Netcall pleased with progress in switch to cloud-based model

29th Jan 2019 15:09

(Sharecast News) - Low-code and customer engagement software provider Netcall updated the market on its trading for the six months ended 31 December on Tuesday, saying it anticipated first-half revenues of around £11.4m, up from £10.7m year-on-year, and adjusted EBITDA of approximately £2.0m.The AIM-traded firm said cloud and product bookings in the period increased by 96% to £5.2m, of which cloud alone increased by 818% to £4.0m.As a result, the group - in line with its strategy - reached an inflection point where the annual contract value of new cloud bookings exceeded product sales for the first time in a six month reporting period.Total low-code annual contract value as at 31 December rose 40% year-on-year to £4.2m, the board aid, and the total annual contract value improved 10% to £15.1m.The group held cash of £5.8m, and net debt was £0.8m, as at 31 December."We have seen double-digit growth in our key financial measures of order bookings and annual contract value," said chief executive Henrik Bang."This was driven by strong growth in low-code sales, increasing the forward visibility of our revenue."Bang said accelerated investment into the firm's cloud low-code offering was further enhancing its ability to address "considerable and growing" demand for its full range of customer engagement solutions."We have seen substantial growth in our cloud business over the period and signed a number of notable multi-year contracts."We are trading in line with our expectations for the year."As a result of the transition to a cloud-based recurring revenue model, and the timing of product sales, the board expects revenues for the year to be more weighted toward the second half."Netcall said it would announce its interim results for the six months ended 31 December on 5 March.