This release is a summary of Nixu Corporation’s January 1 – December 31, 2022 Financial Statements Release. The complete report is attached to this release as a pdf file and also available on the company website at https://www.nixu.com/investors.
A clear turnaround – many opportunities ahead
Highlights for July–December 2022
- Revenue: EUR 31,642 (25,089) thousand, change +26%.
- EBITDA: EUR 2,032 (667) thousand, share of revenue: 6% (3%).
- Adjusted EBITDA: EUR 2,128 (731) thousand, share of revenue: 7% (3%).
- EBIT: EUR 1,117 (-289) thousand, share of revenue: 4% (-1%).
- Nixu’s new CEO Teemu Salmi started in the position on August 1, 2022.
- Nixu launched a strategy update project.
- Nixu signed a significant cybersecurity framework agreement.
Highlights for January–December 2022
- Revenue: EUR 60,222 (51,809) thousand, change +16%.
- EBITDA: EUR 2,409 (1,473) thousand, share of revenue 4% (3%).
- Adjusted EBITDA: EUR 2,480 (1,929) thousand, share of revenue 4% (4%).
- EBIT: EUR 564 (-444) thousand, share of revenue 1% (-1%).
- The company extended the maturity of its financing.
Financial Guidance for 2023
Nixu estimates its revenue to be EUR 66–70 million and profitability to improve.
|EUR thousand||1 July - 31 Dec2022||1 July - 31 Dec2021||1 Jan - 31 Dec2022||1 Jan – 31 Dec2021|
|Profit/loss for the period||799||-532||42||-984|
|Earnings per share (EUR)||0.11||-0.07||0.01||-0.13|
|EBITDA, % of net sales||6.4%||2.7%||4.0%||2.8%|
|Adjusted EBITDA, % of net sales1||6.7%||2.9%||4.1%||3.7%|
|EBIT, % of net sales||3.5%||-1.2%||0.9%||-0.9%|
|Adjusted EBIT %1||3.8%||-0.9%||1.1%||-0.0%|
1 Adjustment items are exceptional and non-recurring events that are not ordinary course of business. Such exceptional items include e.g. other operating expenses related to reorganization and business combinations. January-December 2022 EBITDA included the non-recurring costs EUR 71 (456) thousand. July-December 2022 EBITDA included the non-recurring costs EUR 96 (64) thousand.
|EUR thousand||31 Dec 2022||31 Dec 2021|
|Equity ratio, %||30.6%||31.5%|
|Net interest-bearing debt||3,199||3,237|
|Net gearing, %||25.2%||25.3%|
The figures presented in the financial statements release are un-audited.
Teemu Salmi, CEO of Nixu:
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 client s return year-over-year with new orders. We measure our client satisfaction using 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 co-operation and the trust given to us and our shareholders and partners for supporting our journey towards “Next Nixu”.
Financial reporting in 2023
The planned date for the Annual General Meeting is Thursday, April 27, 2023.
Nixu will be publishing operating profit (EBIT) and adjusted operating profit (EBIT) in Q1 and Q3 reports instead of EBITDA and adjusted EBITDA. Operating result 1Q2022 was EUR -687 thousand and adjusted operating result EUR -712 thousand. Operating result 3Q2022 was EUR 642 thousand and adjusted operating result EUR 642 thousand.
Nixu will publish its half-year financial report for January–June 2023 on Thursday, August 10, 2023. In accordance with its disclosure policy, Nixu will publish revenue, EBIT and adjusted EBIT information from the first and third quarters, as well as the CEO’s overview in addition to the half-year financial report and financial statements. The Q1/2023 CEO’s overview, revenue, EBIT and adjusted EBIT information will be published on April 20, 2023, and Q3/2023 will be published on October 18, 2023.
Nixu will organize a results briefing for analysts, investors and media representatives on February 9, 2023 at 2:00 PM EET. The event will be available through a live webcast at https://nixu.videosync.fi/2022-q4-results.
Espoo, February 8, 2023
The Board of Directors
Attachment: Nixu Corporation Financial Statements Release 1.1.–31.12.2022
CEO Teemu Salmi, Nixu Corporation
Nixu in brief:
Nixu is a cybersecurity services company that has been shaping the future through cybersecurity for over three decades. We make cyberspace a secure place and help our clients ensure business resilience with peace of mind. Nixu has Nordic roots, and we employ around 400 of the best professionals in Finland, Sweden, the Netherlands, Denmark, and Romania. Our experts are safeguarding the most demanding environments of some of the largest organizations in the world across all industries. Nixu shares are listed on the Nasdaq Helsinki Stock Exchange.