CEO's review

Valtteri Peltomäki

Valtteri Peltomäki, Interim CEO, Nixu Corporation
Espoo, April 14, 2022

"In the first quarter of 2022, Nixu returned to a growth path after a difficult period during the Covid-19 pandemic. The changes carried out in our business in 2021 are starting to bear fruit: the positive sales development continued, and our revenue increased in the first quarter of 2022. Once again, the client orders we received saw double digit growth from the comparison period.

Our clients are ready to invest in cybersecurity development projects after the quieter phase during the Covid-19 pandemic. Our current, cross-border operating model enables growth in all our operating countries. As a result, we have, among other things, won a digital identity agreement and an important detection and response agreement in Denmark. In Finland, we signed an agreement on the level of a few million euros on the technical development and maintenance of the national authentication service.

As previously announced, loss-making Managed Services will burden our profitability in the first half of 2022. Good sales development in the first quarter and significant deals in Finland and Denmark, for example, strengthen our confidence in the improved profitability of Managed Services towards the end of the year.

Our overall profitability in the first quarter was also affected by recruitment-related costs and employee turnover, which remains higher than we would like. However, we are able to attract new talent and our current headcount enables continued growth also in the future. The absences still caused by the coronavirus pandemic at Nixu and our clients have an impact on the progress of assignments. However, we expect this to decrease in the near future.

The long-term demand trend remains strong. The digitalization of society has been going on for a long time, and the recent war situation and the increase in cyber threats will also maintain the need for cybersecurity for a long time to come.

We condemn Russia's aggression against Ukraine and want to express our sympathy to those affected by the war. Our strategy is to focus our business on Northern Europe. Nixu has no business in Russia, Belarus or Ukraine.

The geopolitical situation caused by the war in Ukraine has made cybersecurity and cybersecurity preparedness a topic of discussion everywhere. Cyber threats have increased in all our markets, and many organizations have started to develop their preparedness. At the same time, the war and the economic uncertainty it creates are slowing down some of the clients’ long-term investment decisions.

I have acted as Nixu’s CEO since March and will continue in the position until Teemu Salmi, who has been appointed as the new CEO, will assume his position by September 1, 2022 at the latest. I have worked in various positions at Nixu for 14 years, so I am familiar with Nixu employees, clients, and business. The transformation carried out last year has put us back on a growth path. I am convinced that the changes made and the further implementation of our new operating model will ensure that Nixu is headed towards faster growth and improved profitability."