CloudCall recurring revenues up 63%

CloudCall says that as a result of its strategy to focus on key CRM channel partners in order to accelerate product penetration, it expects to report revenue growth in 2016 of circa 50% over the prior year to approximately £4.9 million, at circa 78% gross margin. Recurring revenue in the second half of 2016 increased 30% against H1 2016, which had already seen a 25% increase on H2 2015, resulting in a total recurring revenue growth of 63% for the full year.

The group says it continues to make good progress with Bullhorn, a key CRM partner, and is seeing increased traction with Bullhorn's end users.

It says there has been a continued reduction in the rate of churn, which is now at record low levels and customer feedback on CloudCall's products and service levels remains consistently positive.

Chief executive Simon Cleaver said: "The strategy of focussing on key partners and mid-market customers is clearly delivering results and we are seeing significant growth in sales activity as our relationship with Bullhorn and other key partners strengthens.

"It's also encouraging to see that the work we undertook early in the year to improve our overall customer experience is now delivering results. The increasing levels of customer satisfaction can be evidenced by a reduction in churn rate, the excellent reviews customers are leaving on the app exchange - which improves lead flow from - and the growing number of customers adding additional users and services. "The combined effect of these factors resulted in a marked increase in recurring revenue and sales to both new and existing customers in the latter part of 2016 which provides a very solid base for 2017."