Cybersecurity company Nixu announced earlier today changes to its financial guidance with a stock exchange release. The company’s growth strategy is at a stage where the company sees it reasonable to seek strong growth from the fast developing cybersecurity market at the expense of profitability. Nixu’s medium-term goal is to achieve an annual revenue growth rate of above 15% and an EBITDA margin of above 10%. At the moment, the company invests significantly in several different development, sales and internationalization projects to implement its growth strategy.
Financial year 2018: Revenue grew as predicted, EBITDA forecast slightly decreases
Nixu’s EBITDA was earlier expected to be low but slightly positive in 2018. Based on preliminary unaudited information, EBITDA is now expected to be slightly negative. This is caused by numerous unrelated factors. The most significant change compared to the previous was the costs of a service development project (circa EUR 100 thousand) that was implemented during H1 2018 and written down at the end of 2018. In addition, Nixu result will be impacted by a goodwill impairment (EUR 372 thousand) related to client value of the acquired ESSC BV. One large but non-strategic client terminated their contract at the end of 2018.
New guidance for 2018: Supported by strong organic growth and acquisitions, Nixu’s revenue will be circa MEUR 40 growing over 24% in financial year 2018. Due to the strong growth investments and non-recurring costs related to the preparations of Stock Exchange list transfer in particular in the first half, full-year EBITDA will be slightly negative.
Previous guidance for 2018: Supported by strong organic growth and acquisitions, Nixu estimates its revenue to grow circa 25% in financial year 2018. Due to the strong growth investments and non-recurring costs related to the preparations of Stock Exchange list transfer in particular in the first half, EBITDA is expected to remain low but slightly positive.
Financial year 2019: Over 20% growth and improved profitability
The company still sees reasonable to deviate from the medium-term goal by seeking strong growth from the fast developing cybersecurity market, partly at the expense of profitability.
Guidance for 2019: Nixu continues to emphasize the importance of growth and continues to invest in growth projects. Supported by strong organic growth, Nixu estimates its revenue to grow over 20% from the previous financial year. The full year EBITDA is estimated to improve significantly from the previous financial year.
The shift towards long-term and holistic cybersecurity partnership-based deliveries and the strong growth of technology-based managed security services, like Nixu Cyber Defense Center, have a key role in Nixu’s strategy. In 2018, Nixu signed several large agreements that provide a strong foundation for rapid organic growth.
Nixu Corporation releases its financial statements release for 2018 on February 28, 2019 at 8.30 AM EET. Until then, the company observes a silent period and will not comment on the financial guidance any further.
Chief Executive Officer Petri Kairinen, Nixu Corporation
telephone +358 40 832 1832, email: firstname.lastname@example.org
Nixu in brief:
Nixu is a cybersecurity services company on a mission to keep the digital society running. Our passion is to help organizations embrace digitalization securely. Partnering with our clients we provide practical solutions for ensuring business continuity, an easy access to digital services and data protection. We aim to provide the best workplace to our team of over 300 cybersecurity professionals with a hands-on attitude. With Nordic roots, but based in four continents, we serve enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki stock exchange.