acc with low vol test of support confirming supply gone,low competition from potential sellers. . last bar is nice with low vol to test demand .
Assuming IT Sector which looks to be consolidating during Uptrend.
Has all the signs (buying tests). how do you screen for these?
Should add the last bar will get traders attention now while screening ,helping demand and mark-up
 
ASX: ELO - ELMO launches new communications module enabling instant messaging and Zoom meetings within its platform
https://www.boardroom.media/broadcast-single/5e9e29d4bcba895752e676af
ELMO Software Limited today has announced the launch of their new communications module to market. Businesses in Australia and New Zealand can now seamlessly instant message and initiate Zoom conference calls all from within ELMO’s single, integrated cloud-based HR & Payroll platform.
Joining Boardroom.Media in the studio is ELMO’s Chief Commercial Officer Darryl Garber to discuss this new communication module.
 
This cap raising could only be described as 'opportunistic'

$70million at $7.00 a share from a "broad range of high quality, local and international funds".

This was on 08 May, at a then discount of around 10%. SPP applicants got out a bit better, stumping up $6.50 a share
upload_2020-6-6_11-11-27.png
 
FY20 Key Highlights
● Annualised Recurring Revenue (ARR) of $55.1 million, up 19.7% pcp
● Statutory Revenue of $50.1 million, up 25.0% pcp
● Cash receipts of $57.5 million, up 27.6% pcp
● Number of customers 1,682, up 25.4% pcp
● Well capitalised with cash balance of $139.9 million

ELMO provides the following guidance for FY21:
● Annualised Recurring Revenue (ARR): $65-70 million
● Revenue: $57-61 million
● EBITDA: ($4-7 million)
ELMO remains committed to its growth strategy, driven by strong organic growth supplemented with selective acquisitions

Robust (ish), but/ and probably impaired by Covid times. And competition. Trading below the cap raise price and quite a few that came on board may be having econd thoughts. Down 6%

(DNH)
 
ELMO acquires expense management platform Webexpenses
.... Provides complementary technology, customer list and accelerates ELMO’s UK expansion

Key Highlights
● Webexpenses is a high growth, cloud-based expense management solution, headquartered in the UK
● The transaction provides complementary technology, customer list and accelerates expansion of ELMO’s mid-market business in the UK
● FY21 guidance upgraded

Transaction highlights
● ARR of £4.5 million (A$7.9 million) growing at over 30% annually
● Over 1,000 customers in the UK with high retention of 90%
● High gross profit margin of over 90%
● Revenue 96% subscription based
● EBITDA of £0.6 million (A$1.0 million)
● Provides two-way cross-sell opportunity; expense management to be sold to ELMO customers in ANZ and ELMO’s HR modules to be sold to Webexpenses’ customers in the UK


travelling sideways up to now; will this be sufficiently synergistic? There are many players in this space; does ELO provide unique attributes (It provides organisations with "a centralised approach to managing an employee's lifecycle from 'hire to retire' including payroll and rostering / time & attendance, operating as a Software as a Service business model") and differentiation on a cost effective entrypoint to have a meaningful impact?

DNH
(my benchmark is Workjam)
 
Ally Selby (LiveWire): First up, we have ELMO Software, it's the furthest thing from Sesame Street possible. It's a SaaS company and it's got a market cap just shy of $500 million. James, I might start on you. Is it a buy, hold or sell?

James Dougherty: (Lennox Capital Partners) :
It is a sell. Look, it competes in a very competitive part of the market, revenue has been growing organically but so has the capitalisation rates of its R&D and the useful life of its intangible assets. If you look at the cashflow, losses have been growing steadily every year
Click to expand...

Ally Selby (LiveWire): Nick, it's about to drop off the S&P Small Ords index when the S&P rebalances at the end of the month. Is it a buy, hold or sell?

Nick Guidera: (Eley Griffiths Group):
I think it is a hold for me. I agree with James, it has certainly had its challenges, particularly through COVID19. Organic growth slowed, churn rose, operating leverage really has not been demonstrated in the last three or four years.
But I think there is a possibility that it could well be a vaccine beneficiary as businesses start to reinvest in processes, but I'd like to see a better risk-reward.
Click to expand...
 
Dona Ferentes said:
Ally Selby (LiveWire): First up, we have ELMO Software, it's the furthest thing from Sesame Street possible. It's a SaaS company and it's got a market cap just shy of $500 million. James, I might start on you. Is it a buy, hold or sell?

James Dougherty: (Lennox Capital Partners) :


Ally Selby (LiveWire): Nick, it's about to drop off the S&P Small Ords index when the S&P rebalances at the end of the month. Is it a buy, hold or sell?

Nick Guidera: (Eley Griffiths Group):
Click to expand...
ELMO is another share like Z1P ($6.50) I have that when it dips below $5.00 I would buy shares and as a rule keep a close eye on it when it hits $5.50 and sell when I feel the momentum has been lost rinse and repeat. The only trouble I have of late (No cash left in ATM fully invested) is the low volume and the large offer range. But I like the business and COVID has done it no favor. It should go better as we keep opening up.
 
ELMO Software announced its preliminary 2022 FY results, reporting strong growth in annualised recurring revenue, cash receipts and improved operating cash flow. CEO Danny Lessem said that FY22 was a strong year for the ELMO Group underpinned by high growth and increasing operating leverage.
  • The Group recorded underlying EBITDA of $7.1 million, up $6.5 million pcp and above the top end of the upgraded guidance range.
  • The cash balance was $47.9 million.
  • Total operating cash outflow reduced to negative $17.4 million, a 34% improvement pcp.
 
Key Highlights
● Annualised Recurring Revenue of $108.2 million, up 29% compared to 30 June 2021
● Revenue of $91.4 million, up 32% pcp
● Cash receipts of $116.9 million, up 46% pcp
● Underlying EBITDA of $7.1 million, up $6.5 million pcp
● $47.9 million cash balance
● ARR guidance for FY23 $134-$140 million, organic growth of 24% to 29%
● Operating cash flow breakeven forecast for FY23

Our Group organic growth accelerated as small and medium sized businesses continue to adopt cloud-based solutions to manage an increasingly flexible or hybrid workforce.
“We have seen an improvement in our operating metrics across both mid-market and small business segments. “A reduction in churn and an improved GP margin resulted in a substantial increase in the lifetime value of our customer base to $1.1 billion. This is a 75% increase on FY21.
Click to expand...

“Our strong brand in the markets we operate, our many years of investment into our product and the increased adoption of people management software, have ensured that we have strong momentum going into FY23. Despite the broader macroeconomic environment, this momentum is supported by our sales pipeline which underpins our FY23 guidance.
Click to expand...

Outlook:
  • ARR $134-140M
  • Revenue $112-120M
  • EBITDA $20-25M
  • Operating cash flow $(2.0M) - 2.0M
 
and should have read the entrails on this one:

13 Oct - ELMO confirms that it has received approaches expressing interest in acquiring the Company from various parties, including Accel-KKR. The Company is in discussions with selected parties in the context of maximising shareholder value.
Click to expand...

• ELMO announces entry into Scheme Implementation Deed with K1 Investment Management
• Under the proposed Scheme of Arrangement, ELMO shareholders will be entitled to receive $4.85 cash per share
• The Scheme Consideration implies an Equity Value of $486 million and represents an attractive premium for ELMO shareholders of:
-o- 100.4% premium to the last trading price of ELMO shares on 12 October 2022, being the final trading day prior to ELMO’s announcement that it had received approaches expressing interest in acquiring the Company
-o- 94.6% premium to the 1-month VWAP of ELMO shares to the Undisturbed Date
-o- 84.4% premium to the 3-month VWAP of ELMO shares to the Undisturbed Date
 
On February 24th, 2023, ELMO Software Limited (ELO) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between ELO and its shareholders in connection with the acquisition of all the issued capital in ELO by Cookie Monster AcquireCo Pty Ltd (an entity controlled by investment funds advised or managed by K1 Investment Management, LLC).
 
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