Cloopen Group Holding Ltd. (NYSE: RAAS) announced mixed results for the fourth quarter, sending its shares down 22% to $11.32 intraday Friday.
The provider of cloud-based communications solutions reported an increase of 15.5% in revenue to $39.6 million. Cloopen said revenues from cloud-based contact center solutions increased by 74% year-over-year.
However, net loss for the fourth quarter reached $46.8 million, representing a 500% increase from the same period of last year.
Changxun Sun, the chief executive officer of Cloopen, stated, "Despite the unprecedented challenges presented by the Covid-19 pandemic, we are delighted to see the outstanding value proposition that our products and services deliver resonating with more and more enterprises in the marketplace."
The company recently reported it signed a deal to acquire EliteCRM, a customer relationship management software provider.
The Beijing-based provider of cloud-based communication services to enterprises claims to be the largest company of its kind in China in terms of revenues in 2019. According to China Insights Consultancy (CIC) data, it was the only provider in China offering a full suite of cloud-based communication services. The company reported its active customers were 13,039, representing a 13% increase year-over-year.
Cloopen debuted in public trading in February and said it will use the IPO capital to upgrade its solutions and invest in video and AI technology. It also expects to use a portion of the proceeds for strategic investments and for working capital.
For the first quarter of 2021, Cloopen expects to generate revenues of $29.4 million and $30.2 million, representing an increase of between 45% and 48.8% year-over-year.
“Looking at 2021, we are well positioned to take advantage of pent-up demand from enterprise activities delayed in 2020 and capture expanding cloud communications service deployment opportunities, the positive impacts of which we've already begun to witness in the first quarter of 2021," said Steven Yipeng Li, the chief financial officer of Cloopen.