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ApplyDirect Ltd (ASX:AD1)

Collaboration with Google a game changer

1 Video - Feb 18

ApplyDirect (ASX:AD1) has announced that it will collaborate and participate in Google’s Cloud Job Discovery beta program, which introduces Google’s job-search and machine-learning technology to the Australian market.  ApplyDirect’s adoption of Cloud Job Discovery is one of the first of its kind in Australia. Cloud Job Discovery is part of the Google for Jobs initiative, powering smarter job searches and recommendations to make the right jobs for the right job seekers easier to discover.  Google for Jobs is a search engine powered by Google. Launched in the US last year, it allows job seekers to search and apply for open positions directly from Google search, with greater visibility of employer brands and role descriptions. Results in the US to date have indicated a significant increase in the click-to-applied-position ratio.

Analyst comment: this announcement is a potential game-changer for ApplyDirect, as it could position the company to become the go-to solution for employers seeking maximum exposure online.  As highlighted in our initial report, Google for Jobs was always going to be rolled out in Australia after its success in the US. We were, however, unsure when this would occur or how it would affect ApplyDirect.

ApplyDirect’s announcement indicates that Google for Jobs could be introduced in Australia within the next 12 months and, as the first group to collaborate with Google prior to the expected launch, ApplyDirect will have a significant advantage in this space. Why? Because ApplyDirect’s clients are likely to receive priority ranking on the basis that their advertised positions comply with Google search engine requirements. And that higher ranking equates to increased exposure and thus the number and quality of candidates applying for positions.  We believe ApplyDirect was afforded this opportunity because it’s set to power two of Australia’s largest employer career pages – those of the NSW and Victorian governments. That equates to more than 800,000 employees (nearly 50% of all Australian public-sector jobs) and by extension a meaningful number of advertised positions.   In our opinion, therefore, the launch of Google for Jobs in Australia will result in greater penetration for ApplyDirect clients, which in turn will lead to a greater number of sales/clients for that company later in the year.

Valuation: we maintain our valuation for ApplyDirect at $0.43/share (share price $0.12). 

Victorian government engagement – Valuation update

1 Video - Jan 18
  • ApplyDirect has signed a managed services agreement with the Victorian Government relating to its whole of Government careers portal.
  • The new partnership with the Victorian Government, along with ApplyDirect’s existing partnership with the NSW Government, means that the careers platforms of the two largest employers in Australia will be powered by ApplyDirect.
  • We analysis the importance of this announcement and updated our valuation to $0.43/share.

Initiation Report

8 Videos - Oct 17

Apply Direct is an ASX listed recruitment software and digital marketing company which has simplified the recruitment process by connecting employers and candidates directly, which also significantly reduces the overall cost for the employer.  Through this analysis we:

  • Detail our valuation for the company;
  • Review the industry; and
  • Provide a range of management interviews.

Valuation Analysis

1 Video - Oct 17

To determine a valuation for ApplyDirect we examined three commonly used valuation techniques for technology company’s.  This analysis:

  • Explains each of the valuation techniques in further detail; and
  • Examines our sales/revenue forecasts per business segment.

Current online issues – ApplyDirect’s difference

1 Video - Oct 17

This video analysis the current state of the online employment sector and what ApplyDirect does differently.

Employment industry – market overview

1 Video - Oct 17

The high rate of staff turnover in Australia has created a highly competitive employment and recruitment industry which is estimated to be worth around $12bn pa.  This video analyses:

  • The size of the industry;
  • The major costs; and
  • Current issues with the industry.

What role will google play in the future?

1 Video - Oct 17

As with most thing in life today if you want an answer to a question usually the first place you look is google.  Google recently changed the way search results are displayed in the USA and they will soon be rolled out throughout Australia.  We discuss how this will affect ApplyDirect in detail.

The Pitch

1 Video - Oct 17