(Alliance News) - LoopUp Group PLC on Tuesday revised annual guidance amid a "volatile" macro-environment as its loss widened in the first half of 2019.
The remote meetings company reported a pretax loss of GBP478,000 for the six months to the end of June compared to a GBP220,000 loss reported a year earlier, as operating expenses almost doubled to GBP11.5 million from GBP6.3 million.
Revenue meanwhile rose by 86% to GBP22.4 million from GBP12.0 million, as active users on the LoopUp platform were up 14% to 65,321 from 57,490 year-on-year.
However, the company noted it is experiencing challenging macro headwinds, with a 7% decline in usage per active user to 3,147 minutes in the period from 3,371 minutes a year ago. Product pricing remained stable at GBP0.054 per minute.
LoopUp said it has made major enhancements to its existing product, including the addition of a differentiated implementation of video, launched a new product and event, and extended its operations into the US market.
In addition, the company introduced a standard group-wide staff grading and remuneration structure, a new HR system, opened four new offices in Chicago, Dallas, Los Angeles and Madrid, and concluded arrangements for a new London headquarters in Shoreditch.
"We have a loyal customer base that is highly engaged with our product and that is growing in spite of challenging macro headwinds, and we continue to invest in our efficient distribution engine to accelerate growth," said co-Chief Executives Steve Flavell and Michael Hughes.
"We adjust our guidance for due caution in uncertain times, but remain excited and confident in our team's and product's ability to generate future growth," added Flavell and Hughes.
The company now expects revenue growth for 2019 to be 26% and earnings before interest, taxes, depreciation, and amortization margins at 15%. In 2018, LoopUp's revenue totalled GBP34.2 million, meaning it expects an increase to about GBP43 million.
LoopUp shares were trading 22% lower on Tuesday in London at 80.00 pence each.
