LoopUp Group PLC (LON:LOOP) reported strong growth in revenues and underlying earnings for the first half of the year but adjusted its guidance amid “challenging macro headwinds”.
The remote meetings company generated turnover of £22.4mln for the first six months of the year, up 86% on last time.
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 in the results statement on Tuesday.
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.
The directors therefore said they considered it prudent to trim full-year 2019 guidance to revenue growth of roughly 26% and 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.
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.
“We have a loyal customer base that is highly engaged with our product and that is growing in spite of challenging macro headwinds, and we continue to invest in our efficient distribution engine to accelerate growth,” Flavell and Hughes said.
“We adjust our guidance for due caution in uncertain times, but remain excited and confident in our team's and product's ability to generate future growth.”