CEO's review

Petri Kairinen

Petri Kairinen, CEO, Nixu Corporation
Espoo, April 15, 2021

The Covid-19 pandemic, that hit the world with full force a year ago and quickly affected the society on all levels, continued to frame the first quarter of 2021. The comparison period in 2020 was during the time of pre-pandemic with normal business environment, while Nixu was progressing fully in line with our growth strategy. Following the cost saving measures in 2020, we started the Q1 from a much more defensive position and with fewer employees. This had a large impact on our revenue even with positive sales atmosphere. On the positive side, we improved our EBITDA from the last year even while simultaneously increasing investments to growth and starting the transition to our new operating model.

Even if we start the year more slowly than last year, we are fully committed in meeting our goal of growing organically while improving our EBITDA during this year. It is clear that we are not satisfied with the level we were during the Q1. However, with the recruitments taking place and growth initiatives started, we are already showing promise and we expect the pace to increase towards summer to gain full speed during H2.

In February 2021, we utilized the perfect storm, created by the pandemic, that induced the shift to remote work, and took the crucial step in making Nixu a more unified European cybersecurity player better equipped to achieve a breakthrough in markets outside Finland. Our new, international operating model aims at increasing our client understanding, intimacy and focus, strengthen the development of expertise, and improve profitability through more efficient service staffing and delivery.

Towards the end Q1, we embarked again on our growth journey. We formed a dedicated start-up business unit to focus on the cybersecurity of IoT devices. However, even if it is not a new area to Nixu, now we are pooling our competences and international reach in one focused unit.

Additionally, the Danish cybersecurity company C-cure’s experts joined Nixu to further strengthen our presence in the fragmented Danish cybersecurity market.

The prolonged pandemic has forced the world to become digital while companies and organizations are increasingly relying on digital solutions. When looking across our industry it seems that most of this growth in digital has so far gone to companies implementing new solutions. While the solutions are increasing, so is the debt of cybersecurity spenditure, which has not kept pace with digital spenditure. We see the future as bright in terms of demand for cybersecurity services as threats keep evolving.

With the measures we have taken - cost savings implemented in 2020, our streamlined operations and new more client centric operating model - accompanied with the promising market outlook for cybersecurity services, I am confident that we are well positioned to continue serving our clients successfully across Northern Europe.