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Think quantifying the true extent is not that easy but the significant take up in teams seems based in mature PC operating organisations ..... Some may say traditional but this is good news as they are the companies still with higher telephony costs which will be looking to take advantage !!!!! This may also involve significant government based operations , NHS and the likes & thus the full scope is much more 3d than your suggested 12k!!! First step is converting the current high value users to both increase revenue whilst increasing committment
Thordon I believe Loopup has around 5,000 customers. Average revenue of around £10k per customer. Of these only 120 are the large enterprise type customers with average revenue of about £23k which Loop would be targeting under the Teams deal. My guess is that these mostly relate to Skype for Business given Teams has only just started.
I don't think the majority of Teams customers have the global footprint or external advisor network that Loop would be targeting in a customer. I think these are the target market. So for every 100 customers Loop wins that would be £2m in revenue.
But how many companies still use Skype? My guess is not many. I'm going to make an assumption and say there are 10x as many Teams as Skype users, so I would say the target market is more like 12,000 global enterprise customers for a total revenue opportunity of £24m or £10m EBITDA.
All a huge guess but just trying to work though the maximum scale of the opportunity.
You may also reflect that Cisco deal is at present much larger in value terms than Microsoft Teams . However the re-branding of Loopup web site indicate that Microsoft Teams is front runner.
without the data we are blind to the facts except turnover and gross profit + debt.
loopup if they achieve just 1% of Microsoft Teams that 750K customers , Microsoft teams is mostly free with there main product.
Verdict - Loopup will be around a long time as no other company went this route and all because they over spent and had no option too, so went for the niche market.
Anyway good luck . Long term investor need 800p to break even on my bad investments 20 years ago.
Not that bad started investing again last year and nearly cried in April but invested by luck and research in covid 19 shares.
Welcome Bricks. My prediction is 360p in 6-12 months, which is 10x 2020 EBITDA of £20m. This is more bullish than consensus but my guess is as good as theirs as I think what we are witnessing is a burgeoning remote working movement which will structurally drive a rebased level of revenue. The 3 key questions for me in hitting this target are:
- can they keep the new customers they have won during lockdown? How sticky is revenue... in the past churn was very low, until last year that is
- where will growth come from... new clients, volumes from existing customers as the economy recovers, Teams!
- will they control costs to drive operational leverage and increase the EBITDA margin. They hit high 30s in H1 with 3 full months of lockdown and very suppressed business activity. H2 could see 40%.
I'll be keeping my eye on these measures and topping up opportunistically. Enjoy the ride
Thanks for the update guys...
Must say very positive to see a stock do 50%+ in the last month, yet the BB is not full with rampy posts about how itl multibag this time next week...
Genuine solid stock, genuine investors, more to come...
Wonder if the call last week has made Jupiter reconsider it's recent reductions ??
Thought it was worth posting the whole article - game changer right enough...
"After months of hard work by many colleagues across the firm, we finally launched our global cloud communication solution this week! Our service uses Direct Routing to connect Microsoft Teams users to LoopUp’s global voice network.
It’s a complete telephony solution – users can make and receive voice calls directly from Teams on any device from anywhere in the world, and they can retain their existing phone number. It allows our customers to move all users to a consistent cloud-based telephony platform, eliminating the need for on-premises PBX equipment and local carrier relationships.
Working habits are always evolving, but we’ve seen a rapid acceleration in the trend towards remote working in response to COVID-19, and we think these changes are permanent. We’re seeing the use of Microsoft Teams for internal collaboration increasing exponentially, with daily active users rising by 70% to 75 million in the last two months.
But to date, few large businesses have integrated Teams with telephony. Many of our customers have told us that they are actively considering this. Doing so makes sense because it simplifies operations, reduces cost, and aligns the user experience for internal and external communications.
We’re well positioned to meet their cloud communications needs. The LoopUp premium global voice network – built over the last 15 years for the stringent demands of professional services clients – integrates 13 tier-1 regional carriers from around the world over a resilient backbone. This allows real-time carrier selection and redundancy so we can optimise call quality, reliability and cost for our customers.
We have the global reach to provide a fully managed service to the largest multinationals, with 24/7 multi-lingual support and local account management from 15 offices on four continents. Our Enablit business unit – a certified Microsoft Gold partner – has the expertise to deliver a seamless and secure transition from legacy systems to cloud communications. It has specialised in Microsoft voice solutions since 2010, working with OCS, Lync, Skype for Business and now Teams.
We have a proven track record with Microsoft voice solutions, and we already provide cloud voice via Teams or Skype for Business to more than 120 enterprise customers. We’ve previously offered this on a limited geographic basis, but by adding cloud voice to our core product alongside premium remote meetings, we are making our cloud communication solution available globally – offered as a single monthly user subscription. Of course, our best-in-class remote meetings product continues to be available as a standalone solution too!"
massive game changer for loopup , main stream for the big boys
LoopUp now offers a full telephony solution! We connect Microsoft Teams users to our global voice network using Direct Routing, allowing them to make and receive calls and retain their existing number. Read more here: https://bit.ly/3fny6ZE
Should expect a trading update in two weeks , also with the trades today would appear a large buyer holding back the share price.
a practice we have see multiple times
No prediction but with Teams tie up they will be flying !! Commentators had questioned where next and how could they scale up !! Flavell had the answer up his sleeve and played the river with their telecoms relationships rather than some bolt on!! It's now a footrace but with such a low cost base , vanishing debt and massive low cost gearing option it looks like a left turn into first class whilst the rest are in cattle class fighting over numbers!! All IMHO but with 2020 set to change working practises loop are out of the blocks sharp
Purely going off charts, indicators bode well not to mention positive to see fridays rise not sold into, in fact more buying pressure...
Anyone care to fill me in with the story, where we at? what we expecting from here? Etc...
Thanks in advance...