One of the best performers on the All Ordinaries index on Thursday has been the ELMO Software Ltd (ASX: ELO) share price.
In late morning trade the cloud-based human resources and payroll software provider's shares have jumped over 8% higher to $7.38.
Why is the ELMO share price charging higher today?
Investors have been buying ELMO's shares following the release of its latest quarterly update this morning which revealed further strong growth in its key metrics.
According to the release, the company delivered record growth in cash receipts during the fourth quarter to $15.5 million. This was a 63% increase on the third quarter and 57% higher than the prior corresponding period. It brought ELMO's full year cash receipts to $45.1 million, which was an increase of 60% on FY 2018's result.
The company also advised that it finished the period with Annualised Recurring Revenue (ARR), a lead indicator for future revenue, 48% higher than this time last year at $46 million. Pro-forma revenue for FY 2019 came in at $42.6 million, ahead of the $42.4 million guidance given in February.
A key driver of this growth was an increase in customer numbers over the 12 months. There were a total of 1,341 active customers using its software at the end of FY 2019, which was an increase of 310 or 30% year on year.
In addition to this, ELMO's chief executive officer, Danny Lessem, advised that successful module cross-selling to its existing customer base boosted its sales in FY 2019.
He said: "Our growth initiatives and convergent solution are resonating with the market and we are starting to see pleasing traction in the lower mid-market (50 to 200 employee organisations) and with the new modules that have been integrated into our product suite over the year. We remain focussed on investing in client services, sales & marketing and research & development to drive innovation and expand our valuable customer base."
The good news for shareholders is that Mr Lessem appears confident that the company is well-placed to continue this positive form.
He added: "We have strategically increased our market opportunity, broadened the platform and enhanced ELMO's competitive advantage. Our focus continues to be on delivering organic growth supplemented by strategic acquisitions; laying the foundations for sustainable growth into FY20 and beyond."
ELMO isn't the only All Ordinaries share racing higher today. Both Karoon Energy Ltd (ASX: KAR) and Onevue Holdings Ltd (ASX: OVH) have stormed notably higher following the release of positive update of their own.
