|Promotional post - The Growth and Innovation Forum will show you how to take advantage of new investment opportunities in technology stocks and funds. Come and see Terry Hart, CFO – CityFibre and 20 other companies present at the Growth and Innovation Forum on 31st January 2017 at Business Design Centre London. Find the next stock market ‘winner’. Satellite Solutions Worldwide +79%, CyanConnode +43%, Instem + 44%, Summit Therapeutics +32% and XLMedia +46% all attended last year. Click to register to attend for free Https://goo.gl/J9pCpW
The other companies also presenting Jaywing, RedstoneConnect, Blancco Technology Group, CloudCall, Frontier IP Group, CyanConnode, Bango, LoopUp, CityFibre, TP Group, AJ Bell, ANGLE, Legal & General UK Alpha Trust, Defenx, Instem, WANdisco, Collagen Solutions, Avacta, One pm Finance, Cenkos Securities and Mirada. Https://goo.gl/J9pCpW|
|More cloudcall reviews
|Just back from a week away without internet and seen trading update from Tues. Decent announcement and we will get the full picture when the final results are out in March but happy to hold, feel they are making decent progress and like the tight shareholder list and regular buying by directors. GLAH|
|In answer to my own question:
Positive, obviously, but clearly the support service is working well, as an integral part of the product.
Now, where are those profits?
|Ok thanks, I'll check it out. Though not sure how objective that's likely to be!|
|I don't have it to hand, but the link was in the trading update|
|No. Could you give me a link, please?|
|Brucie - have you read the Salesforce app exchange reviews of CALL?|
|A crucial nuance of a SaaS business - revenue is not the most important metric, ARR is, due to when a SaaS business actually gets to recognise this ARR as revenue. For example, deals sold in the last 2 months of 2016 may not have translated to any revenue in the FY if implementation took 2 months, revenue would only start being recognised in Jan.|
|sp. holding over the 200, but market remains diffident, as do I, somewhat. Does anyone on this bb. actually use the software and service that this co. sells? So far reviews have not been that favourable, though I believe that Paul Scott said some time ago that he rated it.|
|Millipede, spot on in your assessment. If you read the update carefully what Cleaver is pointing to is a very strong second half performance which will come through this year. Any sales booked by the business between Sept and Dec will impact this year not last year and the tone of the update suggests they had a very good final quarter. Don't forget they raised the new funding in Aug, I will continue to buy at these levels, seems rude not too!|
|Please unpick the following....
We have previously discussed on this thread that the key metrics here are (1) Annualised recurring revenue, (2) Churn and (3) Cash balance.
ARR was given in the 2015 end of year results as £4.65m. It has gone up by 63% since so ARR now should be 4.65 x 1.63 = £7.57m.
Churn going down and cash over £3m.
I am always looking for reasons to be disappointed but this actually seems pretty good to me.
|It's called a discussion forum.....
People are allowed to post....
Only have paper short....
...micro cap IT stocks are risky for real shorts....spikes...or offer from a competitor or a deal with say IBM !etc etc|
|Smithie - what's your interest in CALL? Are you short? Or just throwing mud?|
Paul Scott put Vislink and Snoozebox as buys...I put them as sells
One of us was shown over time to be right ;-)|
|Amen! As Cramer says, "I don't care where a stock has come from, I care where it's going!"|
|Been gradually building a position here and pleased with today's announcement. Growth company investor recently produced a positive note on the company and P. Scott has also commented favourably on today's update (see below). Happy to hold for the medium term as I like the board's experience, solid institutional support and more than enough cash to reach cash-flow break-even.
"Trading update - the update today reads very well, hence the 20% rise in share price today. Although it's important to remember that this is still a loss-making, cash-burning company, and has a track record of disappointing against forecasts, and repeated fundraisings (not always executed well).
Key points (this related to the year ended 31 Dec 2016);
Revenues up c.50% vs prior year
Recurring revenue up 63%
Loss will be in line with expectations (no figure given!) - I think this is likely to be something like £3.5m, but don't have any forecasts to hand.
Bullhorn & other CRM relationships are now key to sales effort, and it seems to be working.
Customer churn has reduced & customer service levels improved.
Good visibility for 2017.
Cash of £3.2m (but doesn't mention the £0.9m loan, so I make that net cash of £2.3m)
My opinion - if this was a newly floated company, without a history of disappointment, then I think (in current market conditions) there would be considerable appetite for these shares. So there is the potential here for a dramatic improvement in market sentiment, once the stale bulls have been cleared out, and providing the figures keep moving strongly in the right direction.
Cash burn is clearly still a problem though. So it's maybe too early to get wildly excited about this share. The revised strategy of concentrating on a few key CRM partners is a great improvement, and that's reflected in high margins, strong top line growth, and low churn.
If sufficient scale is reached, then this business would transform into something highly profitable. However, there's a long way to go, in terms of growth, to get to that point.
My approach is to ignore the past, and assess it fresh, as of today. On that basis, I feel risk:reward is improving. Good growth, and adequate (for now) cash, means that this time next year it should be not far from breakeven. As long as the strong top line growth continues, then I'm happy to hold. If top line growth dropped to say 20%, then I'd exit stage left.
Investors love high margin software companies with high recurring revenues & low churn. That's the perfect combination. CloudCall has exactly those characteristics, but the key missing link is that there just aren't enough customers (yet)!
On balance, I'm happy to run with it. None of the above alters the indisputable fact that this has been a very disappointing share to date. However, based on a strong update today, if you look at it freshly, I think there's a fairly good chance that the upside could be pretty good."|
|Interesting move today, though I seem to understand the chart better than the underlying business case. To me, it read, 'Wait and see where the sp, settles, then be ready to buy.'
Would be grateful if anyone could pass on what P. Scott is saying?
Or better still, Paul, could you summarise your view here? I notice you've been a buyer back in December.|
|.."clueless"...well paper trade sell is already ...'in the money'
But who knows...logic and a share price of a microcap...often little connection...(as Vislink, Globo, Fitbug, Mobile streams all proved, but for them ..reality did arrive over time)|
My track record is outstanding and better than, for example, Paul Scott.
And documented via tweets & website....which had detailed analysis on a number of shares..(including Globo as an avoid from 35p on way up due to rubbery accounts. 1.5-2 yrs later. Bust)..all correct/proven.
Some other star calls.
- Vislink. 2 website sell. From 50p & 60p....was 10p down at 60p !....went to 12p !!
- Mobile streams. 70p sell. Now 4p.
- €: $ sell call at 1.39:1....1.05 now. Massive for currency
Website (free hosted) may now be blank due to inactivity...since no one wanted to subscribe.
2017 pick..up 50%
Still not too late to buy ;-)
Or DCI....more to come imho|
...if CAC is high then the company has no working business model imho !!
~3.6M loss in 2016 (2x H1)
Cash raise at low price since no money.
'If' has to keep losing money and keep raising money ....because...to get more customers costs it a fortune !!....then no one imo will invest....
Investors 99% of time want cos. to generate cash and for growth to be self funded from profits....or via bank borrowings supported by profit generation...or share issues at always higher prices
CALL fails these reqts.
& the whole future of the co. seems to be being pinned on just 1 re-seller in USA...!!!
Just 1 !!
imho if the co. had a good product then it would sell....& not just via 1 re-seller...& imo wld not lose 3.6M/yr x yrs after listing & x +z yrs after first starting up.|