CloudCall hails 'robust' first-half trading but growth slows
Cloud-based software business CloudCall witnessed "robust trading and growth" in the first half as total and recurring revenues both improved year-on-year, although the rate of user and revenue growth slowed.
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CloudCall expects to report revenues of £4.1m, an increase of 31% against the same period a year earlier while recurring revenues were projected to have improved 37%. This is down from the revenue growth of 42% in 2017.
During the half, CloudCall continued to see growing demand for its products and services from both new and existing customers, with net new users climbing at an average rate of 580 per month, taking its total number of users at the end of the period to 27,000, a 34% improvement against the first six months of 2017. That growth rate was also below the 45% achieved in 2017.
CloudCall shares were down 10.6% to 138.5p at by afternoon on Tuesday.
The AIM-listed outfit said its strategy of focusing on key CRM partnerships in the recruitment and staffing sector had continued to drive growth after making "significant investment" into developing new business sales and marketing capabilities at its recently opened London sales office.
"Whilst it took slightly longer than anticipated to recruit and train this initial nine sector specialist sales staff, they have now all completed their training and are building pipeline and beginning to close new business," said CloudCall.
The AIM-listed firm expects to see its new team members' contribution show through in user and revenue growth by the time it delivers its full-year trading statement early in 2019.
Simon Cleaver, chief executive of CloudCall, said: "Solid and consistent growth in our sales numbers has continued, whilst we put the foundations in place that we expect to underpin further growth by making excellent progress with ongoing investments in our new integrated Unified Communications service and the expansion of our sales teams with high calibre, sector experienced staff."