Cloudcall’s cash burn drags down shares

AIM-listed communications and CRM software specialist Cloudcall (LON:CALL) watched its share price drop by 16.92% to 86.40p (as of 12:50 GMT) despite revenues for the year ended 31st December rising by 28%. EBITDA losses climbed by 50% as the firm continued to execute an investment heavy strategy.

CEO Simon Cleaver commented: “The investments that we have made, and are continuing to make in our 4 key growth pillars have, as expected, increased our operating costs and cash-burn, but were always likely to have only limited impact on 2018 revenues. Despite this, we were delighted to see ourselves, for the second year running, positioned as one of the UK’s fasted growing tech companies by the Financial Times.

I am, however, hugely encouraged to see the early impact of those investments coming through towards the end of the year. With this investment ongoing, and accelerating in some key areas, having effectively removed some of the cash constraints from the business with successful placings in late 2017 and early 2019, we are well placed to deliver on our growth plans with a high degree of confidence in the future“.