WANdisco H1 2022 Trading Update

RNS Number : 9161R

WANdisco Plc

11 July 2022

 

11 July 2022

WANdisco plc

("WANdisco" or the "Company")

H1 2022 Trading Update

· Record bookings of $27.3m

· Accelerating commercial momentum with multiple multi-million dollar contract wins

· Strong Balance Sheet with $32.5m in net cash

· Robust pipeline underpins confidence in a strong 2022

WANdisco (WAND.L), the data activation platform, announces a trading update for the six months ended 30 June 2022.

Trading Update

Bookings in H1 2022 grew 1,200% to US$27.3m (H1 2021: US$2.1m). This record level was driven by significant contract wins for WANdisco's LiveData Migrator ('LDM') and LiveData Migrator for Azure ('LDMA') solutions. These wins were secured both directly and via key cloud channel partners, including IBM, Azure and AWS, as well as via principal analytics partners Databricks and Snowflake.

Ending RPO¹ (Remaining Performance Obligations) is expected to be approximately $31m as at 30 June 2022; up significantly from the $3.5m registered in the same period last year.

The Company ended the Period with a strong balance sheet, with cash of approximately $32.5m and $13.1m in trade receivables as at 30 June 2022.  

Commercial Momentum

The General Availability of LDM² and LDMA³ has been essential in the acceleration of WANdisco's commercial momentum in H1 2022. Whilst the Group has seen the adoption of the product in several verticals, commercial momentum with the Internet of Things ("IoT") service providers has been particularly encouraging. The Group has secured significant new and expansion contracts to migrate data from on-premise edge platforms to the cloud. The Company believes the market opportunity created by IoT deployments will be a significant commercial driver moving forward.

A key customer selling point is LDM's ability to provide the customer with the ability to move data to any cloud provider enabling ultimate ownership of data. This factor, along with the Company's ability to migrate data at scale without requiring any system downtime and its capacity to automatically migrate data changes as they occur - ensuring data consistency - were key factors in securing these IoT contracts.

Importantly, several IoT deals secured during H1 2022 have the potential for expanded use cases and additional Commit-to-Consume revenues for WANdisco. This has been illustrated during H1 2022; having signed two contracts previously totalling US$2.5m in March 2022 with a top ten global telco, the Company announced a record follow-on deal with that same customer worth US$11.6m in June 2022. This follow-on deal was driven by an increase in data throughput and geographic expansion for one of the customer's underlying smart meter operators.

Outlook

Looking ahead, the high visibility and robustness of WANdisco's near term business pipeline underpins our confidence to continue our strong trading throughout the remainder of 2022. The Company is well placed to capture significant market opportunities in IoT-driven deals and as well as drive expansion into new verticals in the coming year.

David Richards, CEO and Chairman of WANdisco, commented :

"Following the general availability of our LDM and LDMA products, the first half of this year has been a transformational period. The enhanced trust and comfort potential customers now feel they can have in our capabilities has unlocked all manner of use case experimentations and - as our financial metrics show - meaningful commercial commitments. Our commit-to-consume revenue model, introduced twelve months ago, is also playing a key role in bringing new customers on board as well as making it easy for existing customers to plug in new opportunities to harness our technology inside their businesses. 

Looking ahead, the key task for us is to remain focused on converting our robust pipeline of opportunities. Many of these opportunities are being driven by the explosion in IoT use cases, and we remain confident in our ability to deliver continued strong trading through 2022 and beyond."

Footnotes

1)  Ending RPO is defined as Beginning RPO plus Bookings minus Recognised Revenue.

2)  LDM, the Company's cloud agnostic solution for moving large amounts of data at scale, is rapidly becoming a standard part of IoT infrastructure. The Company believes the market opportunity created by IoT deployments will be a significant commercial driver moving forward.

3)  LDMA, is WANdisco's native Azure service that enables users to migrate petabyte-scale Hadoop data and Hive metadata to the Azure cloud with zero application downtime and zero risk of data loss even while the source data is under active change.

ENDS

For further information, please contact:

WANdisco plc	via FTI Consulting
David Richards, Chief Executive Officer and Chairman
Erik Miller, Chief Financial Officer Kam Bansil, Investor Relations	[phone]
FTI Consulting	[phone]
Matt Dixon / Kwaku Aning / Tom Blundell
Stifel  (Nomad and Joint Broker)	[phone]
Fred Walsh / Richard Short
Panmure Gordon  (Joint Broker) Erik Anderson / Alina Vaskina / Dougie McLeod	[phone]

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (No 596/2014).  The person responsible for this announcement is Erik Miller, CFO.

About WANdisco

WANdisco is the first and only data activation platform for accelerating digital transformation at scale. WANdisco makes infinite data actionable across clouds and enterprises in real time. WANdisco customers unleash the business value of the cloud with zero downtime, data loss, or disruption to fuel AI and machine learning, create new services, and transform businesses. For more information about WANdisco, visit www.wandisco.com.

 

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