I re-read the quarterly report. Results show a very pleasing reduction in cash burn and it is likely to further improve this quarter. Factors driving this include
1. The price increase for IntelliHR subscribers was successfully rolled out to the existing customer base in Q4. However, it is unlikely all the revenue benefits were derived in Q4. There is likely to be a positive flow on to revenue in Q1.
2. Similarly, Q3 stated that redundancy saving in Q4 would lead to savings of at least $500,000 million per quarter. While a lot of this may be achieved in Q4 it is unlikely to all be reflected in Q4 revenue and cash flow will benefit further in Q1.
3. Due to delays with implementation there will be further gains when contracted ARR converts to revenue. In fact the quarterly states "Further strong growth in customer receipts is expected over the coming quarters given the current WIP pipeline yet to commence billing, representing 16,558 paying subscribers"
In addition, $810,000 was paid to IHR last year by AusIndustry who approved intelliHR’s R&D tax incentive for FY21. Presumably that will increase this year, as it has in other years, and will likely be paid in Q2.
Do your own research but I believe IHR has momentum behind it and will have a significant re-rating over the remainder of the year.
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