Netcall PLC -Trading Update and Notice of Results
The Board anticipates first-half revenues of approximately £11.4m (H1 2017: £10.7m) and adjusted EBITDA(1) of approximately £2.0m.
Cloud and product bookings(2) in the period increased by 96% year over year 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 ('ACV')(3) of new cloud bookings exceeded product sales for the first time in a six month reporting period.
Total Low-code ACV as at 31 December 2018 increased by 40% year over year to £4.2m (H1 2017: £3.0m) and the total ACV increased by 10% year over year to £15.1m (H1 2017: £13.7m).
The Group held cash of £5.8m and net debt was £0.8m as at 31 December 2018.
Henrik Bang, Chief Executive, said:
"We have seen double-digit growth in our key financial measures of order bookings and Annual Contract Value. This was driven by strong growth in Low-code sales, increasing the forward visibility of our revenue.
"Accelerated investment into our cloud Low-code offering is further enhancing our ability to address considerable and growing demand for our 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."
Notice of Results
Netcall will be announcing interim results for the six-month period ended 31 December 2018 on 5 March 2019.