What LoopUp does
In a nutshell, the company’s core software-as-a-service (SaaS) product aims to make remote conferencing a whole lot simpler, and more productive.
It uses traditional telephony supplied by tier-one operators across four centres globally, but dialling into a call with an access code isn’t the preferred method for joining LoopUp meetings.
Instead, users simply click a web link and LoopUp will then call them on the phone of their choice.
Participants in the call are then displayed onscreen so people are able to know who is currently on the call and who is talking.
Users can even share biographical details via LinkedIn as well as documents and presentations via their desktops
LoopUp works with more than 20 of the world’s top-100 law firms and over 20 of the world’s top-100 private equity firms.
How it is doing
LoopUp said the migration to remote working during the coronavirus pandemic sparked a surge in demand for its conference call and remote working services.
For the six months ended June 30, 2020, adjusted underlying earnings (EBITDA) rocketed 247% to GBP12.2mln, while revenues jumped 43% to GBP31.9mln. The company highlighted a “material increase” in demand for its core products, revenues from which grew 54% in the period to GBP27.9mln.
Looking ahead, the company highlighted “enhanced forward revenue visibility” following a material migration to committed term contracts, with 30% of LoopUp’s business coming from committed terms deals at the end of the six months as opposed to 13% at the start of the year.
However, the firm also said a “high degree of instability” caused by the pandemic made it “difficult to provide more specific guidance on near-term market expectations”, although it said it is “confident in its ability to drive attractive, sustainable and profitable growth, and intends to invest from its cash balance to maximise shareholder value creation”.
In July it extended its flagship solution, LoopUp, to include global cloud voice services via direct route integration with Microsoft Teams alongside its premium remote meetings capability.
What the bosses say: Steve Flavell and Michael Hughes, co-CEOs
“It has been a strong and incredibly busy first half for our business as [coronavirus] has accelerated changes in working habits. We’re 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.”
“With change comes opportunity, and we’re embracing this opportunity with our recent product expansion into global cloud telephony integration for Microsoft Teams. Early market reactions to our differentiated implementation have been highly encouraging, and we’re confident in our ability to generate strong, profitable growth in this vibrant market that is set to grow from US$3.5bn to US$10.4bn over the next four years. We have a balance sheet that enables us to invest for growth and we’re excited and focussed.”
What the broker says
Analysts at Progressive Equity Research said Loop Up had delivered a “highly profitable and enormously cash generative” first half which had in turn allowed the company to “invest in the major identified new opportunity, to provide telephony within Microsoft Teams, where the early signs are extremely positive.
The broker also said going forward it will “loom for further evidence…around the long-term shape of the LoopUp Meetings revenue base as volumes stabilise, and the style and pace of Teams revenue growth as the business pipeline converts”.
- COVID-19 restrictions have driven a surge in usage of Loopup’s service
- Market share continues to increase as more customers are added
- Remote conferencing set to become a feature of working life after COVID-19