LoopUp Group PLC (LON:LOOP) has said it is trading “materially ahead of expectations” as the coronavirus pandemic lockdown measures drive a migration to remote working and demand for its virtual meeting products.
In a trading update, the AIM-listed firm said revenue in the year-to-date from January to April was at least 40% higher year-on-year as existing customers increased their use of its products and new clients switched to the service from other providers.
READ: LoopUp spins higher highlights ‘material increase in volumes’ as coronavirus drives demand for virtual meeting tech
LoopUp also said it had seen increased usage of its multimedia capabilities, including a “disproportionality high increase” in video usage and more events using its 'Event by LoopUp' platform.
As a result, the company now expects its underlying earnings (EBITDA) to be higher than the same period last year, while since mid-March the firm said its pre-revenue business indicators were strong with inbound leads running at four times pre-outbreak levels and new customer contracts signed at around double levels before the pandemic.
Looking further ahead, LoopUp said it is “confident of exceeding current market expectations in terms of revenue, EBITDA and cash generation” for its current financial year, although it said it is difficult to provide specific guidance given the ongoing uncertainty.
“We are incredibly proud to be helping our customers with their business-critical communications in these challenging times, by providing simple, reliable and secure products that are diligently operated and supported…We experienced one day when our business volumes increased more in that single day than in the first 10 years of the company's life”, LoopUp co-chief executives Steve Flavell and Michael Hughes said in the statement.
“The team has delivered a resilient platform that has stood firm with no major service outages, as well as maintaining their high standards of customer care in the face of heavily elevated demand and volumes across our operations", they added.
The upbeat trading statement drove LoopUp shares 16.3% higher to 146p in early deals on Wednesday.