Blue Prism revenues, losses to increase as it invests in growth

Back-office software developer Blue Prism reported full-year revenue ahead of expectations after strong momentum in the fourth quarter, though underlying losses were wider than hoped.

The 'robotic process automation' outfit, which offers software 'robots' designed to automate repetitive administrative task, said strong sales in the year ended 31 October meant that 1,359 deals were secured, up from 609 the prior year, as customer additions jumped from 324 to 528 and renewals increased from 21 to 108.

However, the increase in full-year EBITDA losses was due to continued investments into the AIM traded company’s growth strategy and increased sales commissions arising from the strong fourth quarter.

Cash generation for the year remained strong and net cash at 31 October is expected to have exceeded than the board's expectations.

Alastair Bathgate, chief executive of Blue Prism, said: "I am very pleased with the progress we have made in 2018 and the results we are set to deliver. It is a reassuring sign that our strategy to invest in growth during this phase of Blue Prism's evolution is the right one, in order to create long term value for our shareholders."

A statement from Blue Prism said the board expects the new financial year’s revenues to be "comfortably ahead" of expectations, while continued investment in growth is predicted to cause even greater earnings losses for 2019.

Blue Prism’s shares were down 1.26% at 1,609.43p at 0843 GMT.