Overstated impact of Office Work31 Aug 2021 12:23
Much has been made of the home-working impact on Loopup growth and the concern that a return to the office will be detrimental.
Why should it when Loopup had their customers prior to C19 and have not gained anything additional to lose as home/office work is rebalanced!
I'm not convinced it is a risk for Loopup, in fact evidence suggests it will make little if no difference and could be the change to drive new PS business as companies regain stability.
First on the core Meetings side, we actually achieved no persistent growth during the lockdowns (shrunk after) and what it really did was cause companies to consider their provision and needs - that in turn caused some, particularly less discerning customers, to switch DOWN to largely cheaper services and we have been suffering as a result. Lookup appear to have decided those cost driven customers who have already walked are not worth fighting over as there are bigger fish to fry, who presumably value the cost and Quality of Service. That transition is still going on and Loopup has stated that many companies had delayed corporate change during the height of the pandemic so we have to assume there is going to be further activity hopefully including more contract wins based on latent demand. However, I do think the problems experienced in the last year or so are down to the screwed up integration of MeetingZone which should now be settled - this has not been factored in by almost all observers (even though the company advised they would likely lose customers because of it) - it is not as simple as Zoom and others undercutting us.
Most importantly, WRT to our new Cloud strategy, there is no evidence or reason to believe a return to office will impact growth, on the contrary, evidence and Loopup statements suggests companies that where delaying decisions in the uncertainty will now go-ahead (our growing Pipeline and conversion rate backs this up).
Like all shareholders I'm very interested in future potential so do whatever I can to validate my viewpoint, so I had a look at the Microsoft CEO comments from earlier in the year wrt the growth of Teams, apparently he said that:
"“In markets where employees have returned to the workplace, including Australia, China, New Zealand, South Korea, and Taiwan, we have seen usage continue to grow,” he said."
That is great news for Loopup as we pick it looks like our success will be linked to Microsoft's.
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