10th Jan 2022 15:47
(Alliance News) - CloudCall on Monday reported a strong rise in revenue for 2021, was in line with market expectations, amid good customer retention.
Leicester-based customer management software business has reported full-year revenue for 2021 of GBP13.6 million, up 15% from GBP11.8 million in 2020. The cash foreign exchange adjusted for revenue growth would be 15%, with recurring and repeating revenues making up 94% of the total, roughly the same as 2020 where they made up 95%.
CloudCall said the boost is due to strong sales to the staffing and recruitment sector in the middle of last year, as well as upsells to existing customers.
Owing to a retention rate of over 100% in 2021, new business sales, and strong software as a service metrics, closing annualised run-rate revenue for the company grew by 25% to GBP15.3 million, after 2020 saw GBP12.2 million.
The customer base has grown by 12% to 1,658 customers, up from 1,480 in 2020.
The company predicts earnings before interest, tax, depreciation and amortisation losses to be slightly lower than previous guidance. The board has restated its ambition to achieve monthly Ebitda break-even by mid-2023, however, this will require "significant further capital".
Venture capital fund, Xplorer Capital Growth I LLC, is poised to take over Cloudcall in a GBP39.9 million cash deal, set for completion in the first quarter of 2022.
Cloudcall Chief Executive Officer, Simon Cleaver reiterated support for the deal stating that "raising future capital from public markets may be challenging given the conflicting sentiment between shareholders that prefer growth vs those that prefer [the company] to push for break-even".
Cloudcall's share price dropped by 0.6% to 79.00 pence each during Monday afternoon trading in London.
The SaaS company plans to continue investment into its internal systems in 2022, deploying sales and provisioning tools to improve customer engagement processes. It reported that investment into delivery and support functions in 2021 has already yielded benefits. The company also released a beta version of a mobile app in 2021, and expects a full release in early 2022.
By Elizabeth Winter; [email protected]
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