Robot Automation Specialist Blue Prism (PRSM) has surged as stocks performed violently annually, leading up to the Covid-19 challenges.
The company said annual reservations between £180 million and £122 million were new businesses. It said the company contributed to its expected revenue growth rate of around 40% year-on-year.
Blue Prism added that its cloud service currently consists of 17% of its business and expects the division to record 147% growth on full year bookings. The company said it was encouraging its clients to expand its digital workforce in 2020, and it looks at a strong pipeline that gives it confidence in its long-term growth potential, along with positive momentum.
Over the entire year, the company added 490 new customers, increasing its user base by almost a quarter. Similarly, more than a third of the previous year added additional licenses to the digital workforce in 2020.
The company ended saying it expects EBITDA losses to be better than consensus estimates, but its annual recurring revenues are around £154 million.
Speaking about the company’s performance, Blue Prism CEO Jason Kingdom said:
“I am very pleased with the resilience and strength our business has shown throughout the extraordinary events of 2020. In the second half, we saw strong revenue retention, especially with the acceleration of new businesses signed by Blue Prism Cloud. I am also very pleased with the level of innovation from the company. There is a step change in product releases and strengthening.”
“(…) We will leave the fiscal year in a strong pipeline, underpinning the belief that intelligent automation is key to driving recovery among businesses of all sizes.”
“(…) We continue to make progress towards cash damage in 2021 and continue to reaffirm our commitment to this.”
Following the update, Blue Prism sharing has increased by around 10% to 1,762p. This price is at the highest level since lockdown began, with analysts’ target price of 1,237.50pa.
Analysts currently have a consensus-holding attitude towards equities, but the MarketBeat community gives it a 52.69% “outperform” rating.
