Blue Prism shares bounce on 40% revenue growth

Robotic automation specialists, Blue Prism (AIM:PRSM), saw its shares soar as it posted strong full-year performance, in spit of COVID-19 challenges.

The company said that full year bookings of £180 million – £122 million of which was new business – contributed to what the company’s anticipated revenue growth of around 40% year-on-year.

Blue Prism added that its cloud offering now comprises 17% of the business, and expects the division to post a 147% growth in full year bookings. The company were encouraged by their client’s willingness to expand their digital workforce during 2020, and said that alongside positive momentum during the second half, they see a strong pipeline that gives them confidence in their long-term growth potential.

During the course of the full year, the company added 490 new customers, increasing its user base by almost a quarter. Similarly, over a third of customers from the previous year added additional licences to their digital workforce during 2020.

The company finished by saying that it expects its EBITDA loss to be better than consensus estimates, while annual recurring revenue would be around £154 million.

Speaking on the company’s performance, Blue Prism CEO, Jason Kingdom, said:

“I am very pleased with the resilience and strength our business has shown through the extraordinary events of 2020. In the second half we have seen strong revenue retention with an acceleration in new business signed, particularly from Blue Prism Cloud. I am very pleased with the level of innovation from the Company too – with a step change in product releases and enhancements.”

“[…] We exit the financial year with a strong pipeline, underpinning our belief that intelligent automation will be key to driving recovery across enterprises of all sizes.”

“[…] We also continue to make progress towards cash break-even during 2021 and reassert our commitment to this.”

Following the update, Blue Prism shares rallied by around 10%, to 1,762p. This price is its highest level since lockdown started, and almost 30% ahead analysts’ target price of 1,237.50p a share.

Analysts currently have a consensus ‘Hold’ stance on the stock, while the Marketbeat community gives it a 52.69% “outperform” rating.