Gamma Adds Over 90K Teams and Horizon Seats

Gamma has gained 91,000 Teams and Horizon seats which contributed to a strong overall performance in the first half of the year. 

The company’s revenue grew by 8%, reaching £234.7 million, and its gross profit also increased by 8% to £120.4 million. 

Gamma is also on track to move from carbon-neutral to net zero by 2042. 

Andrew Belshaw, Interim Chief Executive Officer, said: “I am pleased to be presenting the first set of results since I took on my new role. 

“Gamma has had a strong first half. Our Direct business in the UK has returned to growth as we had indicated it would once the effects of COVID had worked through. 

“The UK Indirect business continues to be strong with good growth in the new variants of SIP which support MS Teams users. 

“Our European business has increased the number of Cloud seats by 7% despite a challenging economic environment.” 

The UCaaS provider, Gamma, has seen positive growth across its biggest products, including voice enablement of Microsoft Teams using Direct Routing. 

Cloud PBX users grew by 6% from 676,000 to 716,000 and the number of European Cloud PBX seats increased by 7% to 137,000. 

As a result of Gamma’s revenue and gross profit increasing by 8%, Adjusted EBITDA increased by 13%. 

Gross profit from European business grew by 4% with a reported increase in UCaaS users. This growth signals an opportunity to gain further business in what it sees as an “under penetrated” continent. 

Gamma says it is continuing to meet its long-term goal of creating a solution which enables flexible working for all business sizes. 

From an environmental standpoint, Gamma has made a commitment during this H1 to meet the emissions standards set by the Science-Based Target initiative (SBTi). 

Belshaw added: “We are seeing some effects of inflation in connectivity and hardware costs which we are generally able to pass on to customers. We expect this to continue to increase in the second half and into 2023. 

“We are also seeing salary inflation, which we continue to actively manage whilst focussing on retention and ensuring that we support our lower paid staff seeing unprecedented rises in the cost of living. 

“Gamma is well placed to navigate the publicised macro-economic headwinds. We are a leader in a market with long-term structural growth, have a high degree of recurring revenue and have been and will continue to be strongly cash generative. 

“We have a robust balance sheet that will allow us to continue to invest in the business as well as support organic growth with selected acquisitions.” 

Earlier in H1 2022, Gamma added XConnect’s global numbering intelligence to enhance its business messaging services. 

In last year’s H1 results, Gamma only saw a ‘minor impact’ from the pandemic.