Cloudcall expects profits to double at year end

(ShareCast News) - Cloudcall, an AIM-listed cloud-based software business that integrates voice communications into Customer Relationship Management (CRM) platforms, expects expects revenues to grow by around 50% for the year ended 31 December 2016 to around £4.9m, at an approximate 78% gross margin.Recurring revenues in the second half of 2016 increased 30%, totalling up growth for the full year at 63%.The group also continues to build its relationship with Bullhorn, a key CRM partner with increased traction with its end users.The rate of churn has hit record low levels with customer feedback on the company's products and service levels being "consistently positive".The cash balance at 31 December 2016 was around £3.2m.Chief executive Simon Cleaver said: "The strategy of focusing on key partners and mid-market customers is clearly delivering results and we are seeing significant growth in sales activity as our relationship with Bullhorn and other key partners strengthens."It's also encouraging to see that the work we undertook early in the year to improve our overall customer experience is now delivering results. The increasing levels of customer satisfaction can be evidenced by a reduction in churn rate, the excellent reviews customers are leaving on the Salesforce.com app exchange - which improves lead flow from Salesforce.com - and the growing number of customers adding additional users and services."The overall high customer retention, strong second half growth and 85% of revenues recurring gave the board confidence for 2017.The share price rose 21.09% to 78.10p at 1258 GMT on Tuesday.