Xref (ASX: XF1) defies tech crash: grows profits by 834% and sales by 36%, adds 1.3M new users in 195 countries, grows headcount 24%

SYDNEY, Aug. 24, 2022 /PRNewswire/ — Global HR tech platform Xref (ASX:XF1) has comprehensively defied the contraction of the tech sector in its FY22 results, growing net profit after tax (NPAT) by 834 percent to $0.73 million and sales by 36 percent to $20.8 million since FY21.

In the same period it increased headcount by 24 percent even as much of the tech sector sheds jobs, and counted 1.3 million new users across 195 countries, rendering it one of Australia’s most global listed technology companies.

Other notable FY22 results for Xref included an EBITDA of $1.77 million, up 75 percent on FY21, and record lead flow growth of 100 percent, which drove sales performance and resulted from an increased focus on marketing.

On top of increasing headcount by 24 percent to 74 full-time staff, Xref also made 14 senior promotions and launched a new policy for awarding options for all staff under the Employee Option Plan.

Sales from new clients across a diverse range of global sectors were also up 55 percent when compared to FY21, representing 24 percent of total sales and demonstrating the breadth of Xref’s addressable market, while Xref also referenced sixty percent more candidates during FY22 compared to FY21.

This consistent growth in new clients and sectors across global markets demonstrates Xref’s ability to sustain hyper-growth of ~40 percent per annum since listing on the ASX, as it taps much larger addressable markets in greenfield markets overseas.

Cash at bank on 30 June 2022 was $11.7 million, compared to $8.1 million in June 2021, with an operating cash surplus of $4.62 million and a full year cash flow surplus of $3.54 million (including $1 million from warrant and option exercise funds).

This consistently improving cash position, and the resulting strong balance sheet, places Xref in a solid position to continue to invest in strategic growth and any possible M&A opportunities.

When combined with the launch of a series of new products planned for coming months, Xref expects to achieve continued exceptional growth well into FY23 and beyond.

Lee-Martin Seymour, Xref co-founder & CEO

Lee-Martin Seymour, Xref co-founder & CEO, said: “We are extremely proud to post such robust results at a time when many other technology companies are struggling. This clearly demonstrates Xref’s ability to significantly outperform and defy the current trends in the Australian technology sector.

“Such strong results are also a sign of unquestionable demand by businesses for data-driven technology solutions for a constantly evolving labour market.

“Talent remains on the move, and employers are facing an extremely competitive market. Shifting salary expectations, shorter tenures, remote working, sector transformation through digitisation, and lowered geographic barriers have all contributed to a dynamic and unpredictable employment market.

“Our technology solutions are designed specifically to help local and global companies not just solve these problems, but gain a sustainable competitive advantage through strategic talent acquisition, retention, and trust.

“We remain extremely confident the capital markets will recognise our significant outperformance and that our shareholders will be well-rewarded for supporting us over the coming years.”

Xref’s global and rapidly-growing customer portfolio includes the likes of Westpac, KPMG, Qantas, Coles, EY, Etsy, Tafe NSW, Rabobank, Air New Zealand, Uniqlo, and hundreds more household and global brand name companies.

Xref (www.xref.com, ASX:XF1) is a global HR tech company with a cloud-based platform that offers the HR industry actionable and data-driven insights, from pre-employment recruitment checks through to retention feedback tools, and exit interviews.

Xref has over 1,300 customers including blue chip brands such as Westpac, KPMG, Qantas, Coles, EY, Etsy, Tafe NSW, Rabobank, Air New Zealand, and Uniqlo. It also has over 1.3 million users across 195 countries, making it one of Australia’s most global technology companies.