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Cloudcall Grp Share Discussion Threads
Showing 626 to 650 of 650 messages
|Ha. Another one who just happens to sell at the top of the cycle? I'll wait for his announcement when he buys at the the bottom of the next one :o)|
|Sometimes pays to be a bit more pragmatic with this. I sold at 1.10 and will be looking to buy back lower. Clearly PP thinks there's risk of a further fund raising, so the market will probably be looking to arbitrage this. In other words, what price offers sensible 'margin of safety'?|
|I should add that I've been in this 3 years plus and having been buying at points on the way down. Down 5% currently and by far my biggest holding|
|del, you and I are both down a considerable amount of money on this stock, we have been here for over 3 years and you are right to warn investors. There is still some risk but IMHO, this is now significantly reduced. I am not expecting anything earth shattering this year, just more solid growth with cash-flow break even clearly in sight. At that point I would hope the shares would have reached a level where I might be even, what an investor! However, I have been steadily buying over the last 3 months and my average price is coming down nicely so I might get there sooner.|
|Aye been saying the same thing for the last three years jimbo. This time is different.
As someone badly stung by the company, I think it is fair to earn newcomers.
Having said that, there is the slim chance that this could be one helluva buy here!
|Del - no AIM stock is suitable for widows or orphans, and this one has some history, but the trends are all positive. Most importantly they are behaving like a growth SaaS business that is maturing in its decisions, e.g. Continuing to focus on Bullhorn and SFDC rather than chasing a MS partnership. I know there is a profitability stigma here, but I think we can stop worrying about that now given the strength in the business CALL are growing. If they have to borrow more or issue more shares so what if they can continue at 50%+ YoY growth|
|Tx 140661. Still not one for widows or orphans, but increasingly worth a gamble with money you could afford to lose IMO.|
|140661 - thanks for the feedback - much appreciated as I didn't have time to listen to the call.|
|Feedback from today call with management from my perspective:
i. Management came across as very confident and focussed, much more than before.
2. Revenues booked last year would increase this years revenues by another £1m.
3. This year started off very well.
4. Operating expenses stable at these levels.
5. Already negotiating with Barclays for an extension of the £900k loan. My sense was that this would be extended soon and at a larger amount. R&D tax credit should provide £600k cash mid year.
6. Bullhorn relationship going from strength to strength. Now an integral part of many BH pitches.
7. Deep integration ongoing with Microsoft Dynamics which should go live later in year. This relationship was seen as having similar potential to BH but currently one tenth the size.
8. Current year all about continued delivery on major CRM customers and progress towards cash flow break-even.
9. Strong supportive shareholder base.
Cenkos view below:
KPIs sharply higher
CloudCall’s KPIs are moving sharply in the right direction. End user
growth and US revenues in particular have shown strong traction. The
delivery issues that hampered it in previous periods have subsided and
CloudCall’s knowledge and control of the business is appreciably better.
This greatly enhances the predictability in the business model in our
opinion and provides confidence in forecasts.
Strong FY16. FY16 revenues rose 47% to £4.9m, driven by a 37% rise in closing user
numbers to 16.2k. US revenue growth was especially strong (+147% to £1.3m), as
were recurring subscriptions (+63% to £3.3m). Recurring subscriptions formed 68%
of group revenues (versus 61% last year). Ex the non‐recurring item last year, LBIT
improved by £0.8m to £3.7m reflecting the higher revenue base recovering
overhead costs more effectively, and limited operating cost growth of 7%.
Focus on Tier 1. The strategic decision to de‐emphasise tier 2/3 integrations has
positively impacted the business. Larger customers with more sophisticated IT
systems make for much smoother CloudCall implementations. These customers
may come at a keener price but the delivery issues which hampered CloudCall’s
historic earnings are now absent. Customer on‐boarding costs and times are both
significantly lower as a consequence.
Improved predictability. The time lag between sale and revenue is now 2‐3 months
and stable customer on‐boarding periods (six weeks down from twelve for new
customers) make for a more predictable monthly recurring revenue (MRR)
Bullhorn. The relationship with CRM software provider Bullhorn is driving pipeline
growth and increasing the average customer size. We believe Bullhorn related MRR
has continued to move up YoY post year end and stood +180% YoY in February.
Phone functionality within CRM systems is an increasing priority for customers and
this is making CloudCall strategically important to its CRM partners, in our opinion.
FY18E breakeven. We are forecasting the business to breakeven next year (FY18E
FCF £39k) on two year compound user growth of 32%. As MRR continues to grow
and eventually recovers the group’s overheads, the quality of earnings will rise
substantially. That eventuality should yield an EV/sales valuation more in line with
sector averages (3‐4x or more), contrasting with the current rating of 2.7x in 2017E.
This would suggest 50% upside or more. Buy.|
|We are still in an uptrend 140661. Insti buying in over a week ago was a big thing for CALL.
|It will be interesting to see if one of the directors or one of the major shareholders picked up the 100k buy today. Given that the results provided little new information other than confirmation that trading was going well I am a little disappointed in today's share price reaction. Looking forward to Friday's call with management to see if we can glean anything further. GLAH|
|From PaulyPilot's area on Stockopaedia, it concludes:
"Personally, I'm allergic to situations where dilution is possible. For those who are willing to take the chance, I could see this being fairly tight - it will depend on continued sales momentum, of course, and also on whether the bank is willing to extend and enlarge the borrowing facility (at 8.7% above base rate).
At the current stage, I think I'd rather be the lender than the equity investor! "
Like I said earlier, I concur. I reckon they will have to tap the market AGAIN.
But, maybe for a small amount, and maybe, this time(!), for the last time.|
|I think we need to get on the webcast on Friday and ask direct questions about break even etc.
You are right Del, we have been promised stuff before.
But I think the numbers are now looking very good, whereas before they looked like they might get very good some point in the future.|
|Yup - I am not selling yet.|
|I trust Peter Simmonds and he is sounding very confident, this is taking time but it definitely moving nicely in the right direction and I am very happy to hold.|
|Yup, been saying that for three years TM!|
|Del, The numbers are what is important. Not what is being said about them. Cheers, TM|
|Yeah, I still have a suspicion that they will need to go back to the market for cash.
BUT (again, I know we have said it before) this could be for the last time and might be for a smallish sum.
I just cannot work out whether they have achieved escape velocity yet to take them into profit without a cash call...|
|Normally I'd agree, except strong growth isn't great news in this case as such as it has to happen, or............
Its all about the Cash imo|
|Strong growth in the US is great news. That's going to be a Hugh source of profit.|
|I think we have said the same every set of results TM!
|I wrote the post below after the trading update. With operating expenses for the year of £7.4m, albeit current operating expenses will be higher than this, I think they are very close to break even.
I think it is very positive they have stopped talking about it but have highlighted "transition to profit."
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.
|Fingers crossed PJ1!|
|I thought the future narrative was very positive.
As you state Del, we've been here before. I suspect another positive trading update in a few months could be the catalyst....|
|Yup, nice to be earning in dollars at the moment (and maybe doing development in pounds).|