CloudCall (AIM: CALL), a leading cloud-based software business that integrates communications technology into Customer Relationship Management (CRM) platforms, is pleased to announce its audited full year results for the year ended 31 December 2018.
Key financial highlights
- Recurring revenues up 34% compared to 2017
- Total revenues increased 28% to £8.8m (2017: £6.8m)
– US revenues increased 44% year-on-year - Total number of end-users up 33% to 31,343 as at 31 December 2018 (2017: 23,520)
- Net new monthly users added in H2 2018 accelerated to 724 on average (o/w Q3 = 673 and Q4 = 775)
- Gross margin reduced slightly to 78.4% (2017: 79.9%), with gross profit up 26% to £6.9m (2017: £5.4m)
- EBITDA* losses widened by 50% to £2.9m (2017: £1.9m), consistent with investment strategy
- Losses per share increased to 12.9 pence (2017: 9.9 pence loss per share)
- Cash and cash equivalents £0.9m (2017: £4.9m)
- Successful January placing raising £2.2m (net of expenses) giving effective available cash of £5.0m including an unused revolving credit facility of £1.85m
- Net cash absorbed by operating activities up 52% year on year to £2.4m
*excluding share-based payments
Key operational highlights
- The Group continues to make strong progress on its strategy based around 4 key pillars of growth
– Developing messaging functionality to sell to existing users
– Establishing a route to market through the Microsoft Dynamics CRM and Salesforce.com channel partners
– A deeper strategic partner relationship with Bullhorn
– Building integrations and commercial relationships with other CRM platforms in the recruitment vertical - Instant Messaging / SMS functionality launched in Q4’18
- CloudCall’s Microsoft Dynamics Partner Programme launched in Q4’18 following successful product launch
- Bullhorn’s Account Manager Referral Programme for CloudCall successfully pilots in Q4’18 ahead of a wider roll-out in Q1 2019
- CloudCall’s Easy-integrator toolkit to facilitate more effective CRM integrations is available for deployment in Q1 2019 with the next integration partners already identified
Outlook
- The fundamental principles of our growth strategy have always been about building a deeply integrated and relevant unified communications service and taking that to market through a network of committed and incentivised CRMs and their ecosystem of referral partners. Coming into 2019 with a compelling and innovative product offering and a rapidly expanding partner channel means we are very well positioned to execute our strategy.
- With a strong balance sheet and a focussed and effective growth strategy centred around 4 key growth pillars, the Board remains confident of achieving the stated growth plans for the year ahead, evidenced by a strong start to 2019.
Simon Cleaver, Chief Executive Officer of CloudCall, commented:
“The investments that we have made, and are continuing to make in our 4 key growth pillars have, as expected, increased our operating costs and cash-burn, but were always likely to have only limited impact on 2018 revenues. Despite this, we were delighted to see ourselves, for the second year running, positioned as one of the UK’s fasted growing tech companies by the Financial Times.
I am, however, hugely encouraged to see the early impact of those investments coming through towards the end of the year. With this investment ongoing, and accelerating in some key areas, having effectively removed some of the cash constraints from the business with successful placings in late 2017 and early 2019, we are well placed to deliver on our growth plans with a high degree of confidence in the future.”
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