Blue Prism Group PLC (LON:PRSM) said that full-year revenue will come in towards the lower end of the £170-180mln guidance range.
The robotic process automation software specialist said that foreign exchange has hit original guidance by £2mln, while underlying losses will still be around £25mln.
Chairman and chief executive Jason Kingdon said the AIM-listed company is prioritising investment in product development, with the release of nine new products to be followed by a major platform release.
“We are still maturing the core business and remain disciplined on spend,” he said in a release.
“We are reviewing our go-to-market model and the product and service formats we offer to better align with the transformation agenda within our clients for digitisation and automation. Whilst acknowledging that Blue Prism development continues, the opportunities and commitments from our global customer base remain robust.”
In the six months to 30 April, first-half bookings climbed 35% to £98mln, with gross and net retention rates of 98% and 115% respectively.
The closing cash position was £126mln while closing annual recurring revenue was £168mln, the same as last year. Blue Prism Cloud represented 22% of new bookings, an increase of 65% on the prior period.
Analysts at Shore Capital said the company posted “creditable” performance, given the ongoing impact of lockdown on business confidence generally.
“The update on product development, coupled to the full year outlook being in line with market consensus expectations, suggests to us that today’s trading update will be taken by the market as a reassuring and potentially positive print, especially given the relatively negative sentiment on the stock in the run up to today’s announcement,” they noted.
“We continue to see the shares as both rationally and attractively valued with good upside potential over the medium term driven by strong equity rating compression.”
Shares dipped 3% to 1,042p on Monday at the opening bell.