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Share Name Share Symbol Market Type Share ISIN Share Description
Loopup Group Plc LSE:LOOP London Ordinary Share GB00BYQP6S60 ORD 0.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 77.00 74.00 78.00 77.50 76.00 77.00 230,018 16:35:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 34.2 0.4 2.5 30.8 43

Loopup Share Discussion Threads

Showing 1376 to 1400 of 1925 messages
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DateSubjectAuthorDiscuss
25/11/2020
21:59
The argument being put forward addresses your point, Maddox. 'Slack last said in October 2019 that it had more than 12 million daily active users. In October Microsoft said Teams had racked up 115 million daily active users." The thesis is that a Salesforce (which is ten times the size of Slack) Slack combination would be able to compete with Teams. apad
apad
25/11/2020
21:56
Hi Pratt, Useful exercise you've kicked off. I'm not nearly so pessimistic as to the H2 numbers. The Covid circumstances were present for four of the six months and I fail to see how the momentum created didn't follow through into H2. LOOP has a small stake of a large niche so I doubt that they've saturated the market! No doubt LOOP will have been selling as fast as they can and probably finding a receptive audience. Vaccine on the way or not - I seem to be sitting in as a many remote meetings and conferences as I was in H1. Worse case I could foresee is for usage to plateau. One factor that will dent revenue is a move to cheaper contracts from pay-as-you-go pricing, but I would expect that to be replaced by new customers. At 154p and H1 declared eps of 13.9p = p/e 11 (incl. only 6 months earnings) if they deliver the same in H2 p/e = 5.5. Conservative I'd venture as the Covid impact is supportive for the full six months (not four as per H1) and ignoring any Direct Routing contribution (which may in fact be negative due start-up/up-front costs). If I'm 50% out that would put LOOP on p/e 7.4 - still looking ridiculously cheap.
maddox
25/11/2020
21:26
Hi Apad, MS Teams is beating the pants off Slack - to the extent that Slack has filed an antitrust complaint against Microsoft in the European Union, accusing the tech giant of unfairly bundling its rival MS Teams product with its cloud-based productivity suite MS365. I use Slack it's a nice product but it's difficult to compete against a behemoth like Microsoft if it targets your market space.
maddox
25/11/2020
20:31
www.cnbc.com/2020/11/25/slack-shares-jump-following-report-of-possible-salesforce-acquisition.html More potential competition for Teams. apad
apad
25/11/2020
20:03
Edit, sorry, at 2021 profits of 8.1m, P/E would be at current levels, of around 11 (2021 Eps estimate at 13.9) ..11 seems low, so perhaps we need to look at 16-17, which would give us 200-230p range.Thoughts welcome! Please feel free to rip this apart. :)RegardsPrattDisclosure: heavily invested at 220p.
pratt2
25/11/2020
19:57
Was hoping to have an open discussion around FY estimates and what that means for profits and PE multiples to help reiterate the fundamentals here.H1 had circa 7.5m operating profit against 32m revenues. This however had an exceptional 3 months , April to June IMO which won't happen going forward unless there s another global 'event'. Judging by the discussions I have had with a friend of mine in the industry, volumes in these 3 months were 3 times as much as Jan/Feb/Mar. A lot of the revenue would've come from one off pay as you go volumes of minutes passing through. Now that there has been a mindset shift in the industry and a lot of flexible working likely to be the norm going forward, this will definitely play into LoopUp's favour. More importantly, it's the niche sector that's important, and more penetration here will only help. So here's where I need some help pleaae. Assuming a future H2 run rate of 50% incremental of pre Covid levels in my volume model, in a very linear fashion, and excluding any incremental wins from Direct Routing, we can perhaps look at c. 22.5m revenues and assume another c. 5.5ish m operating profits at same H1 margins, taking FY to £13m. Again, concious a number of assumptions with regards to margins remaining the same, and no additional wins, and the future run-rate. You can then perhaps assume 2021, if it remains as per the lower H2 run-rate, we d expect a baseline figure of c. 45m revenues and maybe lower profits due to higher costs (recruitment drive) , so perhaps at a lower 18% margin, 8.1m FY profits. This should hopefully be offset by new business + these resources being productive and bringing more in the pipeline as well. If the above scenario plays out, P/E (forward looking) at current prices would be around 19. I know this is super pessimistic and incredibly conservative. But if we use this as a starting point and start tweaking reasonably, we could get to a reasonable fair value. Does this make sense or is this utter garbage? :) Big questions I ve got are:Is the Direct Routing opportunity incremental or does it cannabilise/replace future revenues from current product suite?Is Zoom likely to be preferred choice? I m pretty sure the level of Inbound enquiries for LoopUp won't be anywhere near as Zoom (we have both Zoom and Teams in my org). So does indicate that LoopUp really is only for the niche professional services sector? But if yes, why won't they just go after Zoom, who are addressing their security flaws as we speak?I'd like to think the recruitment drive reflects the growth story and the growing pipeline, but can we really believe that's the case considering history here hasn't been great with regards to management capabilities?With all the above, I guess the key question is, what will the future run rate be for LoopUp and what really is sustainable growth considering the changing market dynamics (growth opportunity) Vs Zoom/other competitors (Threat). This will determine what PE to really attribute to the company. I know Gamma is a good comparator, however they've proven their mettle over the years, being a choice provider of SIP services for years now and hence market rightly gives it a PE of 29.9.
pratt2
25/11/2020
13:33
Well yes to some extent but as a CFO would one not be attracted simply by, for instance, a little less flying and a little more teleconferencing? How does that affect costs? I understand many meetings and decisions must be made face to face but once a relationship is established that requirement is diminished or eliminated. The market and businesses are very unsure about the future in all kinds of ways as are we all. I am much more interested in the company's position within a competitive arena but, surely, a growing one.
srichardson8
25/11/2020
13:06
The market is effectively pricing in the forward mechanism of people returning to work and not seeking vast expenditure on LOOP services.
leewain
25/11/2020
12:45
but with a vaccine being available are many will still need Loop services?
dros1
25/11/2020
12:42
Which is why companies have spent more money on employees working from home.
leewain
25/11/2020
12:12
Leewain, its not the market its LOOP themselves 23 September LOOP interim "The results demonstrate six months of strong financial performance, with significant revenue growth, margin expansion and high cash flow conversion. This performance has been driven primarily by the large-scale migration towards working from home due to Covid-19"
dros1
24/11/2020
21:50
The market perceives it as a "Covid related" stock
leewain
24/11/2020
20:41
How did this lose close to 30% in under a month?
pratt2
24/11/2020
16:00
Ta Maddox, I appreciate your sharing your information and experience. I am new to the company and now feel I understand both the company and its environment much better, having started off with too narrow a viewpoint. Thanks again. apad
apad
24/11/2020
15:43
Hi apad, their market is business customers, and their 1H performance was achieved against a switch of more general internal usage to MS Teams. However, that MS Teams User base then also becomes a target market for their Direct Routing proposition - so should be very positive net gain overall. Law Firms are using LOOP to conference with their clients - if MS Teams was the best option they could have gone that route from the outset. The trend is for business users to opt for LOOP as the better quality provider over using say Webex (of which I have a particular dislike due to awful experiences). LOOP has a differentiated niche offering and are thriving in a market that doesn't lack competition and these competitors didn't just appear recently.
maddox
24/11/2020
15:20
Hi Maddox, I should have typed "Will LOOP's ENTERPRISE, SPECIALIST customers migrate to Teams+LOOP, which is the negative question. This is 10th Sept. "The Group is pleased to announce that it has signed a significant new contract with one of the world's top-5 law firms. Following a successful pilot with 300 users, LoopUp Meetings will now be rolled out globally with the potential to become one of the Group's largest accounts. This contract follows two other top-100 global law firm wins secured during July and August 2020, demonstrating LoopUp's continued success to expand its footprint in the Professional Services market." I would expect them to lose Business customers and your note says this is already happening. It could get much worse! apad
apad
24/11/2020
15:10
To address your 'negative' question - will LOOP + MS user shift to Teams plus LOOP - that has already occurred and is responsible for the drop in revenue and share price in July 2019. A lot of LOOP users were using it for internal business meetings but then switched to MS Teams for internal meetings and kept LOOP for external conferencing. MS Teams is the natural choice for MS365 Users for internal meetings - but LOOP is ideal where you have external guests. There is a lot of stress on broadband bandwidth and the over-the-top OTT providers such as ZOOM, Webex can suffer on audio quality. This is particularly important with clients abroad that are speaking English as a second language. You want to be sure they can hear clearly and that you don't have to ask them to repeat themselves. Hence LOOP's focus on the Professional Services Sector - this is their sweet spot in the market. As Users experience the limitations of the OTT providers they will look and find LOOP to meet their needs. I don't expect this transition all occurred in Q2 as a result of Covid - it's probably continued at a steady pace all through the summer too. One other pricing negative is that it's likely that Users will switch onto contract and cheaper pricing thus there will be some loss of revenue from this to factor in.
maddox
24/11/2020
14:30
Sell and get Easyjet. Dont ask me
nesquikme
24/11/2020
14:24
LOOP? Teams launched 2017. LOOP trading update 16 July 2020 Revenue up 43% LOOP cloud voice added to Teams 29 July 2020 Loop announcement Sept 2020 - Major new contract win with one of the world's top-5 law firms - Expanded partnership to FY2022 with C&W Communications The LOOP system was complete - unlimited video, calling, dial out and international dial in, and so on. There are three plans: Free, Business and Enterprise with increasing functionality. Teams has a Msft PBX (phone system). LOOP says the Msft PBX is not as complete internationally as their Teams add-on, which is also a great improvement in quality and cheaper for intensive users. Teams profile has exploded because of covid and all of LOOP add-on description is about how it makes Teams easier for big organisations and automatically improves quality. So, there are two questions: Will Teams+LOOP gain a large customer base with big multi-nationals, which is the positive question. Will LOOP's traditional customers migrate to Teams+LOOP, which is the negative question. apad
apad
24/11/2020
10:39
Agreed. My point was more around, this isn't a Covid one off. Granted Q2 was exceptionally high but otherwise, we are likely to see still higher uptake going fwd + Teams integration. So overall, this should really be at a much higher multiple imo as based on current sp, it's sub 10.
pratt2
24/11/2020
10:29
I think the point about volumes is important but not vital. It really doesn't matter if a partner at a law firm works from home 5 days a week or once a fortnight. He or she wants a secure, high quality, easy to use video conferencing facility. And if you want it occasionally, that is enough.
donald pond
24/11/2020
10:11
This is a reasonable board, please don't spam it.
pratt2
24/11/2020
09:32
Travellers arriving into the UK will soon be able to reduce quarantine from two weeks to five days, if they test negative for coronavirus with a single rapid test. Sell Loop Buy airlines
nesquikme
24/11/2020
09:29
So maybe this will help discussions. Having spoken to a friend of mine who works for a Telco, he mentioned how a very similar company to LoopUp who uses his company as a supplier (carrier) and their associated volumes.He mentioned volumes shot up on average by 70% from Q1 into April through to June, and now have settled on around 40% runrate higher than pre Covid on a number of minutes (volume) basis.Now if we translated that across to Loop, what figures could we get to? Don't forget, the Teams integration is an additional revenue stream, so likely to add to the 140% new baseline as above.Thoughts?
pratt2
24/11/2020
06:29
Travellers arriving into the UK will soon be able to reduce quarantine from two weeks to five days, if they test negative for coronavirus with a single rapid test. Sell Loop Buy airlines
nesquikme
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