LoopUp Group PLC (LON:LOOP) said its core Professional Services (PS) Meetings and Events business has continued to trade robustly versus pre-pandemic levels.
The audio meetings technology specialist said it has also continued to see strong momentum in its Cloud Telephony business, which was launched on its global cloud platform in July.
Things are a bit tougher in the non-PS sectors, where the company said the churn rate – the frequency of customers defecting to rival services – is accelerating.
LoopUp noted that the non-PS business now forms just 14% of the group’s total revenue and the tough trading conditions in this arena is likely to have a less significant impact as the months go by, with the group sticking with its plan to focus on the PS sectors.
However, as a result of the ultra-competitive nature of the non-PS market, the group now expects full-year revenue and underlying earnings (EBITDA) will be a tad below current market expectations.
The former is expected to be no less than £50mln - up by around 18% year-on-year - while EBITDA should be no lower than £15mln - up 134% or so on last year.
The group's annualised revenue run-rate (ARR) currently stands at around £34mln, made up of about £28mln of LoopUp Platform capabilities (Meetings, Cloud Telephony and Events) and roughly £6mln of Cisco resale, which represents an estimated entry ARR for fiscal 2021 trading.
In its core market, LoopUp remains confident of its ability to drive attractive, sustainable and profitable growth of its higher-priced external cloud communications platform.
