Cloudcall revenues rise as recruitment sector recovers

(Sharecast News) - Cloud-based communications technology company Cloudcall reported a 10.4% improvement in total revenues in its first half on Tuesday, to £6.4m, with recurring and repeating revenues representing 93.9% of the total.
The AIM-traded firm said that on a constant currency basis, total revenues were ahead 13.4% year-on-year for the six months ended 30 June.

Its annualised run-rate revenue was 25% firmer, at £13.8m on a constant currency basis, while its gross margin improved to 81.2%, from 80.2% in the first half of 2020.

Gross cash balances stood at £8.4m at period end, with a further £2m available to be drawn from its debt facility, and another £1.0m expected from research and development tax credits in the coming weeks.

Cloudcall said that a "strong recovery" in the recruitment sector was driving the acceleration of new business sales growth across the first half, adding that its software-as-a-service (SaaS) metrics were "improving", demonstrating the effectiveness of its customer relationship management (CRM)-based go-to-market strategy.

The board said the firm was in a "strong position", explaining that with operating expenses carefully controlled and tracking in line with plans, it was on track to deliver on its full-year guidance.

"For Cloudcall and many of our customers, 2020 was a challenging year, but I'm pleased to say that now seems firmly behind us and the business is once again thriving," said chief executive officer Simon Cleaver.

"The recruitment sector, which represents over 50% of our revenues, has bounced back at an astonishing rate and sales to new customers have been accelerating throughout the first and second quarters, [and] we've also witnessed considerable growth from our customer base who have been increasing the services they buy from us.

"Many of our key performance indicators are now running well above pre-Covid-19 levels, which provides confidence in achieving our targets for the full year."

At 1400 BST, shares in Cloudcall Group were down 0.76% at 65p.