ELMO Software (ASX: ELO)

ELMO Software (ASX: ELO) Develops employee management software







Product / Service

  • ELMO develops, sells and implements talent management software that enables organisations to automate many of the HR processes and functions to efficiently manage employees

  • There are two key functions of employee management software:

    • HR Administration - HR Core manages HR processes like payroll, maintenance of employee records, expense management and leave management, payroll

    • Talent Management - recruit, onboard, manage, retain and train employees

  • ELMO offers seven modules to customers:

    • Recruitment - job requisition, talent pool search, integration with jobs boards, candidate screening, interview scheduling and offer & acceptance

    • Onboarding - uploading documents, introductory courses, IT and accounting department set up, policy acknowledgements

    • Performance Management - self and manager rating, goals, recommendations & endorsements

    • Learning & Development - assessments, surveys, instructional videos and presentations, instructor-led training

    • Pre-built Courses - a library of courses provided by ELMO

    • Succession Planning - flight risk, candidate comparisons, allocate training, employee-role matching

    • HR Core - people management and employee self-service

  • On average, customers subscribe to 2.3 out of the 7 modules

  • ELMO’s fees are typically annual payments by customers on three year contracts. The fee depends on the number of modules subscribed to and the number of users on the platform

  • ELMO also generates professional service fees for configuring and integrating the platform for customers

  • ELMO’s products are based on the Software-as-a-Service (Saas) model. SaaS is a software distribution model in which applications are hosted by a service provider and made available to customers over the Internet. This is in contrast to the traditional model of software distribution (‘software as a product’) where software is purchased and installed on a personal computer.  In this instance, the software is only available on that computer, as opposed to the SaaS model where the software is cloud-based and can be accessed from any computer with an Internet connection


  • Danny Lessem (current CEO) and Manuel Garber (a major shareholder) founded ELMO in 2002

  • ELMO was originally an eLearning platform focused on providing customised content for compliance and training

  • In 2007, ELMO received its first Australian Government supplier panel arrangement with the Queensland Government

  • ELMO expanded into NZ and Singapore in 2015

  • Since inception, ELMO has expanded its offering adding new modules over the years. Most recently this included HR Core which was released in early 2017


  • ELMO’s customers are primarily mid-market organisations with between 100 and 1,000 employees

  • ELMO’s customers range across 13 different industries


  • The company is headquartered in Sydney

  • The company’s operations are across Australia, New Zealand and Singapore

Profitability Table

Year Revenue ($m) % change EBIT ($m) % change
FY 2014 7.3 - 0.1 L
FY 2015 9.9 35.8 -0.1 L
FY 2016 13.5 35.8 -0.1 L

Fun Facts

  • ELMO is an approved government supplier to various Commonwealth, State and Local government departments in Australia

  • The costs associated with the IPO are estimated to be $3.4m

  • ELMO’s software is hosted by Amazon Web Services


Sources & More Info


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