(Alliance News) - Osirium Technologies PLC said on Monday it expects annual revenue to miss market expectations, despite seeing around a 70% increase in new customers in the second half of 2021.
The Reading-based cybersecurity company expects GBP1.5 million of anticipated bookings from existing customer renewals due in 2022 as a result of its expanded customer base and high level of customer retention.
Revenue, however, is expected to remain at a similar level to prior years, meaning it will fall slightly behind market expectations. For 2020, the company posted revenue of GBP1.4 million, up 22% from GBP1.2 million in 2019.
Customer retention rates remained high at 97%.
Osirium cites increased reach into new markets and a more general acceleration of interest in privileged security products for the reason behind its increase in new customers.
It blames ongoing caution around Covid-19 for lower initial contract values and longer decision times.
"As a reflection of the demand for our services, we have continued to see growing customer numbers as we progress through the second half, along with sustained customer retention of [greater than] 95% by value. While lower contract values have impacted our bookings and revenue, we believe our expanded market reach and penetration provides a good opportunity from which to execute our 'land-and-expand' strategy as the market continues to gain momentum and evolve. We will continue to review the group's strategy for delivering long term shareholder value," Chief Executive of Osirium, David Guyatt, commented.
Osirium shares sunk 8.5% to 16.70 each on Monday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Osirium Tech (OSI)