TIDMCALL
RNS Number : 4483O
Cloudcall Group PLC
01 June 2020
1 June 2020
CloudCall Group plc
("CloudCall", the "Company" or the "Group")
AGM trading update and investor meeting
CloudCall (AIM: CALL), the integrated communications company
that provides unified communications and contact centre software
that integrates with Customer Relationship Management ("CRM")
platforms, provides a trading update covering the FY20 year-to-date
ahead of the Group's Annual General Meeting due to take place today
at 11.00 a.m. (UK time).
Trading update
Further to the Group's final results for the year ended 31
December 2019 that were published on 8 April 2020, the Group began
the year well, with key elements of its strategic growth
initiatives making positive progress, with early signs of a
strengthening sales pipeline. However, it quickly became clear that
the unfolding Coronavirus (COVID-19) pandemic would have a near
term impact on the Group's operations.
As previously reported, to preserve cash the Group proactively
adopted a more prudent approach to its investment plans, which
alongside several temporary cost reduction actions, has seen
operating cash burn reduce to around GBP250k per month at current
revenue levels. The Group's immediate cash preservation actions are
all firmly now in place and the Board remains highly confident that
the Group has enough cash to fund it through this period of
macroeconomic uncertainty.
The Group has continued to see ongoing challenges within the
broader marketplace with CloudCall's prospective customers reducing
non-critical additional spend, which has had a near term impact on
the sales pipeline. However, this effect is now stabilising
following careful and proactive management by the Group.
The Group's continued focus on marketing activity has
encouragingly kept year to date lead-flow running at around 70% of
the volume achieved over the same period last year. Overall sales
bookings from new customers for the year to date are running
approximately 28% less than the same period last year, and whilst
larger sales prospects continue to defer their purchasing
decisions, new sales bookings from smaller prospects have continued
reasonably well.
Existing customers, who typically purchase more users and
upgrades on a regular basis, are less inclined to do so given the
challenging market backdrop, and this is reflected in a 35%
reduction in existing customer sales bookings for the year to date
when compared to the same period last year.
Underlying churn levels, expressed as lost monthly recurring
revenue (MRR), pleasingly continue to run at normal historic
levels. The Group has also received a number of specific COVID-19
related requests for temporary relief from some customers and
permanent churn from others. To-date, CloudCall's customer services
teams have processed COVID-19 related requests amounting to
approximately 7% of MRR. However, half of this is for temporary
support, and as we currently stand, only approximately 3.5% of the
MRR reduction is expected to be permanent, with the remainder
anticipated to return over the coming months.
The Board continues to monitor the ongoing environment closely
and whilst the Group's customer base remains largely stable, the
Group will maintain a prudent approach to managing cash until the
broader macro-economic outlook becomes clearer.
At this point in time, whilst the Group remains confident in its
ability to successfully navigate the current disruption, the Board
continues to withhold its guidance as previously announced. The
Board hopes to be able to provide further information on its'
outlook within the interim trading update due to be issued in July
2020.
Simon Cleaver, CloudCall CEO, commented;
"As soon as the likely effects of the pandemic became apparent,
we took quick and decisive actions. Since then, I've been impressed
with how efficiently the company switched to home working and how
well our staff have responded to support our great customers.
There's obviously been considerable disruption to our growth
plans but in comparison to so many companies we're faring well, and
the team is doing a fantastic job to manage and navigate the
impact. Sales are down compared to our expectations at the start of
the year, but whilst it's too early to provide specific guidance at
this stage, I believe that if a second wave of COVID-19 can be
avoided, we'll finish the year with revenues broadly in line with
last year.
We're pushing hard to build our Microsoft Teams integration
which should launch in the next few months and we are focused on
ensuring we are battle ready to re-engage our growth plans as soon
as the climate permits."
Investor Meeting
The Company will be hosting an interactive presentation through
the digital platform Investor Meet Company at 1.00 p.m. (UK) today,
Monday 1st June 2020.
The Company is committed to ensuring that there are appropriate
communication structures for all elements of its shareholder base
so that its strategy, business model and performance are clearly
understood.
-- The online presentation is open to all existing and potential shareholders.
-- Questions can be submitted any time during the live
presentation, via the "Ask a Question" function. Whilst the Company
may not be in a position to answer every question it receives, it
will seek to respond to the most prominent questions within the
confines of information already disclosed to the market. Responses
to the Q&A from the live presentation will be published at the
earliest opportunity on the Investor Meet Company platform.
-- Investor feedback can also be submitted directly to
management post the event to ensure the company can understand the
views of all elements of its shareholder base.
Investors can sign up to Investor Meet Company for free and add
to meet Cloudcall via:
CloudCall_AGM_Update_2020
For further information, please contact:
CloudCall Group plc Tel: +44 (0)20 3587 7188
Simon Cleaver, Chief Executive
Officer
Paul Williams, Chief Financial
Officer
Canaccord Genuity Limited Tel: +44 (0)20 7523 8000
Simon Bridges
Richard Andrews
About CloudCall Group Plc
CloudCall is a software and integrated 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 and improve
performance.
The CloudCall suite of software products allows companies to
fully integrate telephony, messaging and contact centre
capabilities into their existing customer relationship management
(CRM) software, enabling communications to be made, recorded,
logged and categorised from within the CRM system with detailed
activity reporting and powerful business intelligence capable of
being easily generated.
At the end of December 2019, the Company had approximately 160
staff based in Leicester and London (UK), Boston (US), Minsk (BY0)
with over 42,000 end-users relying on CloudCall technology to power
their communications.
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contact rns@lseg.com or visit www.rns.com.
END
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