CloudCall announces its unaudited interim results for the six-month period ended 30 June 2018.
Key financial highlights:
- Strong trading during period
- Revenues up 30% to £4.0m (H1 2017: £3.1m) *
- Recurring revenues up 37% compared to H1 2017
- Annualised revenue run rate surpassed £9m in June 2018
- 89% of income now either recurring or repeating (H1 2017: 86%) **
- EBITDA loss (excl. share-based payments) widens to £1.5m (H1 2017: £1.2m) due to planned step change in investment
- £2.4m cash at end H1 2018 (FY 2017: £4.9m)
- £1.85m undrawn revolving credit facility with Barclays
- Net cash absorbed by operating activities up 23% to £1.7m (H1 2017: £1.4m)
- Positive trading continues into H2 with trading for the full year expected to be in line with management expectations
Key operational highlights:
- Significant platform and product development completed
- 27,000 users as at 30 June 2018 – up 34% (H1 2017: 20,162)
- 1,073 customers (H1 2017: 858)
- Average customer size – 25.2 users – up 7% (H1 2017: 23.5)
- Average contract length for new customers up to 20.4 months (H1 2017: 18 months)
- Increased investment takes headcount up to 141, up 40 from the end of H1 2017
- Phase 1 Instant Messaging & SMS functionality launched to Bullhorn customers during Q2 2018
- Broadcast SMS and Mobile enhancements for Bullhorn due for release in Q4 2018
- CloudCall Unified Communications for Salesforce and Microsoft Dynamics due for release in Q4 2018
* Revenue is stated after full retrospective adoption of IFRS 15 Revenue from Contracts with Customers. Impact is immaterial, with £9k reduction in H1 2018 (H1 2017: £66k reduction).
** Recurring revenue is that related to contracted subscription-based products. Repeating revenue is related to pay-as-you-go telephony revenue which, whilst not directly contracted, has a high degree of visibility and predictability.
Peter Simmonds, Non-executive Chairman, commented:
“I am pleased to report that results for the half year ended 30 June 2018 continue to reflect the good progress towards the strategic objectives set out by the board.
“The growth strategy continues to deliver high levels of revenue growth, most notably from our relationship with Bullhorn, a key channel partner and a leading recruitment sector CRM provider.
Growth rates across all the Group’s key metrics for the period were as follows:
- Monthly recurring revenues up 37% compared to H1 2017
- Total revenues up 30% to £4.0m (H1 2017: £3.1m)
- Annualised revenue run rate surpassed £9m in June 2018
- Total users up 34% to 27,000 (H1 2017: 20,162)
“We continue to see growth in the number of end users adopting CloudCall’s technology, further demonstrating the quality of our product. In addition, we have seen a clear trend that, once the CloudCall service is adopted by a customer, it subsequently gains significant traction and uptake across further users and departments and will soon have the extra revenue opportunities presented by the newly developed messaging platform.
“Following the equity fund raising in Q4 2017 the business has accelerated the completion of its new Unified Communications architecture and completed the first phase of its new Instant Messaging and SMS products.
“Also, in line with the stated plans, recruitment of additional partner development, business development, sales, and marketing resources have taken place in the period.
“These developments have positioned the business well to build a strong pipeline which will facilitate the continued growth of monthly recurring revenue through 2019.
“I would like to take this opportunity to thank all our staff for their drive and commitment which has enabled the business to move forward and strengthen its position. The board look forward to the remainder of 2018 and 2019 delivering on the clear and exciting growth strategy that has been set out for the business.”
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