TIDMCALL
RNS Number : 6035F
Cloudcall Group PLC
16 July 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
16 July 2019
CloudCall Group plc
("CloudCall", the "Company" or the "Group")
Trading update for the six months ended 30 June 2019
CloudCall (AIM: CALL), a leading cloud-based software business
that integrates communications technology with Customer
Relationship Management (CRM) platforms, announces the following
trading update for the six months ended 30(th) June 2019:
-- Revenue up 30% vs H1 2018 with recurring revenue up 34%
-- Users up 37% vs H1 2018 to just under 37,000*
-- New orders received up 44% vs H1 2018, including the Company's first large enterprise deal
-- In Q2, monthly net user growth exceeded the stated target of 1,000 per month
-- US revenues now 40% of global recurring revenue
-- US operations profitable and generating cash
-- Terms agreed on a new GBP3m debt facility with Shawbrook Bank to replace current facility
-- Available cash resources of GBP4.5m through a combination of
its own cash, its new credit facility and its expected R&D tax
credit
Revenues for the six-month period were approximately GBP5.2
million, an increase of 30% against H1 2018, and recurring revenues
up by 34% compared to the same period. Churn remains low and
factoring in upsells, net renewal rates from existing customers
remain above 100%, helping to drive revenue and user growth.
Simon Cleaver, CEO of CloudCall, commented:
"As our 'net user growth' KPIs clearly show, the first half of
2019 was another period of solid quarter-on-quarter acceleration,
and I fully expect this trend to continue for the remainder of the
year.
The "four pillars of growth" strategy we have in place is
delivering results and despite some of our initiatives running at
different speeds, is clearly already growing sales and visibly
strengthening our pipeline of opportunities.
Whilst I am obviously pleased to note sales are growing
strongly, and that we tracked above our target of 1,000+ net new
users per month in Q2, for me, the standout development of the half
has been the quantum change in larger customers that are
considering adopting CloudCall's services. A number of these are
very large, which if won, would have a significant impact."
Overview
At its Capital Markets Day in January 2019, the Company
explained that investments being made are expected to drive growth
in four areas ('the four pillars of growth'), pushing the important
'net user growth' KPI to over 1,000 per month on average for 2019.
We are therefore pleased to report that in Q2 2019, monthly net
user growth averaged 1,027.
Over the full 6-month period, monthly net user growth averaged
932, taking the total number of users to just under 37,000, an
increase of 37% against H1 2018. A full breakdown of our average
monthly net user growth since these investments were made can be
seen below.
Total users 2018 2018 2018 2019 2019
H1 Q3 Q4 Q1 Q2*
Monthly average net
user growth 580 673 775 837 1,027
-------- -------- -------- -------- -------
Total users at end of
period 27,000 29,018 31,343 33,855 36,936
-------- -------- -------- -------- -------
*The Q2 2019 total users and monthly net new user growth figures
are adjusted downwards due the staggered rollout of the below
enterprise deal's 1,850 users.
Commenting specifically on the four pillars of growth:
Bullhorn
CloudCall's partnership with Bullhorn and its customers
continues to strengthen. Particularly notable in the period was the
marked increase in larger customers actively expressing an interest
in using CloudCall's service. The resulting sales pipeline for
these larger deals, categorised as 500 to 1,000, and 1,000+ users,
is significantly stronger than it has been before, and whilst sales
cycles are lengthier, the Company remains confident that a number
of these will become CloudCall customers before the year end.
In May, the Company announced that it had won the first of these
larger customers, with a contract worth a minimum of GBP1.1m over
three years, that sees CloudCall's service rolled out to nearly
2,000 users. Following a recent acquisition by this customer,
discussions have already started to extend this by a further 500+
users. This was a particularly important win as it provides a
reference point and comfort in CloudCall's abilities to the large
prospects in our pipeline and Bullhorn's larger customers in
general.
During the period, US operations grew strongly and, whilst the
increase in interest from larger customers is notable on both sides
of the Atlantic, it is particularly prevalent in the US. Overall,
the US now generates nearly 40% of our global recurring revenues
and we are also pleased to be able to report that US operations are
now profitable and generating cash.
Additional CRM's
Demand from CRMs keen to integrate with CloudCall continues to
grow and the Company is actively working with a number of these to
complete integrations and begin marketing before the year end.
In June, the Company announced the first of these new
integrations with The Access Group's 'Profile' recruitment CRM,
used by 15,000 users across 500 companies. We are pleased to note,
that since the partnership was announced, we have already begun
receiving sales leads. Furthermore, discussions have started with
the Access Group about integrating CloudCall with some of their
other CRMs and systems.
Much of the technical work which was necessary for this first
integration will enable faster future integrations. The Company
therefore expects to accelerate the rate of CRM integrations, with
further announcements expected in the second half of the year.
SMS and messaging upgrades to the existing customer base
SMS and messaging services are being adopted by both existing
and new users faster in the US than in the UK. In the US, over 17%
of customers have already upgraded and are using the service,
driving strong growth in the number of SMS messages per month,
which has tripled since the start of 2019.
The uptake of these new chargeable features in the US has helped
the US deliver strong growth and profits for a number of months and
is also helping to offset a reduction in recurring revenue per user
from the larger deals being done there.
UK SMS sales have been lower than expected, however, and work
continues to prioritise the development of integrations with the
social media messaging platforms that the UK customers prefer.
We are seeing that increased recurring revenue per user (RRPU)
from SMS services is working to counterbalance the downward
pressure we experience with larger deals. Overall, recurring
revenue per user (RRPU) has reduced by 2% to GBP27.40 since the
year-end, the majority of which can be attributed to the 1,850-user
enterprise deal announced in June 2019, with 800 of these users
taking a lower cost VoiP only product.
Microsoft Dynamics and Referral Partnerships
Microsoft distributes its Dynamics 365 CRM through a network of
reseller partners who sell, install, customise and maintain the CRM
for their customers. These resellers are CloudCall's route to
market for its integrated Microsoft Dynamics unified communications
products.
It is encouraging to note, that when approaching these
resellers, we have received considerable interest in the CloudCall
service. Since the beginning of the year, the newly formed UK
partnerships team has signed 15 referral partners. Most of this
initial tranche of resellers are now onboarded, trained and
delivering leads. The UK team are currently in discussions with a
further batch of resellers, which we expect to onboard later this
year.
Now that this initial tranche of referral partners is in place
and delivering leads, and in combination with the August 2019
launch of the new version of CloudCall for Dynamics 365, which
includes Broadcast SMS, we are confident that our Microsoft
products will start delivering growth in the second half of the
year.
Due to the success of the UK Team, in May 2019, a partner
marketing sales person was recruited in the US, specifically to
start approaching and onboarding US resellers in the same fashion
and we look forward to reporting progress in due course.
The latest release of CloudCall's new Unified Communications for
Microsoft Dynamics product has been a little longer in development
than was first anticipated. This was due to a fundamental change in
Microsoft's own user interface necessitating some redesign of our
product. However, it is pleasing to note that CloudCall's new
unified architecture enabled these significant changes to be
included without too much delay, and release of the new full-spec
unified communications product for Dynamics is expected in the
coming weeks.
Cash and banking facilities
During its Capital Markets Day, the Company indicated it was
reviewing its debt facilities.
With the current Barclays facility moving into its final year,
we are pleased to report that we have gone to market and negotiated
a more substantial facility with Shawbrook Bank.
This new GBP3m facility will replace the Company's existing
GBP1.85m facility.
Outlook
Even with the lag in revenue from larger enterprise customers,
the board expects the Company to deliver full year revenue growth
of over 30 per cent for 2019 and to report revenues in the region
of GBP11.7 million. With an increasing recurring revenue run-rate
this year, the Company has a high degree of confidence that it is
on-track to meet its future goals.
Whilst costs will continue to be tightly controlled, they will
be constantly reviewed to ensure the Company has adequate resources
in place for onboarding and servicing large enterprise clients.
The Company will also be hosting a webinar for investors at 11am
on 16 July 2019.
To register your attendance and receive instructions to join the
webinar, please go to:
https://cloudcall.zoom.us/webinar/register/WN_sS-vpgQKSOaibknXHKcZIg
For further information, please contact:
CloudCall Group plc Tel: +44 (0)20 3587
Simon Cleaver, Chief Executive Officer 7188
Paul Williams, Chief Financial Officer
Cenkos Securities (Nominated Adviser and Joint Tel: +44 (0)20 7397
Broker) 8900
Stephen Keys / Callum Davidson / Nick Searle
Arden Partners (Joint Broker) Tel: +44 (0) 20 7614
Steve Douglas / Ciaran Walsh 5900
About CloudCall Group Plc
CloudCall is a software and unified communications business that
has developed and provides a suite of cloud-based software and
communications products and services. CloudCall's products and
services are aimed at enabling organisations to leverage their
customer data to enable more effective communications.
The CloudCall suite of software products allows companies to
fully integrate telephony and messaging capability into their
existing CRM software, enabling communications to be made,
recorded, logged and categorised from within the customer
relationship management (CRM) system with detailed activity
reporting and powerful business intelligence capable of being
easily generated.
At the end of June 2019, the Company had approximately 150 staff
based predominantly in Leicester and London (UK), Boston (US) and
Minsk (BY), with just under 37,000 end-users relying on CloudCall
technology to power their daily communications.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTBRGDRGBBBGCU
(END) Dow Jones Newswires
July 16, 2019 02:00 ET (06:00 GMT)
Cloudcall (LSE:CALL)
Historical Stock Chart
From Apr 2024 to May 2024
Cloudcall (LSE:CALL)
Historical Stock Chart
From May 2023 to May 2024