Losses have widened at CloudCall, the cloud-based software business, according to full year results for the year ended 31 December 2020.
While revenue at the Leicester-headquartered business rose by 4% in 2020 to £11.8m, compared to £11.4m in FY 2019, the company posted a loss before tax of £6.7m, in comparison to a loss of £3.6m in 2019.
Simon Cleaver, Chief Executive Officer of CloudCall said: “Despite the challenges we faced in 2020 as the ramifications of COVID-19 became clear, I am delighted to report that the recovery from the initial impact to our customers and prospects was strong, effectively giving us a “deep V” shape to the year.
“Indeed, I was particularly pleased to note that many of our sales KPIs were stronger post-COVID than they were pre-COVID, demonstrating the effectiveness of CloudCall’s CRM-based go-to-market strategy and increasing product market fit as the pandemic accelerates the trend towards remote working.
“Whilst COVID-19 continues to impact the broader global economic environment, I am pleased to report that we have been hard at work strengthening the business with considerable investments in sales and marketing, our senior management team and our internal tools and processes, all of which improve our scalability and readiness to drive forward as the markets return.
“We have already seen the benefits of these investments in H2 2020 and the Group has made an encouraging start to 2021.
“The Board is prudently optimistic for the future of CloudCall, given its compelling and relevant offering for dispersed workforces, and the relatively limited impact that the most recent UK lockdowns have had on the business thus far.
“The improved performance during H2 2020 with its 12% growth in monthly recurring revenue and a robust pipeline of new sales opportunities reinforces this optimism, however, the Board is mindful that the lost momentum from the first half of 2020 does mean that CloudCall’s growth strategy has essentially been delayed by approximately one year.
“Given the growth momentum generated in H2 2020, the Board is confident that the Group will be able to deliver revenue of £14m in 2021 representing growth of 18%.
“This return to stronger growth, together with a strengthened balance sheet as a result of the recently completed placing, means that the Board also remains confident in its ambition to now reach monthly EBITDA breakeven by mid-2023 and achieve a £50m revenue run-rate during 2026.”