Cloudcall Share Discussion Threads

[jimbojet17] 11/3/2020 10:20

My read on this - a large chunk of their revenue is with smaller businesses susceptible to economic downturns - recruitment. However the US and UK have stated efforts to support smaller businesses, and most interesting IMO is that most of CALLs revenue is recurring and they have a very good renewal rate

[the millipede] 11/3/2020 09:57

Hard to know tbh. But I think: no more than anyone else with a product that is not exactly discretionary spending.

The share price is holding up quite well I think, although it is down, obvs.

[a.fewbob] 04/3/2020 23:06

Any idea if these are likely to suffer due to Corona?

[the millipede] 25/2/2020 08:54

"Huge overhang it seems"

But another American investment house willing to buy.

[jimbojet17] 25/2/2020 08:52

The CALL train is finally leaving the station... jump on board before you miss it.I'm still accumulating at this level, incredible price for this growth. GLAH

[zipstuck] 25/2/2020 08:05

Q1 2020 is looking promising. March results will indicate outlook but seems to be gaining some traction in the last 4 months

[horndean eagle] 24/2/2020 16:26

Looks like a good contract today. Probably not greatest day for it to be released but to be honest would have made little difference. Huge overhang it seems. Possibly deservedly so.

[the millipede] 21/2/2020 18:46

The price movement shown here on advfn is baffling.

According to the London Stock Exchange website there were five trades today: 3 at 94p, a large one (50,000 shares) at 95p and a final trade at 93.5p.

I don't get how these trades have produced the intra-day movement plotted above.

[riostroy] 21/2/2020 11:18

Fall on no volume??

[zipstuck] 17/2/2020 08:44

Todays announcement enables CALL to expand into asia through partners which was stated strategy and will add obviously add more customers.

[the millipede] 07/2/2020 18:56

Very interesting post Longtermgains. Thank you.

Just a couple of trades today, look like two large-ish buys.

[140661] 05/2/2020 20:35

Some well thought through comments, so thank you The Millipede and Longtermgains. I have been a holder for many years and while the share price performance has been disappointing, I also share the belief that Cloudcall is significantly undervalued. My views warrant little respect but the buying by a number of US funds is a strong indicator that with a little more time these shares will start out-performing. The recent note by Cannacord felt quite conservative and even they are suggesting a fair value of over 170p. GLAH

[longtermgains] 05/2/2020 16:03

The current price of CALL and the valuations are both very far from being hyped and are also wrong. The US public markets and global private equity have a very vigorous and well-tested approach to valuing SaaS companies like CALL. Look at the BVP-Nasdaq Emerging Cloud Index ( hxxps://www.bvp.com/bvp-nasdaq-emerging-cloud-index ) and the extensive discussion on the BVP site(Bessemer Venture Partners - one of the leading venture investors in SaaS cos.) The UK stockmarket has yet to adopt them but it will. The US approach is all about optimising the growth rate and valuing the resultant future cash flows that are generated by the recurring revenues from the installed base. The current UK approach is best described as pragmatic, lacking in intellectual rigour and fails to reflect the nature of SaaS cos. This difference in approaches to valuation is a huge opportunity. And that is why US institutions are now beginning to arrive on the shareholder registers of UK quoted SaaS companies particularly CALL and why private equity will continue to approach UK SaaS companies. If CALL executes and delivers then, by 2025, the cash flows should be worth c850-900p. There is a huge amount to go for over the next five years and the current price is both very far from being hyped and way too low.

[deltrotter] 05/2/2020 09:51

At what point will you stop calling this a start up TM?

Or do you reset / restart it on each cash raise....

In which case this could be a start up for MANY years to come!

;-)

[the millipede] 04/2/2020 20:36

I think one of the interesting thing about CALL, which is probably common to many or even most start ups, is that putting a fair value on the equity can be quite tricky. Often speculation and hype can drive prices but, if I am honest, I don't see that here. Two posts here in a week, with consistently low trading volumes does not suggest a hyped share. Sirius Minerals, yes, especially before last summer; here not so much IMVHO. In fact, I think you might struggle to find a stock more under the radar than this one.

What we can say with confidence is that several institutions have been happy to buy shares at £1.00, including some American investment houses which is intriguing. I think the Americans have a different way of thinking about start ups from the average Aim Investor. My view is the institutions see good value here at £1.00 or they would not have handed over £12m in the recent fund raising.

Meanwhile the day-to-day stock price is controlled by the small number of trading private investors, several of whom (if you read back through this thread) don't fully buy into the strategy of raising equity to fund rapid growth. They would rather the company had raised less equity capital, prioritised profitability, and had grown more slowly. Because of that, on reflection, I am not surprised by the pull back in the share price.

A new company using cash funds to grow is going to post losses and CALL is no exception. And, because of the growth rate, by the time results are posted they are already irrelevant. The key metrics for now are not profits at all but annualised recurring revenue, churn, and cash burn, which is high now due to an expanding sales effort but will reduce. That sales effort should, in turn, lead to still faster growth in ARR. For those reasons I am not convinced Arden's forecasts have any meaning - they seem as confused as many other British investors about start up investment - and I would say if institutions are happy funding this at £1.00, as they seem to be, then that price represents good value.

I might be wrong. I certainly invested too early here, back when CALL was just a cash shell with an idea attached, and I do understand why people are looking at Arden's figures and moving on. Unprofitable start ups are not for everyone! But I also think this was the last equity raise - £12m - was large enough to ensure no more funds will be needed, as well as being supported by an especially interesting mix of institutions. What is more, CALL was close enough to "break even" last year that the business model is proven. The product is good and gaining traction. The revenues are growing fast with a £50m ARR target by 2025. The company has excellent management and a strong barrier to entry in the form of the personal relationships with the likes of Bullhorn that are needed for customers to get access to the product or anything similar. So I think fair value is probably some way north of here, and am happy to hold for the long term.

[rivaldo] 04/2/2020 11:09

Arden have reduced their forecasts. They now go for:

2019 : Loss before tax of £3.8m
2020 : Loss before tax of £5m

Not a holder, and unlikely to be on those numbers given a £36m m/cap.

Even netting out the £6.8m forecast cash at the end of this year (which will reduce quickly), a £30m or so EV is still almost three times historic revenues and seems a lot to pay.

At the core here there is I think a good business with prospects - but the valuation has been hyped too far imo and is still not decent value.

[davemac3] 28/1/2020 12:35

appears to be under the radar

[jimbojet17] 28/1/2020 10:07

Likewise, but a good opportunity for those of us who have the faith ;-)

[the millipede] 23/1/2020 15:05

Surprised by the drop to be honest, but if it continues I will probably buy some more.

[the millipede] 23/1/2020 15:05

Surprised by the drop to be honest, but if it continues I will probably buy some more.

[sooty snipes] 21/1/2020 16:07

Thanks for that. I'm a long term holder but really feel the need the patience of Job with this one...... Good luck all Sooty

[the millipede] 21/1/2020 12:42

There is a write up on Stockopedia, dated 16 Jan, which is good.

I don't want to copy it here or put words into Paul Scott's mouth by paraphrasing his piece, but on this stock he still holds and is upbeat, as am I.

The good news for me is the recent capital raise, which was substantial and which enables CALL to go for growth rather than profits. (I have been wishing they would and could do this for some time, now they have the money to get moving.) The increased US interest is also a positive as was last week's update which has great growth numbers and shows deepening relations with Bullhorn and others. Expansion into Asia...... etc.

This is still a speculative stock, but I think if you see CALL for what it is, and understand the risks, it is not a bad option, especially when set against other small speculative AIM stocks (most of which operate in the natural resources or oil & gas space, many of which are borderline scams which this is clearly not), and especially when you consider the revenue growth story.

Anyway, the share price movement seems to disagree with my thinking, but volumes are small and we have solid institutional support, especially now from the US.

[sooty snipes] 20/1/2020 22:09

Did Paul Scott give any coverage to the last trading statement? I think he used to or maybe still holds this

[the millipede] 20/1/2020 11:22

This share is like a sloth!

Update on 16th, market response on the 20th.

[montyville2] 17/1/2020 14:17

Now CALL is on the verge of success, I am sure it will be taking out by a competitor. Happy to hold!