Cloud-based communications technology company CloudCall Group plc (LON: CALL) displays on-year improvement in financial performance in its trading update for the first half 2019.
The Company’s financials displayed comparative growth in H1 revenues, which were up 30% from 2018 to £5.2 million. Recurring revenues were up 34% on-year for the same period on-year, with the US market making up 40% of recurring revenues.
New order volumes were up 44% year-on-year for the first half and users are up 37% versus H1 2018, to almost 37,000. In Q2 2019, monthly net user growth exceeded 1,000 per month.
The Company added that it agreed terms with Shawbrook Bank for a £3 million debt facility, and that it had cash resources of £4.5 million through its own cash, its credit facility and its expected R&D tax credit.
“Churn remains low and factoring in upsells, net renewal rates from existing customers remain above 100%, helping to drive
revenue and user growth.” The Company said.
CloudCall comments
CEO of the Company, Simon Cleaver, stated,
“As our ‘net user growth’ KPIs clearly show, the first half of 2019 was another period of solid quarteron-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.”
The Company said in its statement,
“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.”
Investor notes
The Company’s shares dipped 11.26% or 13.40p to 105.60p a share 16/07/19 11:01 BST.
Elsewhere in the tech sector, there were updates from; TP Group PLC (LON: TPG), Mobile Streams Plc (LON: MOS), Sophos Group plc (LON: SOPH), MiriAd Advertising plc (LON: MIRI), Zoo Digital Group plc (LON: ZOO), Vela Technologies Plc (LON: VELA), Remote Monitored Systems PLC (LON: RMS).