Cloudcall Group PLC Trading Update (1998C)

TIDMCALL

RNS Number : 1998C

Cloudcall Group PLC

18 January 2018

18 January 2018

CloudCall Group plc

("CloudCall", the "Company" or the "Group")

Trading Update for Year Ended 31 December 2017

   --     Total revenues up 41% with recurring revenues up 55% year-on-year 
   --     End-users up 45% year-on-year driven by ongoing momentum from Bullhorn partnership 

-- Successful launch of new unified communications architecture now supporting Bullhorn and Microsoft Dynamics

CloudCall (AIM: CALL), a leading cloud-based software business that integrates communications into Customer Relationship Management ('CRM') platforms, is pleased to announce the following trading update for the year ended 31 December 2017, confirming the Group's revenues will be in-line with market expectations, which were revised upwards in September 2017.

Total revenues for the full year are expected to be approximately GBP6.9m, an increase of 41% from 2016, with approximately 87% of total revenue now recurring or repeating in nature. The Company expects to show an increase in recurring revenues of 55% over the prior year. Gross margin and operating expenditure are also expected to be in line with market expectations.

User numbers as at 31 December 2017 totalled just over 23,500, representing 45% growth over the prior year, and adding 3,320 net additional users since 30 June 2017.

Following a strongly supported equity fundraising completed in November, at 31 December 2017, the Group had available funds of approximately GBP6.7m made up of GBP4.9m cash at bank and an undrawn debt facility of GBP1.8m.

Much of the Group's revenue growth resulted from the Company's successful relationship with Bullhorn, which continued to strengthen throughout 2017 with the CloudCall service being rolled out to most of Bullhorn's staff during the year. The Company is also pleased to report that as the rollout of its new Bullhorn integration to customers gathers pace, feedback from end users continues to be consistently positive.

The Group also announces the launch of its new Microsoft Dynamics CRM integration ("Microsoft Dynamics"), built on CloudCall's recently launched unified architecture. Microsoft Dynamics is the second largest CRM in the world with a user base of over five million. With limited competition for integrated voice communications solutions and a number of prospective customers already evaluating our service, the board remains excited about the potential for this new product.

CloudCall's unified architecture has been specifically designed to enable it to quickly and easily develop and launch additional functionality. The Company is therefore pleased to report that excellent progress is being made on the development of its new SMS and instant messaging services. This new functionality is being keenly anticipated by our US operation, where we are experiencing considerable demand from both existing and potential customers for these new recurring revenue enhancing products, which are expected to be launched over the coming months.

Simon Cleaver, Chief Executive Officer of CloudCall, commented:

"Our strategy to focus on key strategic partners within certain market sectors - particularly those targeting the significant staffing and recruitment markets - and to deliver our solutions to larger, enterprise customers continues to deliver good growth for CloudCall. With the launch of a new centralised software architecture, we are better placed than ever to deliver enhanced functionality to additional CRM partners whilst simultaneously increasing penetration levels within our existing partners and addressing the expansion plans of our customers.

"With our recently launched Microsoft Dynamics solution, we believe there is a significant opportunity to build on our success with Bullhorn by introducing a strong and intuitive unified communications offering to a significant user base which is currently poorly served by other unified communications providers. Furthermore, there remains a sizable opportunity with Bullhorn, where we continue to work closely with them to drive the adoption of our solution across their customer base.

"Having recently strengthened our balance sheet, we are now focused on strategically investing in our core infrastructure to support ambitious growth targets, and I believe we are entering 2018 with one of the most robust and user-friendly solutions available. As a board, we were very encouraged by the performance of the business in 2017, and look forward to 2018 with confidence."

For further information, please contact:

 
CloudCall Group plc                   Tel: +44 (0)20 
 Simon Cleaver, Chief Executive        3587 7188 
 Officer 
 Paul Williams, Chief Financial 
 Officer 
Vigo Communications                   Tel: +44 (0)20 
 Fiona Henson / Jeremy Garcia /        7830 9701 
 Ben Simons 
 www.vigocomms.com 
Cenkos Securities (Nominated Adviser  Tel: +44 (0)20 
 and Joint Broker)                     7397 8900 
 Stephen Keys / Callum Davidson 
 / Nick Searle 
Arden Partners (Joint Broker)         Tel: +44 (0) 20 
 Steve Douglas / Ciaran Walsh          7614 5900 
 

About CloudCall Group Plc

CloudCall is a software and unified communications business that has developed and provides a suite of cloud-based software and telephony products and services. CloudCall's products and services are aimed at enabling organisations to leverage their voice communications more effectively.

The CloudCall suite of products allows companies to fully integrate their telephony systems into their existing CRM software, enabling calls to be made, recorded, logged and categorised from within the customer relationship management (CRM) system with detailed activity reports capable of being easily generated.

At the end of December 2017, the Company had approximately 120 staff based predominantly in Leicester (UK) and Boston (US) and 23,520 end-users.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 18, 2018 02:00 ET (07:00 GMT)