Sopheon shares down as revenue growth disappoints

AIM-listed software developer Sopheon (LON:SPE) has said that revenues for the year ended 30th June rose by 4.5%, driven by a 197% increase in cloud service bookings.

CEO Henrik Bang commented: “We have seen strong growth in our key financial metrics of Cloud services bookings and ACV as we continue to transition from a traditional software business to a growing digital cloud operation.

“The Group’s cloud services bookings exceeded traditional product sales for the full year which was mainly driven by strong Low-code sales to both new and existing customers. The combination of our powerful customer engagement software and our leading Low-code platform is a clear differentiator for Netcall in its market.

“As we continue to execute our Low-code investment plan, the Liberty business provides strong cash-flow for the Group. As a result, the Group’s cash position increased significantly in the period which combined with high recurring revenues and a strong product portfolio, gives the Board confidence in the prospects for Netcall“.

The price of Sopheon shares dropped by 12.98% to 818p (as of 12:25 BST).