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LoopUp Group Floats on AIM Stock Market

Co Founder and Co-CEO Steve Flavell

Maybe you haven’t heard of LoopUp. It’s not your fault: a multitude of Conferencing-as-a-Service companies have appeared on the conferencing horizon, flooding the view.

But this one is now shining like a star.

LoopUp Group will begin trading on AIM, a market operated by London Stock Exchange--and this will open up substantial investments from institutional and professional investors.

Going public to sell stock demands a private company shares a lot of business information that’s normally confidential-- and we are sharing that info with you here. It’s an interesting inside look at the internal metrics of a SaaS conferencing provider.

LoopUp is a Software-as-a-Service (SaaS) conferencing solution for remote enterprise meetings. LoopUp promotes itself as “designed to eliminate common frustrations associated with conference calls to deliver a premium remote meeting experience for mainstream business users.”

The Group operates in the outsourced conferencing services market, which it expects to be worth £4.7 billion in 2015 and grow to £5.1 billion by 2018.

Conference calling and remote meetings were forecast to account for 165 billion minutes of business activity in 2015, and this volume is forecast to grow at 15% per annum. Yet the typical user experience on these calls is generally perceived to be frustrating. The Directors believe there is significant opportunity to take advantage of this large, dissatisfied market (approximately £14 billion of time is wasted each year in the UK and US alone) and the Group’s track record of customer growth and user adoption “demonstrates the market’s appetite for a better approach.”

The Group has a strong track record of high recurring revenue growth.

Revenue from the LoopUp product was £9.2 million out of the Group’s total £10.1 million in FY2015, a 36% year-on-year increase.

Average daily LoopUp revenue has grown over the last 16 consecutive quarters. New recurring revenue is secured 25% more efficiently than the SaaS benchmark and the Group has been EBITDA profitable since Q4 2013.

Additionally, revenue from the Group’s established base of customers is net growing –rather than eroding –at a rate of 6.7% per annum, which is 2.7% points faster than the usual SaaS bench mark.

Co-Founder and Co-CEO Steve Flavell [shown in photo above] says LoopUp developed its own team-based ‘Pod’ organisational structure for its new business acquisition activities. The Directors believe this Pod structure is an important driver of the Group’s growth: the Pod process and team-based incentivisation scheme form a highly scalable and repeatable template for future growth. In FY2015, a typical Pod delivered new annual recurring LoopUp Revenue growth of approximately £440,000.

Approximately 1850 customers include Alcatel-Lucent International, Cable &Wireless Communications, Travelex, Allied World, National Geographic, Planet Hollywood, Subaru, LateRooms.com, Permira and Kleinwort Benson. The Group benefits from a diverse customer base with the largest single customer representing just 3.6% of total FY2015 LoopUp revenue. The top 100 customers account for 60% of LoopUp revenue, the top 250 account for 78.5%, the top 500 account for 91%, and the top 750 account for 96%.

The Group’s customer loss rate of approximately 6% would suggest a theoretical average customer lifetime of approximately 16 years.

LoopUp infrastructure

During the first six months of 2016, the Group has signed up over 200 new customers. This number includes two major account wins—which, based on historic usage profiles, have the potential to become the Group’s largest customers.

The Directors believe the Group’s established revenue base in the United States, (now 45% of LoopUp revenue), is important foundation as for future growth as this geographic market accounts for over 59% of global demand. LoopUp is primarily sold on a pay-as-you-go basis, while monthly subscription licences are also offered.

The Group delivers its SaaS solution from four data centres in London, Chicago, Hong Kong and Sydney, and holds three patents for technology elements within the product which the Directors believe provide material competitive defensibility.

Founded in 2003, the Group is headquartered in Shoreditch, London and has offices in San Francisco, New York, Boston and Hong Kong. In 2015, the Group was named as one of Tech City’s ‘Future Fifty’ fastest growing and most disruptive companies throughout the UK.

The Group’s product –LoopUp –is a SaaS solution for everyday remote meetings that aims to deliver a best in-class experience for mainstream business professionals-- and for hosts, the typical LoopUp meeting involves:

  • Ability to create a meeting invite directly from Microsoft Outlook in two clicks
  • A ‘call start alert’ to their desktop and mobile/tablet devices as soon as their first invited guest joins the meeting
  • The call start alert guides them to a real-time readout of all guests on the meeting, with integration into LinkedIn profiles
  • LoopUp calls out to them on the phone of their choice, rather than requiring them to dial in with access codes
  • Ability to see who is speaking at any given moment
  • Ability to identify who has the distracting background noise and mute their line•For larger meetings, ability to put all guests on mute
  • Ability to click-to-record, on demand
  • Ability to quickly and easily share their screen with guests at any moment, during any meeting, with a single click of a button
  • Ability to allow other guests to share their screen at the host's discretion

LoopUp has won numerous awards including Frost & Sullivan’s 2015 European Conferencing Services Price/Performance Value Leadership Award.

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