Pelatro PLC (LON:PTRO) has said it is “confident of delivering a performance in line with expectations for 2020” after the customer engagement software specialist reported an increase in its revenue visibility for the year.
In a trading update to be delivered at the company’s AGM on Wednesday, the company said its activities had been “minimally impacted” by the coronavirus pandemic and that demand for its solutions had “not flagged.
As a result, Pelatro said its revenue visibility for 2020 had increased to US$5mln with annual recurring revenue (ARR) rising to US$4.7mln.
The company said it intends to increase its investment in sales and marketing across both existing emerging markets (Asia Pacific, Africa and Latin America) and new geographies (Europe, Middle East and Central Asia) with a focus on winning new managed services contracts.
Pelatro said it is aiming to increase its current ARR to “low double digits in the next two to three years”, to more than cover its operational cash cost base.
“We remain optimistic about the prospects for the telecommunications industry. At the same time, Pelatro is increasingly cash generative, with clearer visibility on future income streams and our new product modules provide a strong foundation for our continued growth”, the company said in the AGM statement.
“Given the increase in revenue visibility we are confident of delivering a performance in line with expectations for 2020”, it added.