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Blue Prism drives upselling rates

The robotics software specialist has been driving sales by upselling and extending its customer base
Blue Prism drives upselling rates

Robotics/AI are often cited alongside biotechnology and fintech as among the most likely drivers of wealth creation over the next decade. The market concurs judging by the share price performance of Blue Prism (PRSM) following release of full-year figures detailing a surge in revenues, record second-half performance across its key geographies, and customer numbers up to 1,677 from 992 in the previous year.

IC TIP: Hold at 1601p

The company, which specialises in robotics software, has been investing heavily in new staff and marketing. This more than doubled operating expenses over the period, but that is set against a successful upselling campaign. Tellingly, recurring licence revenue accounted for 96 per cent of the top line, while upsells represented 72 per cent of new monthly recurring revenue. The drive for scale comes at a cost. The range of new commitments translated into an adjusted cash loss of £71.9m against negative £21.6m in FY2018.

Numis Securities is guiding for an earnings loss of 66.7p for the October 2020 year-end, falling to negative 10.1p in FY2021. 

BLUE PRISM (PRSM)   
ORD PRICE:1,815pMARKET VALUE:£1.47bn
TOUCH:1,814p-1,817p12-MONTH HIGH:2,030pLOW: 774p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:118p*NET CASH:£74.1m **
Year to 31 OctTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20156.10-0.70-2.60nil
20169.60-5.20-10.5nil
201724.5-10.1-16.7nil
201855.2-26.0-40.0nil
2019101-80.7-105nil
% change+83---
Ex-div:-   
Payment:-   
*Includes intangible assets of £65.7m, or 81p a share. **Cash includes cash on deposit classified as short-term investments.