Livehire's quarterly update shows Morgans a continuation of trends in the Australian SaaS business and the initial revenue contribution from the Nth American contingent labour opportunity.

Churn remains an issue in the SaaS business, highlights the broker. However, it's considered a reduction in clients on the legacy product and increased penetration of multi-year deals show the potential of this business. Additionally, higher annual recurring revenue (ARR) per client on new signups is a positive.

The foundation for success in Nth America are being set, believes the analyst, with the signing of three initial distribution partners and advancing towards the company target of 7-10 quality partnerships.

The Add rating and $0.50 price target are unchanged.

Sector: Software & Services.

Target price is $0.50.Current Price is $0.29. Difference: $0.21 - (brackets indicate current price is over target). If LVH meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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