Blue Prism shares soar

Software provider looks set for further growth after strong sales growth

                                

Blue Prism, the software provider which specialises in Robotic Process Automation (RPA), saw its share price surge by 30 per cent on Thursday November 21, after announcing rapid sales growth.

The British firm’s share price has continued to rise on November 22, standing at 1,203.00 pence by mid-afternoon trading, a gain of 3.53 per cent.

The AIM-listed company described a “significant acceleration in sales” in the second half of this year, driven by increased deal sizes and record upselling. With a revenue outlook for 2019 of about £98m ($126m, €114m), the company added that it enters 2020 with a record order book.

As of November 1, Blue Prism had 1,677 customers, a 69 per cent increase from the previous year. The company emphasised that this widening of its customer base not only brings in immediate revenue but also lays the groundwork for extensive upselling in the future.

Executive chairman Jason Kingdon said: “We have continued to expand our enterprise customer footprint and our track record of upselling into these customers is enviable, with increases in both the volume and sizes of these upsells in the second half of the year.”

He added: “The momentum we have seen this year begins to reflect the investments we made across 2018 and investments we have made in this financial year will now begin to impact 2020 and beyond.”

With artificial intelligence and machine learning growing as an industry and as an idea in the public consciousness one could think that Blue Prism will surely go nowhere but up. However, as a relatively new industry the adoption of RPA software has come in fits and starts. Indeed Blue Prism’s share price is down 30 per cent on its April 52-week high of 2,030.00 pence.

Kingdon seems to recognise this but maintained that as the rate of adoption increases, the growth company’s share price will be less volatile. He observed: “RPA is fast emerging as a significant software category, customers are beginning to materially scale their deployments and Blue Prism is increasingly recognised as the product that can deliver this scale.”

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