What LoopUp does
In a nutshell, the company’s core software-as-a-service (SaaS) product aims to make audio conferencing a whole lot simpler, and more productive.
It uses traditional telephony supplied by tier-one operators across four centres globally, but dialling into a call with an access code isn’t the preferred method for joining LoopUp meetings.
Instead, users simply click a web link and LoopUp will then call them on the phone of their choice.
Participants in the call are then displayed onscreen so people are able to know who is currently on the call and who is talking.
Users can even share biographical details via LinkedIn as well as documents and presentations via their desktops.
How it's doing
Turnover rose 86% to £22.4mln for the first six months of 2019.
Underlying earnings (EBITDA) rose 32% to £3.5mln and the cash balance ended the half at £3.8mln, with a £1.1mln R&D tax credit expected on top.
“We continue to deliver strong underlying organic growth, albeit tempered in revenue terms during the period by macro headwinds and their impact on average usage levels,” said co-chief executives Steve Flavell and Michael Hughes.
Macroeconomic conditions, including Brexit worries and slowing global growth sparked by US trade policy, hit LoopUp by reducing the number of meetings per user, with a 7% fall to 3,147 minutes per active user.
As a result, 2019 guidance for revenue growth was trimmed to roughly 26% with underlying profit [EBITDA] margins of approximately 15%.
This is based on the “cautious assumption” that the headwinds worsen during the second half before stabilising during the coming year, said the company.
Operationally, it was a half of much progress, with major enhancements to the product, the launch of the new Event product, the extension of its operations into the US with new offices in Chicago, Dallas and LA, and an agreement to consolidate its two London offices into a new single London headquarters in Shoreditch from December.
- End to UK political uncertainties sees return to previous growth rates
- Even so, sales still expected to rise at rapid pace
- Market share continues to increase as more customers are added