Hiremii Limited reports a modest 0.4% revenue increase to $7.5 million in Q2 FY25, underpinned by strategic AI platform deployment and expanding Energy Transition sector opportunities.
- Revenue rises slightly to $7.5 million despite contract completion impact
- AI-driven platform deployed with a global renewables client
- Energy Transition segment gains momentum, especially in the UK
- Stage Two of AI platform released on time, enhancing candidate experience
- Positive operating cash flow and solid financial position maintained
Steady Financial Performance Despite Market Challenges
Hiremii Limited (ASX: HMI), a recruitment technology company leveraging artificial intelligence, has reported a slight revenue increase of 0.4% to $7.5 million for the quarter ended 31 December 2024 (Q2 FY25). This growth was achieved despite the completion of a major contract with a key client in the previous quarter, which impacted contractor volumes.
The company’s gross profit remained stable at $0.71 million, closely matching the prior comparative period, while gross margin held steady at around 9.5%. Notably, Hiremii delivered positive cash flow from operating activities of $124,000, a turnaround from the prior quarter’s cash outflow, supported by effective working capital management and investment returns.
AI Platform Deployment Marks Strategic Milestone
A highlight of the quarter was the deployment of Hiremii’s proprietary AI-driven recruitment platform to a fast-growing global renewable energy client. This marks a significant step in the commercialisation of Hiremii’s technology, showcasing its ability to add value to high-growth organisations in the energy transition space.
Stage Two of the company’s product roadmap was completed on time and within budget, introducing enhanced candidate user interface features such as Quick Apply and Skills Extraction. The new 'embeddable' job board functionality allows clients to integrate branded career pages without technical expertise, increasing Hiremii’s market reach and network effect globally.
Growth in Energy Transition and UK Market Expansion
Hiremii’s Energy Transition segment gained traction during the quarter, particularly with new roles delivered for UK clients. This geographic and sector diversification is expected to underpin revenue growth and margin improvement in the second half of FY25, as the company leverages its AI platform to capture emerging opportunities in renewables and related industries.
Managing Director Andrew Hornby highlighted the resilience of the business and the strategic progress made, including a notable win placing two executive roles for a large Australian technology company expanding internationally. He expressed confidence in the company’s positioning for continued growth driven by technology adoption and a robust pipeline.
Looking Ahead: Stage Three AI Innovation
Hiremii is advancing development of Stage Three of its AI platform, which will introduce an innovative AI Shortlist matching technology integrated within a SaaS platform. This release aims to redefine traditional applicant tracking by automating candidate shortlisting while providing recruiters with transparent control over AI decision factors, addressing common concerns around AI 'black box' effects.
Chief Product Officer Peter Liddell emphasised the transformative potential of this release to enhance recruitment efficiency and reduce unconscious bias in early candidate assessments, positioning Hiremii at the forefront of AI-driven recruitment innovation.
Financial Position and Capital Structure
Hiremii ended the quarter with $1 million in cash and $1.57 million in unused working capital facilities, supported by recent capital raises and loan facilities secured against accounts receivable. The company’s EBITDA loss narrowed slightly to $0.246 million, reflecting controlled costs amid strategic investments in technology and market expansion.
Payments to related parties, including directors’ salaries, were disclosed at $118,112 for the quarter, consistent with prior periods and reflecting ongoing executive leadership remuneration.
Overall, Hiremii’s Q2 FY25 results demonstrate a company balancing steady financial performance with ambitious technology development and market expansion, particularly in the fast-evolving energy transition sector.
Bottom Line?
Hiremii’s AI platform rollout and UK market gains set the stage for accelerated growth in FY25’s second half.
Questions in the middle?
- How will the upcoming Stage Three AI release impact client adoption and revenue growth?
- What are the risks associated with reliance on key contracts in the Energy Transition segment?
- How effectively can Hiremii scale its AI platform globally amid competitive recruitment technology markets?