The Australian - "Xref, a task-oriented team player"Posted on 04 May 2016 by Laura Johnson
With shares in Silicon Valley supernova 1-Page (1PG, 72c) crashing a further 18 per cent yesterday, we’re wary of the inflated promises in the human resources-related tech sector.
Shares in the well-backed Reffind (RFN, 14.5c) have also tanked, as has the recently listed verification play Tik Force
But we come to praise Xref, not bury it (and happy 400th birthday to the Bard).
That’s because Xref is gaining traction with its relatively simple tool to automate the tiresome resume-checking process.
Xref’s platform allows large employers to question a candidate’s nominated referee, based on bespoke online questions.
The homogenous approach removes the risks of privacy and discrimination law breaches, as well as the all-too-common danger of faked references.
Xref chief Lee Martin Seymour says HR managers spend an average two hours sourcing and analysing a single check.
Xref claims big name clients including Westpac, Coca-Cola Amatil and the caring Worldwide Fund for Nature.
1-Page, which six months ago was valued at a stonking $800m, also boasts an A-list of client names but naff-all revenue.
Cleverly, Xref charges companies upfront for credits, which are reduced by $50 for every check. Earnings are recognised when a credit is exhausted.
Xref trumpets March quarter sales of $470,000, up 390 per cent, and client usage of $266,000, up 180 per cent. Management is more coy about cash burn of $565,000 but has $3.1m in the coffers.
Xref has proved a task-oriented team player since listing via the shell of King Solomon Mines in early February. It’s hired as a spec buy on three months’ probation.
The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author owns ANZ Bank and Woolworths shares.
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