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  WALLIX company press release from 26/07/2018

  26/07/2018 - 19:10

FURTHER SUSTAINED GROWTH IN FIRST HALF 2018 AND LAUNCH OF THE NEW STRATEGIC PLAN


  • CONSOLIDATED REVENUE UP 24%
  • 96 NEW CUSTOMERS ADDED (+55%)
  • 64% INTERNATIONAL GROWTH RATE
  • MARKED SUCCESS OF THE CAPITAL INCREASE AIMED AT FINANCING THE AMBITION 2021 PLAN


WALLIX GROUP (ALLIX: FR0010131409 - Euronext Growth), a software company providing cybersecurity solutions and the European specialist in privileged account governance, is announcing its H1 2018 revenue.

Audited data, €000 H1 2017 H1 2018 Change
Consolidated revenue 4,380 5,425 +24%

Jean-Noël de Galzain, Chairman of the WALLIX GROUP Management Board, made the following comments:  We have successfully maintained a strong rate of growth and pursued our commercial expansion right in the middle of the GDPR revolution. In addition to the increase in revenue, we are very satisfied with the new customers gained, including a significant proportion of key accounts with high international sales potential.

Although the new regulatory challenges that all companies operating in Europe are now facing mean that the short-term priority focus is on organizational and legal aspects, they mark the beginning of a tremendous era of growth for Cybersecurity, so as to enable companies to manage the significant increase in IT risks in a digital world.

Accordingly, we are now absolutely convinced that PAM (Privileged Access Management) will be one of the major challenges of Cybersecurity, and that WALLIX has all of the advantages required to become a European leader in that field.”


BUOYANT BUSINESS VOLUMES IN STRATEGIC SECTORS

The customer portfolio was significantly enhanced during the first half, with no fewer than 96 new accounts opened, including 6 contracts with a per-unit value of over €100,000 compared with 62 during the same period in 2017 (7 contracts with a per-unit value of over €100,000, including 1 contract with a value of over €1 million with a French OVI).

Companies operating in regulated sectors (healthcare, industry, finance and telco/Cloud) accounted for 58% of the new customers in H1 2018, compared to 18% for sensitive sectors (administration and public services, defense, and energy). This commercial expansion is expected to support our growth over the coming years.

WALLIX has enhanced its organizational structure, in order to support this ramp-up in sales. The average total headcount has increased from 66 employees in H1 2017 to 79 in H1 2018, specifically including the addition of new talent since the beginning of the year to Sales (11 people in Europe) and to the Corporate Functions (including a Director of Strategy and a Director of Human Resources).


GROWTH DRIVEN BY MAINTENANCE AND THE INTERNATIONAL BUSINESS

In €000 H1 2017 H1 2018 Change
Software 4,141 5,262 +27%
Licenses 2,741 3,105 +13%
Maintenance 1,401 2,158 +54%
Managed services 239 163 -32%

WALLIX recorded turnover of €5.4 million in H1 2018, an increase of 24% compared to H1 2017. This strong performance was driven by Maintenance sales (+54%) which were buoyed by the ongoing expansion of the installed base, which offers a strong recurring revenue stream.

The License sales business (up 13% to €3.1 million) experienced a mixed performance, including:

  • a sharp increase in the number of projects on major contracts with Key Accounts in France, one of the strictest markets in terms of regulations, although the timeframes for taking decisions and the large-scale roll-out were longer;
  • increasing International commercial success, including in the DACH Region[1], which the WALLIX Group has made one of its priorities as part of its new strategic plan.

Accordingly, the Group recorded a 64% increase in its international revenue, and therefore generated 33% of its first-half revenue outside France compared to 25% in H1 2017.

Managed Services, the historical business in which the Group is limiting its investments, generated revenue of €0.2 million over the first half, and still has commercial potential.


CASH OF ALMOST €40 MILLION AT THE END OF JUNE 2018

Thanks to the net amount raised at the time of the capital increase carried out in May 2018, i.e. €34.1 million, the Group reported a cash position of €39.7 million at June 30, 2018, compared to €7.0 million at December 31, 2017.

This sound financial position enables the Group to embark on its new development cycle as part of the Ambition 2021 strategic plan with peace of mind.


LAUNCH OF THE AMBITION 2021 PLAN

This new plan aims to change WALLIX's status from that of a European expert on the Privileged Access Management (PAM) market to that of a world-scale software editor of Cybersecurity solutions which helps companies and organizations to protect their strategic assets in a digital world.

In that context, WALLIX launched DataPeps®, on March 23 this year, an end-to-end encryption platform that enables data exchanges to be secured. This is the Group's first venture into the segment of Cloud Based Security Services distributed in SaaS (Software as a Service) mode, which has a very high potential. WALLIX has partnered up with Bertin IT in order to design CryptoCrossinG®, a highly secure email gateway intended for the exchange of sensitive data resulting from the alliance between DataPeps® and CrossinG®, the new-generation trusted gateway designed by Bertin IT. This new DataPeps® offering, and those to come as a result of the ongoing collaborative programs on encryption (FENTEC[2] and ANBLIC[3]), will act as drivers for the ramp-up of WALLIX GROUP's commercial activities in the emerging market of cybersecurity solutions in the cloud.

The Group is also confirming its goal of playing a driving role on the cyber security market, in an environment that is booming, and where digital change is occurring rapidly. Accordingly, by setting up a Strategy Division at the beginning of the year, WALLIX Group has set itself new goals in terms of developing strategic alliances and reviewing external growth opportunities, so as to acquire new technology blocks and/or drive its international roll-out.

WALLIX GROUP therefore intends to position itself as a standard-setting business partner for companies as part of their digital transition, and to enable organizations operating in Europe to comply with the NIS Directive, which has been in effect since May 9 this year, as well as with the GDPR, which entered into force on 2018, May 25.



Next publication: 2018 first-half results on October 18, 2018


ABOUT WALLIX

A software company providing cyber security solutions, WALLIX Group is a European specialist in privileged account
governance.
In response to recent regulatory change (NIS/GDPR in Europe and OVIs in France) and the cyber security threats affecting all companies today, Bastion helps users protect their critical IT assets: data, servers, terminals and connected objects. It is the first market solution to have been awarded first-level security certification (CSPN) by France's National Cybersecurity Agency (ANSSI) and thus meet all of the criteria for regulatory compliance
WALLIX accompanies more than 570 companies and organizations on a day-to-day basis, securing the access to more than 200,000 hardware and software resources. Its solutions are marketed through a network of more than 130 resellers and trained and accredited integrators. Listed on Euronext under the code ALLIX, WALLIX Group is a leader on the PAM market with a strong presence throughout Europe and EMEA. Alain Afflelou, Dassault Aviation, Gulf Air, Maroc Telecom, McDonald's, Michelin, and PSA Peugeot-Citroën trust WALLIX to secure their information systems.
WALLIX Bastion was a winner at the 2016 Computing Security Awards and has been rated Best Buy by SC Magazine, as well as being named among the PAM leaders in the Product and Innovation categories of the KuppingerCole 2017 Leadership Compass report. The company is a member of Bpifrance Excellence, a champion of the Pôle Systematic Paris Region cluster and a founding member of the Hexatrust grouping of cyber security companies. In 2017, WALLIX Group was included in Forbes France's Futur40 ranking of fastest-growing listed companies.
For more information, visit the WALLIX website at: www.wallix.com
 
 

 

 
ACTUS finance & communication
Natacha Morandi - Investor Relations
Tel: 01 53 67 36 94 / wallix@actus.fr
 
ACTUS finance & communication
Nicolas Bouchez - Financial Press Relations
Tel: 01 53 67 36 74 / wallix@actus.fr

[1] German-speaking countries (Germany, Austria, and the German-speaking region of Switzerland)

[2] The FENTEC project aims to develop functional encryption, which enables encrypted data to be processed by obtaining a partial view of the unencrypted message. The project has been selected as part of Horizon 2020, the European Union's program for financing research and innovation over the period between 2014 and 2020.

[3] The aim of ANBLIC is to prove the effectiveness of blind processing, which consists in encrypting data in such a way that it is possible to perform searches on it and use it for statistical and analysis purposes without unencrypting it, within the next three years.