CloudCall's 'standout year' sees customer growth boost revenue

(Sharecast News) - CloudCall Group reported a strong second half of the year and rising customer numbers drove a jump in annual revenue, with results in line with expectations.Total revenues at the cloud-based communication software business increased 27% in the calendar year due to a 52% year-on-year increase in US revenues and 34% growth in user numbers to over 31,300.Revenue growth accelerated in the second half of the year, growing by 19% compared to the first half, which had increased by 8% over the second half of 2017. Customer growth also accelerated towards the end of the year.Recurring revenue also grew 34% over the prior year and accelerated half-on-half as customer retention improved, though the average recurring revenue per user remained relatively static over the period at £28 per user per month.CloudCall had cash and cash reserves at £2.75m at year-end, with cash reserves decreasing roughly £1.5m in the second half of the year, compared to £2.5m in the first half of 2018.Simon Cleaver, chief executive of CloudCall, said: "2018 has been a standout year for CloudCall in terms of new product innovation and investment in our platform, and our sales and marketing capabilities."These investments originated from an equity fundraise completed in November 2017 and are expected to also contribute to a "strong start" to 2019, according to CloudCall.While 2018 saw the launch of messaging services and the enhancement of services integrated with Microsoft Dynamics 365, which is expected to deliver further growth opportunities in the current year and beyond."As we enter 2019, we have a significantly improved product, a platform that stands ready to scale more easily, a mutually beneficial partnership programme and a growing partner ecosystem. Furthermore, we have an excellent team of skilled people in place that are very excited about what the future holds," said Cleaver.CloudCall's shares were up 4.40% at 95.00p at 0926 GMT on Tuesday.