‘Significant global potential' for Aussie software play: PURE

Australian software play Xref has delivered consistent quarterly growth in Australia and New Zealand, and PURE Asset Management portfolio manager Tim Callan thinks they can replicate that success abroad.

The company’s software automates reference checking to simplify the hiring process and ensure job candidates are who they claim to be and are adequately qualified for the role.

Although originally developed for small businesses that didn’t have significant human resources capacity, Xref’s platform found favour with large enterprises looking to reduce the burden placed on their recruiting staff.

Businesses in the ‘trust economy’ – organisations like government agencies, not-for-profits and healthcare groups – have taken a particular shine to the company’s offering.

But Mr Callan noted Xref’s ambitions extend beyond checking references. The company is developing new products with the aim of becoming a complete pre-employment platform for HR professionals, he said.

And with only 15% of revenues currently coming from the northern hemisphere, Mr Callan said Xref has significant global potential.

“The company is profitable, and [demonstrates] consistent quarterly growth,” he said.

“They dominate in Australia and New Zealand but the key opportunity is moving in and expanding the growth in off-shore markets.”

Xref CEO Lee-Martin Seymour agrees that a global expansion makes sense, noting that the market in Australia and New Zealand (representing roughly 15 million workers) pales in comparison to Europe (~120 million workers) and North America (~180 million workers).

Importantly, Mr Seymour said, the size of individual businesses in these countries is also greater than that of Australian businesses.

“Our sales cycle is exactly the same in Australia as it is in North America, but the companies are so much bigger,” he said.

“We were always after larger companies, and if you look at the places we offer our services, like Texas A&M – the second-largest university in the US – or Lincoln Labs – the nuclear disarmament labs in California – you can see that Australia and New Zealand don’t hold the size of these businesses that we can perform for.”

Already the company has opened head offices in Sydney and Toronto, with staff also located in New Zealand, Europe and the UK – each servicing their own region and providing 24-hour support to customers globally.

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