Key Performance Indicators update

7th April 2014

Synety Group plc

("the Group" or "the Company")

Key Performance Indicators (KPIs) Update

for the first quarter ending 31 March 2014

and launch of CloudCall Campaigns

Key Performance Indicators (KPIs) Update

· 44% increase in End Users

· 47% increase in Annualised Recurring Revenue

· 52% Increase in Licences Ordered

The Group is delighted to report significant growth for the first quarter ending 31st March 2014 with a near 50% increase in many of the Company's KPIs.

During the same period, the Group also announced integrations with the following CRM companies further increasing Synety's addressable market.

Simon Cleaver, Synety's Executive Chairman, commented: "We're obviously very pleased with the growth achieved in the 1st quarter and our confident outlook remains unchanged."

Launch of CloudCall Campaigns

SYNETY also announces the launch of its new Automated Call Distribution and Dialler technology known as 'CloudCall Campaigns'.

As an enhancement of SYNETY's flagship product CloudCall Contact Centre, CloudCall Campaigns is designed to help businesses increase sales activity and improve customer service.

CloudCall Campaigns automates the dialling process so that Sales staff (agents) can be presented with their next call automatically. On completion of a call, the system provides a short interval for notes to be taken (known as 'wrap up') before automatically dialling the next number on the list.

Known in the telecommunications industry as a 'preview' or 'power dialler', CloudCall Campaigns removes the wait time between calls and can significantly improve productivity for Sales Teams - typically use of this type of technology will double an agent's available time to spend on the phone.

CloudCall Campaigns also includes a call-blending functionality which further increases productivity by optimising how inbound and outbound calls are prioritised and delivered to Agents.

This type of sophisticated automated call handling system has traditionally only been available in high-end costly call centre solutions. The key difference for SYNETY's CloudCall Campaigns is that it can deliver this advanced functionality out of any existing integrated CRM system and included within Synety's CloudCall Contact Centre service.

Mark Seemann, SYNETY's CEO commented "By launching CloudCall Campaigns we have considerably enhanced the benefits of a product which was already popular within its market. Our CloudCall Contact Centre product now allows any business to operate their telephony within their CRM with the sophisticated functionality of a large scale call centre.

"We're excited to be adding CloudCall Campaigns to our suite of products and services and I'm confident that it will help SYNETY attract larger customers who tend to have more demanding communication requirements."

Further information

Key Performance Indicators Definitions

Number of End Users (sometimes denoted as 'seats') is defined as the actual number of individual users licenced to access the CloudCall platform.

A licence is a customer agreement to pay monthly fees (occasionally annually) for the use of a Synety package or service. Example of licences include; CloudCall Click, Unlimited UK landlines calls package, extended call recording (7 year option) etc. An 'End User' may purchase multiple licences depending upon the services that they subscribe to.

This is simply the average customer size calculated as the number of End Users divided by the number of customers. 

ARR is a forward looking number based on products sold to date. To calculate the ARR, we strip out any one-off invoices such as set-up, hardware sales or professional fees and simply take the ongoing monthly recurring licence fees customers have subscribed for and add in the projected telecommunications income (average daily telecommunications spend X working days in an average month). This figure is then multiplied by 12 to give the expected annual recurring revenue.

The Board believes that this is the clearest way of expressing the underlying annualised recurring revenue as it levels out inconsistencies that may be caused by how many working days there are in any particular month- telecoms revenues that are not included in any calling package, are particularly sensitive to these fluctuations. It further removes any anomalies that may be introduced by large customers coming on-stream partway through the month which lower the ARPU since they are only billed for a partial month.

This figure is not simply the ARR divided by the number of End Users. RRPU is calculated by combining the actual billed subscription revenue with the monthly subscription fees ordered, together with an estimate of the related telecommunications spend (eliminating any one-off billings) and dividing by number of End Users. To reduce the effects of monthly variations, RRPU published is the average RRPU of the preceding three months.