Corero Network Regulatory News (CNS)

26 July 2022

Corero Network Security plc

("Corero" or the "Company")

Trading Update

Record H1 Performance. Strong levels of ARR underpins future growth

Corero Network Security plc (AIM: CNS), a leading provider of real-time, high-performance, automatic Distributed Denial of Service ("DDoS") cyber defense solutions, is pleased to provide the following trading update for the six months ended 30 June 20221.

Order intake, which reflects revenues recognised over the lifetime of each of the contracts, remained strong across H1 2022, up 22% to c.$10.9 million (H1 2021: $8.9 million).

Revenue for H1 2022 increased c.6% to c.$8.8 million (H1 2021: $8.3 million) with EBITDA2 in H1 2022 expected to be c.$0.9 million (H1 2021: $0.1 million), with successful development in the execution of management's go-to-market strategy.

Annualised Recurring Revenue3 ("ARR"), a key performance metric for the Group, increased c.21% in H1 2022 to c.$13.6 million (H1 2021: $11.2 million), driven by growth in DDoS Protection-as-a-Service ("DDPaaS") and software subscription orders.

The Company's net cash at 30 June 2022 was $5.8 million (H1 2021: $5.1 million; FY 2021: $8.4 million) and gross cash of $7.5 million (H1 2021: $8.8 million; FY 2021: $11.2 million), whilst borrowings were further reduced to $1.7 million (H1 2021: $3.7 million; FY 2021: $2.8 million). 

Corero added 21 new customers in H1 2022 (H1 2021: 20 customers), of which, eight were originated through the Company's longstanding Juniper Networks partnership (H1 2021: eight customers). To date, Corero has deployed its unique solutions in 50 countries across six continents and continues to invest in sales and marketing activities to further expand is global customer reach.

The Company expects to issue its unaudited interim results for the six months ended 30 June 2022 in mid-September 2022.

Lionel Chmilewsky, CEO of Corero, said:

"We are delighted to report another strong six months of further operational momentum and strategic growth for Corero. With both ARR and bookings growth maintaining their positive trajectory across the first half of the year, it further underpins our focus on new business.

The investment we are making to further support our Sales and Marketing and Product Development functions has allowed us to gain further coverage and traction across the dynamic DDoS defense market. I firmly believe these new initiatives will continue to reinforce our customer relationships and further enhance our business pipeline for further growth in 2022 and beyond."

1 All numbers for the six months ended 30 June 2022 disclosed within this announcement are unaudited.

2 EBITDA is defined as earnings before interest, interest, tax, depreciation, and amortisation.

3 ARR is defined as the normalised annualised recurring revenues and includes recurring revenues from contract values of annual support, software subscription and from DDoS Protection-as-a-Service ("DDPaaS") contracts.

Enquiries:

The information contained within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310, prior to release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Corero Network Security

Corero Network Security plc is a global leader in real-time, high-performance, automatic DDoS cyber defense solutions. Both Service and Hosting providers, alongside digital enterprises across the globe rely on Corero's award winning cybersecurity technology to eliminate the threat of Distributed Denial of Service (DDoS) to their digital environment through automatic attack detection and mitigation, coupled with network visibility, analytics and reporting. Corero's industry leading SmartWall and SecureWatch technology provides scalable protection capabilities against external DDoS attackers and internal DDoS botnets in the most complex edge and subscriber environments, while enabling a more cost-effective economic model than previously available. Corero's key operational centers located in Marlborough, Massachusetts, USA and Edinburgh, UK, with the Company's headquarters in Amersham, UK. The Company is listed on the London Stock Exchange's AIM market under the ticker CNS. For more information, visit www.corero.com