Strong FY growth at Netcall as Cloud strategy delivers

Strong FY25 results trading update out this morning from intelligent automation and customer engagement software provider, Netcall underscores the effectiveness of its cloud-first transformation strategy, with the company delivering impressive 23% revenue growth to £48.0m while maintaining healthy profitability. The standout performance comes from cloud operations, where Annual Contract Value (ACV) surged 52% to £33.9m, now representing 80% of total ACV, a clear indication of successful positioning in the high-growth SaaS segment.

The 26% organic cloud growth validates management's investment thesis around AI-enhanced automation capabilities. Strategic acquisitions of Govtech and Parble have expanded its addressable market and created meaningful cross-sell opportunities, though the £12.5m acquisition spend naturally impacted cash reserves.

Netcall demonstrates the hallmarks of a well-run digital transformation play accelerating recurring revenue growth, expanding market reach through targeted M&A, and strong cash generation supporting future growth initiatives. The public sector momentum is also noteworthy given this segment's traditionally longer sales cycles but higher contract values. TechSectorViews subscribers can read more on our take on Netcall in our recently published AI impact: front office operations report.

Looking forward, with 80% recurring revenue visibility and a debt-free balance sheet, Netcall appears well-positioned to capitalise on continued enterprise digitalisation trends. The key metric to monitor I believe will be whether the company can sustain 50%+ cloud growth rates as it scales.

Posted by: Marc Hardwick at 08:34

Tags: trading update