Cloudcall Group report record sales for last quarter of 2019
(AIM:CALL ) says it is “well placed to weather this pandemic” with a strong balance sheet to enable the group to trade its way through the period of global uncertainty.
The AIM-listed cloud-based software business told investors it had £13.1m available cash for the year ended 31 December 2019 up from £0.9m in 2018 and including debt facilities.
The group’s full year results to 31 December showed a total revenue increase of 30% to £11.4m up from £8.8m in 2018 whilst US derived-revenues saw a 55% year-on-year boost.
Specifically, the group reached an annualised revenue run-rate surpassing £13m whilst its user base increased 35% to 42,348 up from 31,343 in the previous year.
The group’s net new monthly users in the second half of 2019 accelerated on average to 902 with 643 new users in the third quarter and 1,162 in the fourth quarter.
The group experienced ‘record breaking’ sales performance in the final quarter of 2019 which was assisted by two new enterprise deals which are expected to go live later this year.
Shares in Cloudcall Group were trading flat at 74.5p on Wednesday.
Simon Cleaver, CEO of CloudCall said that trading during the first two months of 2020 had been in-line with expectations but noted that sales opportunities had since been postponed due to the lockdown status of some countries.
“This has been partially offset by a flurry of orders from existing customers preparing for their staff to work from home, but we expect this to be relatively short lived,” he said.
Cleaver highlighted the group’s “strong forward revenue visibility” due to the relevance of its products which allow customers' staff to work remotely with full access to their usual systems.
The group said it had taken “decisive measures” to reduce its cash burn down to £250k per month by May 2020 and said it would continue to review its costs in the coming months.
“CloudCall is well capitalised and has the ability to reduce its cash burn relatively quickly,” added Cleaver.
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