TIDMCALL
RNS Number : 8842X
Cloudcall Group PLC
10 January 2022
10 January 2022
CloudCall Group plc
("CloudCall", the "Company" or the "Group")
Trading Update for the year ended 31 December 2021
REVENUES IN LINE WITH GUIDANCE, GROWTH CONTINUES TO BUILD WITH
ANNUAL RUN RATE REVENUES UP 27% ON A CONSTANT CURRENCY BASIS
CloudCall (AIM: CALL, OTCQX: CLLLF ), a leading cloud-based
software business that integrates communications technology into
Customer Relationship Management (CRM) platforms, provides the
following trading update for the year to 31 December 2021.
2021 Financial highlights
-- Total revenues up 18.2% on a constant currency basis(1)
(15.0% FX adjusted) with recurring and repeating revenues
representing 94.2% of total revenues(2) (FY 2020: 95%)
-- Closing annualised run-rate revenue(2) increased by 25% to GBP15.3m (FY 2020: GBP12.2m)
-- Total reported FY revenues GBP13.6m (FY 2020: GBP11.8m)
-- Total customer numbers up 12% to 1,658 (FY 2020: 1,480)
-- Net retention rate 101% (FY 2020: 100%)
-- Gross cash of GBP5m with a further GBP2m available via the
Group's existing debt facility with Shawbrook Bank
2021 Operational highlights
-- Five new CRM integrations launched in 2021 effectively
doubling the Group's addressable market from sweet spot CRMs
-- The Group's significantly enhanced mobile-app is delivered to
selected customers for beta testing with full availability planned
for Q1 2022
-- Ongoing investment in internal tools and processes to support
scalable growth beginning to deliver benefits
(1) Constant currency revenue has been calculated by applying a
fixed USD:GBP exchange rate of 1.3 and AUD:GBP exchange rate of
1.92 to both FY 2020 and FY 2021 revenues.
(2) Recurring revenue is that related to contracted
subscription-based products. Repeating revenue is related to
pay-as-you-go (PAYG) telephony and SMS revenue which, whilst not
directly contracted, has a high degree of visibility and
predictability. Annualised run-rate revenue (ARR) = total monthly
revenues multiplied by 12 months. To account for normal monthly and
seasonal fluctuations, both the non-recurring revenue (NRR) and
PAYG income have been calculated on a rolling 6-month average for
the purposes of calculating ARR.
RECOMMED CASH ACQUISITION OF CLOUDCALL GROUP PLC BY XPLORER
CAPITAL GROWTH I, LLC
On 9 December 2021, Xplorer Capital Growth I, LLC (Xplorer
Capital), a newly formed company owned by funds advised and managed
by Xplorer Capital Management LLC, and CloudCall announced under
Rule 2.7 of the City Code on Takeovers and Mergers (the Code) that
they had reached agreement on the terms of a recommended cash offer
of 81.5 pence per share pursuant to which Xplorer Capital shall
acquire the entire issued and to be issued ordinary share capital
of CloudCall (the Offer). It is intended that the Offer will be
implemented by way of a scheme of arrangement under Part 26 of the
Companies Act 2006 (the Scheme).
A circular in relation to the Scheme was published on 15
December 2021 (the Scheme Document). A copy of the Announcement,
the Scheme Document and all related documentation can be found on
CloudCall's website at:
https://www.cloudcall.com/investor/offer-for-cloudcall
TRADING PERFORMANCE
Trading for 2021 has been in line with management expectations
and the Group is pleased to confirm that it has achieved total
revenues in line with the revised guidance issued during the second
half of 2021.
Total revenues increased by 15% to GBP13.6m and recurring
revenues increased by 15% to GBP11.9m when compared to the previous
year. On a constant currency basis, total revenue grew by 18% year
on year, driven in the main by the staffing and recruitment sector.
Since the middle of last year, the recruitment sector, which
represents over 50% of the Group's revenues, has bounced back
strongly with sales to new and existing customers growing well
throughout the year.
During the course of 2021 the Group has not only performed well
signing up new customers but has also seen upsells to existing
customers materially increase. This increase in sales to existing
customers, alongside underlying churn rates that have remained
stable, has contributed to a net retention rate of 101%. The
combined effect of strong new business sales, strong SaaS metrics
and net retention rates over 100% has resulted in annualised
run-rate revenues (ARR) growing from GBP12.2m exiting 2020, to
GBP15.3m exiting 2021, an overall increase of 25% or 27% on a
constant currency basis.
Operational highlights include the beta release of the Group's
new Mobile App. Building this in-house has enabled us to address
issues from the previous version built on third-party software.
This is expected to significantly enhance customers' mobile
experience once fully rolled out in early 2022.
2021 also saw the Group add five further CRM partners to its
list of integrations, effectively doubling the size of its
addressable market from those "sweetspot" CRMs around which its
growth strategy is centred.
Ongoing investment in our own internal systems in 2021, which is
vital to enable us to scale up more efficiently, has already
started to yield benefits within our service delivery and support
functions. Early 2022 will see further upgrades to our sales and
provisioning tools being deployed, all of which are expected to
significantly improve the processes around engagement with
potential new customers.
Alongside these investments being made to assist future revenue
growth, and as previously indicated within the Interim Results
Statement, careful cost control means that operating expenses and
therefore EBITDA losses are expected to be slightly lower than
previous guidance(3) .
CASH
The Group's gross cash balance was GBP5m at the period-end
which, after deducting drawn debt of GBP2.3m, provides net cash of
GBP2.7m. During the year, the Group received GBP1.05m in R&D
tax credit and expects to receive at least a similar amount in
2022.
OUTLOOK
The Board confirms that revenue performance for the financial
year to 31 December 2021 at GBP13.6m is in line with current
guidance and that, as previously stated within the Interim Results,
it continues to expect that the overall EBITDA loss for the
financial year to 31 December 2021 will be slightly lower than
previous guidance.(3)
In order to successfully execute its' strategy and meet the
Board's ambition of achieving monthly EBITDA breakeven by mid
-2023, as set out in the reasons for the recommendation by the
board of directors of the offer from Xplorer Capital, were the
offer not to be implemented the Group would require significant
further capital through a combination of new equity capital and
increasing and extending its debt facility in the coming
months.
Simon Cleaver, CEO, commented:
"2021 marked a return to growth following a COVID-impacted 2020.
I was delighted to see strong performances from new business sales,
existing business upsell, and customer retention combine to drive
our annualised revenue growth back over 25% as we enter 2022.
Whilst our team have delivered well in 2021 and I'm immensely
proud of what they've achieved, I'm also conscious that we are
operating in a marketplace where many of our key competitors are
materially larger and better capitalised than we are.
In the coming few months, if we remain as a listed company, we
will need to raise significant further capital to fund the group
through to our targeted monthly EBITDA breakeven in 2023.
I remain passionate about CloudCall and our team, but, given the
conflicting sentiment between shareholders that prefer growth vs
those that prefer us to push for break-even, I believe a future
capital raise from the public markets may be challenging. In
addition to this, the quantum of any fundraise will not go far to
redress this imbalance between us and certain of our
competition.
Against this background and after careful consideration, as
noted in the announcement of the offer by Xplorer Capital, the
CloudCall Board have determined that the offer by Xplorer Capital
is in the best interests of CloudCall shareholders and staff."
(3) This statement, first made in the interim results
announcement of 14 September 2021 and repeated in the scheme
document on 15 December, constitutes a profit forecast for the
purposes of Rule 28 of the Takeover Code which remains valid as of
today's date. Part 8 of the scheme document published in connection
with the offer from Xplorer Capital contains a directors'
confirmation of the basis on which such forecast has been prepared
as required by Rule 28 of the Takeover Code. As noted above, a copy
of the scheme document can be found on CloudCall's website at:
https://www.cloudcall.com/investor/offer-for-cloudcall
For further information, please contact:
CloudCall Group plc Tel: +44 (0)20 3587
Simon Cleaver, Chief Executive Officer 7188
Paul Williams, Chief Financial Officer
Canaccord Genuity Limited (Nominated Tel: +44 (0)20 7523
Adviser, Financial Adviser & Broker) 8000
Simon Bridges
James Asensio
Thomas Diehl
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
About CloudCall Group Plc
CloudCall is a software and integrated communications business
that has developed and provides a suite of cloud-based software and
communications products and services. CloudCall's products and
services are aimed at enabling organisations to leverage their
customer data to enable more effective communications and improve
performance.
The CloudCall suite of software products allows companies to
fully integrate telephony, messaging and contact centre
capabilities into their existing CRM software, enabling
communications to be made, recorded, logged and categorised from
within the CRM system with detailed activity reporting and powerful
business intelligence capable of being easily generated.
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END
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