BW coverage initiation

BW today initiated coverage of AD1. They ofc were the IPO backers so not surprising they are first cab of the rank with research.

Investment Highlights
 Only company that can claim 100% real jobs and no double-ups
 Disruptor to the recruitment industry
 Product is attractive to both jobseekers and employers
 Strong user growth (monthly user numbers have grown c.250% since January 2015)
 User growth to escalate further due to a large investment in sales and marketing following the IPO
 Significant cost savings to customers (c.A$150 per job listing using ApplyDirect versus potentially tens of thousands of dollars using a recruitment agency)
 Customer feedback positive, with the majority claiming improved candidate quality
 Long-term upside potential via offshore expansion into the US and Europe
 Competition the key risk, with several local firms offering various forms of employment databases and job boards. Having said that, AD1 is the only company that can claim all of its jobs are real, no double-ups and the jobseeker is directed straight to the employing company – no contact with recruitment companies.

IMO I expect quite a bit of business to be garnered from public sector. Govt all about cost control atm, and AD1 seems the obvious choice due to the way their product is structured and of course its low cost.

Cdchi1