Cloudcall Group PLC Trading Update (7317T)
10 January 2017 - 6:00PM
UK Regulatory
TIDMCALL
RNS Number : 7317T
Cloudcall Group PLC
10 January 2017
10 January 2017
CloudCall Group plc
("CloudCall", the "Company" or 'the Group")
Trading Update
-- Total revenues up by circa 50%
-- Recurring revenue up 63% year on year
-- Strategy to focus on key CRM partners is delivering results
-- Increased levels of recurring revenue underpins the Board's confidence for 2017
CloudCall (AIM: CALL), a leading cloud-based software business
that integrates voice communications into Customer Relationship
Management (CRM) platforms, is pleased to announce the following
trading update for the year ended 31 December 2016, confirming the
Group's results will be in line with expectations.
As a result of CloudCall's strategy to focus on key CRM channel
partners in order to accelerate product penetration, the Company is
pleased to announce that it expects to report revenue growth in
2016 of circa 50% over the prior year to approximately GBP4.9
million, at circa 78% gross margin.
Recurring revenue in the second half of 2016 increased 30%
against H1 2016, which had already seen a 25% increase on H2 2015,
resulting in a total recurring revenue growth of 63% for the full
year.
The Group continues to make good progress with Bullhorn, a key
CRM partner, and is seeing increased traction with Bullhorn's end
users.
There has been a continued reduction in the rate of churn, which
is now at record low levels and customer feedback on CloudCall's
products and service levels remains consistently positive(1) , with
numerous larger customers expanding their CloudCall usage to
further departments and offices. This reduction in churn rate,
strong H2 growth and the fact that circa 85% of the Company's
revenues are now recurring or repeating, provides good earnings
visibility and underpins the Board's confidence in the Group's
outlook for 2017.
At 31 December 2016 the Company had a cash balance of
approximately GBP3.2 million.
Simon Cleaver, CEO of CloudCall, commented:
"The strategy of focussing on key partners and mid-market
customers is clearly delivering results and we are seeing
significant growth in sales activity as our relationship with
Bullhorn and other key partners strengthens.
"It's also encouraging to see that the work we undertook early
in the year to improve our overall customer experience is now
delivering results. The increasing levels of customer satisfaction
can be evidenced by a reduction in churn rate, the excellent
reviews customers are leaving on the Salesforce.com app exchange -
which improves lead flow from Salesforce.com - and the growing
number of customers adding additional users and services.
"The combined effect of these factors resulted in a marked
increase in recurring revenue and sales to both new and existing
customers in the latter part of 2016 which provides a very solid
base for 2017."
For further information, please contact:
CloudCall +44 (0)20
Simon Cleaver Group plc 3587 7188
Cenkos Securities
(Nominated
Stephen Keys / Callum Adviser and +44 (0)20
Davidson / Alex Aylen Broker) 7397 8900
Ben Simons / Jeremy Garcia +44 (0)20
/ Fiona Henson Vigo Communications 7830 9704
About CloudCall Group Plc
CloudCall is a software and unified communications business that
has developed and provides a suite of cloud-based software and
telephony products and services. CloudCall's products and services
are aimed at enabling organisations to manage their voice
communications more effectively.
The CloudCall suite of products allows companies to fully
integrate their telephony systems into their existing customer
relationship management (CRM) software, enabling calls to be made,
recorded, logged and categorised from within the CRM system with
detailed activity reports capable of being easily generated.
As at 30 June 2016, CloudCall had approximately 750 customers,
equating to approximately 13,300 users. The Company will update its
customer and user numbers when it publishes full accounts later in
the year.
(1) - To see CloudCall's Salesforce.com reviews, please visit:
www.cloudcall.com/reviews
This information is provided by RNS
The company news service from the London Stock Exchange
END
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