(Sharecast News) - Shares in LoopUp Group plunged on Tuesday as it reported an increase in interim losses and revised its guidance downwards due to a volatile macro environment.
The remote meetings technology company recorded a loss before tax of £0.5m for the six months ended 30 June, compared to a loss of £0.2m during the same period the year before, as its cost of sales increased by 141% to £7.4m and adjusted operating expenses climbed by 82% to £11.4m.
Those higher costs more than offset an 86% jump in revenue as active users on the AIM traded company's platform rose by 14% to 65,321.
LoopUp said rising macroeconomic headwinds resulted in a 7% decline in usage per active user to 3,147 minutes, while first half revenue from the company's established customer base declined at a 8% year-on-year pace.
Consequently, full year to revenue growth guidance was revised down to approximately 26%, while EBITDA margins were now forecast at approximately 15% based on an assumption that headwinds will strengthen even further during the second half before stabilising in 2020.
Steve Flavell and Michael Hughes, co-chief executives of LoopUp, said: "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. 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."
25 Mar 2024 13:29