CEO's review

Teemu Salmi, CEO, Nixu Corporation
Espoo, February 9, 2023

Year 2022 was in many ways a successful one for Nixu. We returned back on track for growth and our profitability also clearly improved. Additionally, we outperformed the cybersecurity market when it comes to growth. This good financial performance was the result of the changes made in the previous year and the hard work of Nixu’s employees to achieve our common goals.

During the year 2022, we focused on growth and ensuring profitability and efficiency of our operations. After the pandemic receded from the Nordic region, the market evolved rapidly. Many organizations are now more willing to use external partners to maintain, strengthen, and develop their cybersecurity environment. This supported our own efforts and contributed to Nixu’s return to a profitable growth path.

Our revenue increased by 16% year-on-year to EUR 60 million. Similarly, our profitability strengthened, and EBITDA increased by 64% to EUR 2.4 million. Additionally, our orders received during 2022 grew by 35% to 68.4 million euros. Our book-to-bill ratio was 114% at the end of the year. The positive trend strengthened as we moved to the end of the year, which led us to raise our financial guidance in October. This all promises well for the future.

The demand for managed services was strong, and we managed to increase our client base. The revenue of Nixu’s managed services business increased by 10% compared to the previous year (revenue increased by 30% during the second half of the year), and profitability also developed positively. Growth and profitability in professional services were also strong. Managed services and professional services accounted for 21% and 74% of Nixu’s revenue respectively.

During the year, we signed a number of significant client contracts, many of them with existing clients. Our relationships with our clients are long-lasting, and we work closely together in true partnership. One proof point is that almost 90% of our clients return year-over-year with new orders. We measure our client satisfaction using the net promoter score, which shows that we are at an excellent level, ending at 57 as a result for the full year of 2022.

During the second half of 2022, we were running a strategy update project where we focused on outside-in data points, as well as our current strengths, to look at how to take Nixu to the next level. Our updated strategy is called “Next Nixu”. Our strategic ambition by 2025
is to reach revenue exceeding EUR 100 million and an adjusted EBIT of more than 10%. In addition, Nixu aims to have a more balanced geographical distribution of revenue and a higher share of recurring revenues.

I took over as CEO in August 2022, and the past few months have been very much focused on building a platform for future profitable growth. I would like to thank Valtteri Peltomäki for a smooth transition and all our employees for the warm welcome and hard work done during the year. I would like to thank all our clients for the good cooperation and the trust given to us and our shareholders and partners for supporting our journey towards “Next Nixu”.