The 8common Ltd (ASX: 8CO) share price has returned to the ASX boards today to double in value. This comes after the software solutions provider announced its subsidiary, Expense8 has been selected in the GovERP panel of service providers.

At the time of writing, 8common shares are up an astonishing 95.45% to 22 cents. It worth noting that its shares reached an all-time high of 24 cents during market open.

8common sets eyes on growth

Investors are fighting to get a hold of 8common shares after the company released an upbeat announcement.

In a statement to the ASX, 8common advised that Expense8 will be the solution provider of Travel and Expense Management for GovERP.

The acronym GovERP stands for Government Enterprise Resource Planning. Essentially, this is a system comprising a number of important corporate capabilities to deliver services. It includes financial services, human resource services, procurement services and reporting.

GovERP is part of the Australian government's Shared Services Transformation Initiative in providing resourcing and services across the public sector.

Under the agreement, Expense8 will be available under a pre-selected panel of service providers. Expense8 will be the provider under the Travel Value Stream and Expense Management Value Stream for the Shared Services Program.

The government's GovERP panel covers 90 commonwealth agencies with over 130,000 employees that participate in the Shared Services Program.

8common stated that it currently generates a Federal Government Average Revenue Per User (ARPU) of $42. The company services around 20,000 government employees across 27 different agencies.

In the past 12 months alone, 10 Federal Government agencies have been onboarded, delivering implementation revenue of $540,000.

The GovERP platform is expected to be up and running in mid-2022. The first agencies to onboard to GovERP will be the Service Delivery Office and its clients during the middle of 2023.

Management commentary

8common CEO, Andrew Bond said:

We are delighted to be included in the GovERP Panel of service providers. Our appointment is a testament to the quality of the Expense8 platform and our ability to meet the high level of service offering and security sought as part of the tender process for this whole of government initiative.

The addition of Expense8 to the GovERP panel provides a significant ability for 8common to substantially grow our footprint within Federal Government and significantly increase our implementation revenue and transaction-based SaaS recurring revenue over the coming years.

8common share price snapshot

Investors would be excited by the company's strong share price gain today, reflecting quadruple returns over the past 12 months.

Based on valuation metrics, 8common has a market capitalisation of roughly $42.1 million, with approximately 200 million shares on issue.

The post Here's why the 8Common (ASX:8CO) share price is rocketing 95% today appeared first on The Motley Fool Australia.

The 8common Ltd (ASX: 8CO) share price is in the green territory after announcing to investors that it has secured a contract extension. At the time of writing, the software solutions provider's shares are up 4.5% to 23 cents.

Let's take a closer look and see what 8Common updated the ASX with.

Contract extension

Investors are driving the 8Common shares higher after digesting the company's latest news.

According to its release, 8Common advised it has won a contract extension with the NSW Department of Education (NSW DoE).

Under the renewed agreement, 8common will continue to provide the Expense8 platform to the NSW DoE until March 2023. Consequently, this follows the original deal that was executed in March 2016. The original deal comprised an initial 5-year term with an attached 2-year extendable option.

Additionally, 8Common highlighted that the renewal was a result of its strong product delivery, exceptional customer service, and solid relationships with the NSW DoE.

Expense8 provides travel and expense management, and card services for over 150 entities for federal NSW and Northern Territory governments. The platform has more than 132,000 active users within state and federal departments. In the NSW DoE, 22,000 active users and 14,000 credit cards are managed.

Furthermore, the additional take up of Expense8 is expected to generate $960,000 in revenue for 8Common. Notably, in FY21 alone, the company has won over $2.5 million in contracts.

What did the CEO say?

8common CEO Andrew Bond welcomed the deal, saying:

We are exceptionally pleased to continue our relationship with the NSW Department of Education. Our ongoing relationship reflects the product delivery and user benefits of our Expense8 solution. Our ability to continue to support existing customers, execute new products and onboard new customers is a testament to our product quality as well as our robust development, R&D and operational capabilities.

We continue to see a strong pipeline of growth in 2021 and we look forward to expanding our presence with the State and Federal Government sector as well as large enterprise businesses.

About the 8Common share price

The 8common share price has jumped more than 350% over the past 12 months, with year-to-date performance sitting above 50%. The company's shares hit a multi-year high today of 23.5 cents.

On valuation grounds, 8Common has a market capitalisation of $45 million, with roughly 200 million shares on issue.

The post Here's why the 8Common (ASX:8CO) share price is rising today appeared first on The Motley Fool Australia.

The 8common Ltd (ASX: 8CO) share price is up this morning on the news that the Department of the Prime Minister and Cabinet (PMC) has extended a key contract for an additional year.

8common shares have pushed 3% higher to 16 cents at the time of writing. 

About 8common 

8common's core product 'expense8' delivers travel and expense management (TEM), card application and management to large Australian enterprises including Woolworths Ltd (ASX: WOW), Broadcast Australia, Amcor Plc (ASX: AMC) and state and federal government agencies. 

Perform8 offers a suite of innovative online surveying solutions that are designed to assist business leaders at all levels to drive action and improvement in their teams. Perform8 is currently being used in 7 countries, globally. 

Payhero enables one-time and subscription customer billing to be managed in one place, helping business owners easily generate new revenue streams, spend less time chasing outstanding accounts and get paid faster with payment automation. 

Contract extension

The PMC contract extension represents the second one-year extension after a successful initial 3-year period and first one-year option period.

This extension includes new implementations for the National Drought and North Queensland Flood Response and Recovery Agency and the National Indigenous Australians Agency, which are serviced by PMC.

The contract is worth an estimated $236,000 in revenue, which brings 8common's total FY21 contract wins to date to $1.1 million. 

8common CEO Andrew Bond commented:

The extension, along with the addition of six new Federal Government entities announced in August 2020 highlight the continued growth opportunities within the Federal government. We continue to see a strong pipeline of growth during the FY21 from our core Expense8 and the roll out of our CardHero product.

How has the 8common share price performed recently?

The 8common share price has more than doubled in recent months following a strong FY20 result, a 3-year agreement with EML Payments Ltd (ASX: EML) to issue prepaid Mastercards through its platform, and $2.25 million capital raising to fund its growth. 

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