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LoopUp’s warning impacts investment case

A London-based premium remote conference meetings group is transitioning into a broader cloud platform services communications business, but growth in cloud telephony is yet to hit the critical mass to offset the decline in the meeting business.
LoopUp’s warning impacts investment case
  • Intense pressure on remote meetings business means first half revenue will be 13 per cent below budget and analysts reduce full-year estimates by 35 per cent.
  • Analysts slash 2021 cash profit estimates by 78 per cent from £5.9m to £1.3m.
  • Cloud telephony customer base rises five-fold since late March.
  • Negotiations on cloud telephony contracts worth £20m at advanced stage.

A pre-close trading update from LoopUp (LOOP:54p), a London-based premium remote conference meetings company, highlights the ongoing transition of the group into a broader cloud platform services communications business.

Cloud telephony facilitates greater remote and hybrid working flexible compared with legacy on premise systems. The $15.8bn (£11.5bn) market is growing rapidly with analysts at Wainhouse Research predicting it will be worth $26bn by 2024. LoopUp's existing cloud telephony business, an expertise in Microsoft voice technology, and a differentiated voice architecture, provide the foundation to tap into this market growth as an add-on capability to Microsoft Teams. The advantages for end users is a unified calling experience, rather than using Teams for internal calls and a separate legacy system for external calls, and the ability to use the Teams app on any internet-connected device to make and receive calls. Essentially an employee’s direct dial business number travels with them.

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