Record half year performance for bookings and revenue
Osirium Technologies plc(AIM: OSI), a leading vendor of cloud-based cybersecurity and IT automation software, announces an update on trading for the six months ended 30 June 2022.
The positive trading momentum reported in the Company’s Q12022 trading update has continued through Q2, and the Board expects to report the Group’s best six-month figures for bookings and revenue:
Bookings increase of 30% to not less than £1.18 million (1H 2021: £0.91 million), with more than 50% of the value coming from new customer wins
Revenue of £0.91 million (1H 2021: £0.74 million)
Deferred revenue increased 14% to £1.91 million (1H 2021: £1.68 million), providing enhanced visibility
Debtors and cash balances as at 30 June 2022 were £0.61 million
The Board recognises that annualised recurring revenue (“ARR”) is a key industry measurement of the size of a SaaS Company’s subscription revenues and has decided to adopt this as a key performance indicator going forward. For June 2022, the Group’s ARR* was £1.61 million, an increase of 11% since the start of the year (December 2021: £1.45 million) and 29% over the past 12months (June 2021: £1.25 million).
The Group is pleased to report a continuing increase in average contract size amongst its new customer acquisitions. New contracts have been signed across a range of sectors during the period, including notable wins in healthcare, higher education and financial services. The Group expects these markets to continue to be key growth drivers in H2 and beyond.
In line with its land-and-expand strategy, Osirium has also expanded licenses with existing customers, including with a number of the Group’s NHS customers signed in 2021.
Aided by its international channel partner network of resellers and distributors, the Group has signed deals in two new geographies, the USA and Finland, during H1.
The Group has seen the continued strong growth of its newer products. Increasing numbers of PAM customers are adding PPA and PEM to their environments and the Group also announced its first deals where these products were the main component duringH1. The growth in demand for these products provides the important opportunity for cross-selling and up-selling.
Reflecting this cross-selling opportunity, Osirium is pleased to announce it has signed a contract expansion with an existing customer, a major UK provider of telephony and broadband services. Initially signed as a 36-month PAM deal in December 2020, this customer has now expanded its scope to include Osirium’s PPA and PEM solutions. This sale, won in conjunction with Osirium’s channel partner Nomios, is the first where all three Osirium privileged security products will be utilised.
With a good pipeline of opportunity ahead, an enhanced base of deferred revenue and an ongoing trend towards privileged security procurement, the Board remains confident of meeting revenue and bookings guidance for the full year. The Board maintains a focus on balancing investment alongside managing costs and will continue to ensure the appropriate structures are in place to support the growth strategy. As announced at the time of the Group’s fundraising in February 2022, the Group will be required to raise additional capital in the second half of 2022 and the Board continues to assess all available options in this regard.
The Group expects to report its interim results for the period in September 2022.
* ARR is calculated by annualising revenue recognised in a given month from all clients on deployed subscription contracts
David Guyatt, Chief Executive Officer of Osirium said:
“Our record half for booking sand revenue shows the continued drive in the business as we increase our customer base as well as average total contract values. This is facilitated through the expansion of our products and additional licenses and our well-established channel partner network which extends into new territories underserved by our competitors.
“There remains an opportunity to scale the business significantly and I am pleased with the progress made in the first half of the year.”
Osirium Technologies plc
Tel: +44 (0)1183 242 444
David Guyatt, CEO
Rupert Hutton, CFO
Allenby Capital Limited (Nominated adviser and broker)
Osirium Technologies plc (AIM: OSI) is a leading UK-based cybersecurity software vendor delivering Privileged Access Management (PAM), Privileged Endpoint Management (PEM) and Osirium Automation solutions that are uniquely simple to deploy and maintain.
With privileged credentials involved in over 80% of security breaches, customers rely on Osirium PAM’s innovative technology to secure their critical infrastructure by controlling 3rd party access, protecting against insider threats, and demonstrating rigorous compliance. Osirium Automation delivers time and cost savings by automating complex, multi-system processes securely, allowing them to be delegated to Help Desk engineers or end-users and to free up specialist IT resources. The Osirium PEM solution balances security and productivity by removing risky local administrator rights from users, while at the same time allowing escalated privileges for specific applications.
Founded in 2008 and with its headquarters in Reading, UK, the Group was admitted to trading on AIM in April 2016. For further information please visit www.osirium.com.