GetBusy Plc (LON:GETB) saw its shares rise on Tuesday after the business software firm said it expects a jump in 2018 revenues as the strong trading seen in the first half of 2018, continued in the second half at a similar pace.
In a trading update for the year ended 31 December 2018, the AIM-listed group said it expects to report that total revenue increased by approximately 20% to £10.9mln on a constant currency basis.
The company added that its 2018 adjusted underlying earnings (EBITDA) is expected to be in-line with expectations, while cash as at 31 December 2018 was substantially better than expected at £2.5mln, compared to £2.4mln at 30 June 2018.
It added that growth in the group's high-quality recurring subscription revenue, at constant currency for the full year, was 22% with the UK growth rate accelerating to 17% following strong order intake and the transition to a pure subscription model.
Annualised monthly recurring revenue at 31 December 2018 was £10.3mln, an increase of 19% at constant currency, the firm continued.
2019 looks set to be an exciting year."
Daniel Rabie, GetBusy’s CEO, commented: "Recurring revenue from Virtual Cabinet and SmartVault has continued to grow at strong rates due to the combined impact of favourable LTV:CAC ratios, low net MRR churn and a well-executed GDPR campaign.”
He added: “We're well progressed with the migration of SmartVault to AWS, which will contribute to the product being as scalable as its transactional business model. And we've moved into an exciting phase for our new product, GetBusy, with the launch of the new website and public beta.”
Rabie concluded: "As we look ahead to 2019, we will continue to invest in the growth of high quality recurring subscription revenues from SmartVault and Virtual Cabinet
“As the volume of beta users for GetBusy increases we will continue to learn from the data we gather and iterate the product and marketing strategy accordingly. 2019 looks set to be an exciting year."
The group expects to announce its final results for the year ended 31 December 2018 on 5 March 2019.