CEO's review

Petri Kairinen

Petri Kairinen, CEO, Nixu Corporation
Espoo, February 13, 2020

The challenging end of the year will not change our growth ambition

”Nixu again saw rapid growth in 2019, almost 30% annually, with revenue exceeding EUR 50 million. After completing the acquisition of Ezenta A/S in Denmark, Nixu is now a substantial player in terms of size in Northern Europe and especially the Nordic region. December was the first month when more than half of our revenue came from outside Finland. It is important for us to grow in size and expand to new markets, as we are building an increasing market share in the cybersecurity market, which has yet to see its strongest growth. The need for cybersecurity services will continue to grow along with the digitalization of society. This is becoming evident now that 5G networks are becoming more prevalent and industries are beginning to adopt Internet of Things (IOT) solutions. Our mission to keep the digital society running is now highly topical.

In terms of results, the year was mixed. The highly successful first half was followed by a challenging second half, during which we were forced to lower our growth forecast twice. Our growth remained lower than originally estimated due to a number of unrelated reasons. However, we believe that our long-term competitiveness has not suffered. In a services business such as Nixu’s, lower than projected revenue is immediately reflected in profitability, as it is difficult to cut costs proportionally. In the second half, our EBITDA was extremely weak. However, we have taken a number of corrective measures, and I trust that we have a good possibility that our EBITDA will again be positive in the first half of 2020 despite the continuing investments in international growth.

In August, we published Nixu’s medium-term growth ambition. Our aspiration for growth is ambitious, but in line with our growth in the last five years. We still believe that Nixu has a realistic chance of continuing this growth. A key factor in this will be strong, profitable growth in Nixu’s foreign markets as well as the sustained strong growth of continuous managed services. Nixu is rapidly evolving from a consulting company into a more comprehensive cybersecurity partner for companies. New services are constantly being developed. A good example of this is the contract we signed at the end of 2019 for the implementation of a managed consumer digital identity service for a major enterprise customer.

In 2020, it is essential for us to 1) sharpen our sales efforts and forecasting, 2) harmonize our range of services and development focus in different market areas, and 3) ensure that Nixu continues to employ the best, most enthusiastic cybersecurity experts in the industry, who we can more consistently provide with meaningful customer projects to work on, preferably as continuous services.”