WANdisco Plc – Preliminary results
WANdisco (LSE: WAND), the LiveData company announces results for the year ended 31 December 2018.
Financial highlights
- Revenue for the year of $17.0 million (2017: $19.6 million) with H2 revenue increasing 13% to $11.3m
- Cash overheads3 of $29.8 million (2017: $24.5 million)
- Adjusted EBITDA4 loss of $9.4 million (2017: $0.6 million)
- Operating loss for the year $22.1 million (2017: $9.7 million)
- Cash at 31 December 2018 of $10.8 million (2017: $27.4 million)
- Debt of $3.9 million (2017: $4.0 million)
Post period-end performance
- Strong Q1 2019 progress with revenue of $4.0 million, up 38% year-on-year
- Successfully closed a fundraise raising gross proceeds of $17.5 million on 14 February 2019
- Cash balance on 12 April 2019 of $24.4 million
- Strong pipeline underpins the Boards confidence in the outlook for the full year
Operational and strategic highlights
- Shift towards recurring revenue model based on annual recurring revenue from cloud contracts
– $3 million US health insurance subscription contract through Microsoft co-sell status
– $1 million partially recurring Source Code Management contract with ICT provider in China
– $200k recurring automotive contract expected to expand substantially - Deepening our key strategic partnerships
– Microsoft Azure co-sell status delivering strategic deals with high profile customers through the world’s second largest cloud
New customers include a major bank, semiconductor company and major retailer
– IBM OEM royalty percentage increased to 50% with guaranteed annual minimum royalty commitment and joint SQL product launch
New customers in insurance, banking, telecommunications and US Government
– Gained Advanced Technology Partner status with Amazon Web Services (“AWS”) and collaborated with AWS to win first multi-cloud contract
– OEM sales partnership with Alibaba Cloud, first product now integrated with its Cloud Solution - Growing product expands addressable market
– Launched LiveData product for Multicloud and won first contract with a global network operator
– IBM BigSQL co-engineered product launched expanding addressable LiveData market
– Filed blockchain patent to potentially open significant new market for WANdisco’s core technology - Appointment of Silicon Valley expert Bob Corey as Senior Non‐executive Director and Vice Chairman to the Board and Joel Horowitz as SVP of Marketing
David Richards, Chief Executive Officer and Chairman of WANdisco, commented:
“This has been an important year for WANdisco, with substantial progress in both partnerships and product to unlock the significant potential in cloud computing. We have significantly extended our relationship with Microsoft, gaining co-sell status that allows our WANdisco Fusion platform to be sold as a standard offering with Microsoft’s Cloud Solution, Azure. Throughout the year we have continued to build on this foundation and have closed a number of strategic deals with high profile Microsoft customers.
Cloud has firmly overtaken on-premises, and as businesses continue that transition they are using a variety of cloud vendors. LiveData for Multicloud plays a critical role in that environment, enabling businesses to replicate their data assets, seamlessly between cloud regions, or different cloud vendors.
We also have begun to see a significant structural shift in the composition of our revenue base, from large, difficult-to-forecast on-premises transactions toward more predictable, annual recurring cloud revenues. We see significant opportunities to expand our addressable market in cloud and as annual recurring revenues increase over time, develop a smoother, increasing revenue profile for our firm.“
A webcast of WANdisco’s results presentation will be available on the Company’s website later this morning: https://www.wandisco.com/investors