Ann: Strong Q3 Global Growth with New Marquee Signing, page-12

This a really good summary of the competitive landscape.

The HR software market can be broadly broken into the follow groups/modules/solution (needs):

- Applicant Tracking System (ATS) = JobAdder, PageUp etc
- Learning Management System (LMS) = Go1
- Performance Management System (PMS) = intelliHR (IHR integrate with all of these types of solutions through their partner/integration ecosystem)
- Workforce Management = Deputy
- Payroll = Sage, Xero, MYOB

All in one solutions like ELMO try to provide solutions for all of the above. As a result, all in one solutions go an mile wide and inch deep, so their functionality is very limited but spread across the entire platform ( jack of all in trades, expert in none). Whereas, best of breed solutions go an inch wide and a mile deep.

Elmo don't do Performance Management in any meaningful way (IMO) so I would only call them competition from the perspective that they 'have' performance management, but if your software strategy as a company is to use all in one platforms then you wouldn't consider using intelliHR (so IHR and ELMO wouldn't be competing because they serve two very different markets from a decision making procurement perspective). Interestingly, in my experience, companies rarely go from best of breed to all in one, most commonly they realise the short coming of all in one then change across to best of breed.

Similarly, ADP and other large legacy HR software providers have some sort of Performance Management module (solution) but it is not competitive or fit for contemporary organisations (particularly post-COVID and future requirements).

IHR seems to be one of the only best of breed PMS in the market globally in terms of providing a solution that is the product equivalent of a HR data scientist (arguably they do compete with Culture Amp but more of an overlap or difference in requirements). I don't think they are true competitors in most instances, as they would not be mutually exclusive (an organisation would benefit from having both, notwithstanding some overlap).

This means that as more companies look to integrate best of breed HR solutions from the list above to suit their needs, IHR is well placed to take a large % of the overall TAM (ARR) from organisations who don't have a PMS or use an average solution from all in one but will move across to best of breed from all in ones (either entirely or just some modules/solutions) as the all in one providers struggle to keep up with depth and breadth of functionality required as engagement, retention etc become more and more important (as an intangible asset on the balance sheet, that being ability to keep and up skill staff etc).

Lastly, as a mid-market and enterprise product, IHR can capture smaller clients before they grow and capture large clients as they transition from all in ones to best of breed.

I'm not sure if anyone else picked this up, but recently in the investor presentations, as the next phase or stage, IHR are going to open to online sales Product Led Growth (PLG) strategy to accelerate growth by allowing prospects to self-serve and then up sell (reducing cost to acquire and sales cycles).

Hope that helps give a bit of the lay of the land.