TIDMCALL
RNS Number : 7324F
Cloudcall Group PLC
20 July 2021
20(th) July 2021
CloudCall Group plc
("CloudCall", the "Company" or the "Group")
Trading update for the six months ended 30 June 2021
The Company will be hosting an interactive presentation via
Investor Meet Company's online platform at 4:00pm (BST) today. See
below for registration details
CloudCall (AIM: CALL, OTCQX: CLLLF), 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
2021.
Performance highlights:
-- Total revenues up 10.4% to GBP6.4m, with recurring and
repeating revenues representing 93.9% of total revenues
-- Total revenues up 13.4% on a constant currency basis*
-- Annualised run-rate revenue** (ARR) climbs 25% to GBP13.8m on
a constant currency basis (1H 2020 GBP11.0m)
-- Improving gross margin to 81.2% (1H 2020 80.2%)
-- Gross cash balance of GBP8.4m at 30(th) June 2021, with a
further GBP2.0m available to be drawn from the Group's debt
facility, and a further GBP1.0m expected from R&D tax credits
in the coming weeks
-- Strong recovery in Recruitment industry driving new business
sales growth acceleration across period
-- SaaS metrics improving and continue to demonstrate
effectiveness of CRM-based go-to-market strategy
o LTV:CAC >5x
o Net Retention Rate 100%
-- The Company remains in a strong position and with operating
expenses carefully controlled and tracking in line with plans, the
Board is confident in delivering its full year guidance for
FY21
*Constant currency revenue has been calculated by applying a
fixed USD:GBP and AUD:GBP exchange rate to both 1H 2020 and 1H 2021
revenues
**Annualised run-rate revenues (ARR) = total monthly revenues
multiplied by 12 months. In order to account for normal monthly and
seasonal fluctuations, both the non-recurring revenue (NRR) and
pay-as-you-go communications (PAYG) income have been calculated on
a rolling 6-month average for the purposes of calculating
annualised run-rate revenue
Simon Cleaver, CEO of CloudCall, commented:
"For CloudCall and many of our customers, 2020 was a challenging
year, but I'm pleased to say that now seems firmly behind us and
the business is once again thriving.
The recruitment sector, which represents over 50% of our
revenues, has bounced back at an astonishing rate and sales to new
customers have been accelerating throughout Q1 and Q2, we've also
witnessed considerable growth from our customer base who have been
increasing the services they buy from us. Many of our KPI's are now
running well above pre-COVID-19 levels which provides confidence in
achieving our targets for the full year.
I remain as passionate as ever about the value of CloudCall's
services to our customers and the efficient way we reach those
customers. The strong lead conversion rates and other compelling
SaaS metrics we are consistently achieving only increases my belief
that we are in the right market with the right product at the right
time. I remain hugely excited for what CloudCall can achieve."
Revenues:
Total revenues for the six-month period were GBP6.4 million,
representing an increase of 10.4% against H1 2020, whereas
recurring and repeating revenue grew by 8.7%, to GBP6.0m, when
compared to the same period. The lower relative increase in
recurring revenue is indicative of increased new business sales
with corresponding one-off fees for set-up etc. We are also seeing
an increase in SMS and telecoms traffic whose income is classed as
'repeating revenue'.
The relative strength of the dollar compared to the same period
last year has adversely impacted the 40% of Group revenues
generated in that currency when converting back to reporting
currency (GBP). When looking at revenue growth on a constant
currency basis, total revenues are 13.4% higher than the same
period last year and recurring and repeating revenues grew by 11.6%
over the same period.
Cash:
Having r aised gross proceeds of GBP7.5m via a share placing and
secured an updated GBP5.0m debt facility with Shawbrook in March
2021, t he Group reports GBP8.4m of gross cash at the end of the
half, with a further GBP2.0m available through its' existing
GBP5.0m debt facility. A further GBP1.0m is expected from R&D
tax credits in the coming weeks.
Sales growth accelerates through 1H:
The ongoing bounce-back we have seen in the Recruitment sector
has been accelerating across the half with new business sales in Q2
running 30% higher than Q1. Sales to the customer base also
followed the same trend with Q2 upsell sales 57% higher than Q1.
This increased sales activity is expected to drop through to
revenue across Q3 as these services go live. Indeed, our systems
are currently forecasting that August's new recurring revenue
billing is expected to increase ARR by approximately
GBP500,000.
Overall, over GBP2.5m of ARR sales were booked in total in 1H
2021, up 66% on 1H 2020.
Future KPI Reporting:
Following the review of published KPIs announced earlier this
year, the Company has decided to remove its user-based KPIs from
external reporting and replace them with customer-based KPIs.
Customers often have a mixture of VoIP accounts, SMS accounts,
campaign accounts, automated communication accounts, plus an
increasing proliferation of home, mobile and work accounts as
remote working patterns have changed. As a consequence, we have
been steadily moving away from the principal that a typical
CloudCall 'user' account is a direct match to a human being or a
'bum on a seat'. Reporting on numbers of customers rather than
users is simpler, removes any possible confusion and will not be
affected by potential further 'user' growth as the product evolves
towards more automation and reseller channel-driven revenues.
Our 'users' KPIs have also always included any signed users
waiting to go live which can become distortive if larger customers
delay their roll out plans. For simplicity and clarity, future
reporting of customer numbers will exclude any awaiting go-live and
will only include customers that are already billing.
This means that 'number of customers' multiplied by 'annualised
revenue (ARR) per customer' should closely approximate to our
reported 'annualised run-rate'.
In the interests of transparency, user numbers as calculated
under the previous method would have been 51,966 as of 30 June
2021, an increase of 19% compared to the same point last year.
Recurring revenue per user (RRPU) for 1H 2021 was GBP26.20, which
is in-line with the same period last year.
Going forward, as well as the usual financial KPIs, CloudCall
will report on the KPIs included in the below table.
Constant currency June 2021 December 2020 June 2020 % change % change
basis vs June 2020 vs Dec 2020
Annual run-rate
revenues (ARR) GBP13.8m GBP12.2m GBP11.0m +25% +13%
--------- ------------- --------- ------------- ------------
Number of billing
customers 1,591 1,480 1,317 +21% +8%
--------- ------------- --------- ------------- ------------
Annualised revenues
(ARR) per billing
customer GBP8,651 GBP8,238 GBP8,358 +4% +4%
--------- ------------- --------- ------------- ------------
% of recurring or * 1%
repeating revenue 94% 95% 95% * 1%
--------- ------------- --------- ------------- ------------
Outlook:
The Company reiterates its' intention to reach monthly EBITDA
break-even by mid-2023. As a consequence, whist we will be
announcing a limited number of additional CRM integrations, focus
will be placed on existing partnerships to maximise short term cash
flows.
With the positive first half of the year, the Company is in a
strong position and the Board remains confident in delivering its
full year revenue and OPEX guidance for FY21.
The Company will be hosting a live investor presentation
relating to the post close trading update via the Investor Meet
Company platform on 20 July 2021 at 16:00 BST.
The presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add to meet CloudCall Group plc via:
https://www.investormeetcompany.com/cloudcall-group-plc/register-investor
Investors who already follow CloudCall Group plc on the Investor
Meet Company platform will automatically be invited.
For further information, please contact:
CloudCall Group plc Tel: +44 (0)20 3587
Simon Cleaver, Chief Executive Officer 7188
Paul Williams, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser Tel: +44 (0)20 7523
& Sole Broker) 8000
Simon Bridges
Richard Andrews
Thomas Diehl
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.
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END
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