If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksCorero Network Regulatory News (CNS)

Share Price Information for Corero Network (CNS)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 14.50
Bid: 14.00
Ask: 15.00
Change: 0.50 (3.57%)
Spread: 1.00 (7.143%)
Open: 14.00
High: 14.50
Low: 14.00
Prev. Close: 14.00
CNS Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Trading Update

17 Jan 2023 07:00

RNS Number : 9056M
Corero Network Security PLC
17 January 2023
 

17 January 2023

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. 

 

Corero Network Security plc

("Corero" or the "Company")

 

Trading Update

 

Corero Network Security plc (AIM: CNS), a leading provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) cyber defence solutions, provides the following trading update for the year ended 31 December 20221.

 

Order intake2, which reflects revenues recognised over the lifetime of each of the contracts, was $23.9 million for the year ended 31 December 2022 with growth of 13% over the prior year (2021: $21.2 million). Encouragingly, new customer order intake increased 38% over the prior year. This, coupled with a customer support contract renewal rate of 98% (2021: 96%), demonstrates the strength and quality of Corero's market-leading solutions, supported by continued investment in product development.

 

Annualised Recurring Revenues3 ("ARR") increased to $14.4 million as at 1 January 2023, an increase of 13% over the prior year (ARR at 1 January 2022: $12.8 million), driven by strong demand for Corero's subscription-based and DDoS Protection as-a-service ("DDPaaS") products, which underpins higher levels of earnings predictability for the Company going forward. The pipeline built through 2022 in combination with the increase in ARR will ensure Corero is well positioned for growth in 2023 and beyond.

 

During the final quarter of the year Corero had a number of important customer wins for its SmartWall® DDoS protection solutions including additional purchases from existing customers, a number of new customer wins and a significant multi-year support renewal for an existing customer, which will benefit revenues in 2023 and subsequent years.

 

Corero added 32 new customers in 2022 (2021: 44 new customers), with the average contract value per new customer increasing by 44% year on year. Corero continued to make progress with strategic alliances, notably expanding the Juniper partnership to the PTX router product line and expanding the Company's reach and business with GTT, a global Tier 1 internet network operator, enabling the Corero DDoS solution to be more widely adopted by GTT customers.

 

Notwithstanding the growth in order intake and ARR, revenue for the year ending 31 December 2022 is expected to be approximately $20.1 million (2021: $20.9 million), and therefore below market guidance. This shortfall in revenue can be attributed primarily to delays in customer decision making and buying cycles being extended which has affected customer order timing.

 

Adjusted EBITDA4 for the year ending 31 December 2022 is now expected to be in the range of $1.4 - $1.8 million (2021: $3.9 million which included non-recurring income from the forgiveness of a US Payment Protection Plan (PPP) loan of $0.6 million).

 

Cash at 31 December 2022 was $5.6 million (31 December 2021: $11.2 million). Net cash, taking into account borrowings, at 31 December 2022 was $4.4 million (31 December 2021: $8.4 million).

 

 

An announcement regarding the date of publication of the Company's audited full year results will be made in due course. 

 

Lionel Chmilewsky, Corero's CEO, said:

 

"Whilst it is disappointing to report revenues lower than previous guidance, I am encouraged by the increase in order intake and ARR, as well as the strong growth in new customer order intake, all achieved against a challenging macro-economic backdrop in the second half of 2022.

 

"Our investment across 2022 in sales and marketing initiatives has been focused on building a stronger go-to-market organisation and implementing demand generation initiatives to expand our market coverage and increase sales of Corero's solutions to new customers.

 

"The demand for DDoS protection remains robust. Throughout 2022 we observed DDoS attacks becoming increasingly sophisticated while at the same time the DDoS attack surface is expanding. With the number of recorded attacks on the rise and significant shifts in attackers' motives and goals, 2023 will require organisations to ensure they have robust DDoS defences in place.

 

"Encouragingly, we start 2023 with a solid pipeline of new business opportunities. Our focus for 2023 is to leverage our investment in sales and marketing and capitalise on our market-leading SmartWall® solutions and SecureWatch® services to drive revenue growth."

 

1 All numbers for year ending 31 December 2022 disclosed within this announcement are management estimates based on current information and are unaudited.

2 Order intake is defined as orders received from customers in the period.

3 ARR is defined as the normalised annualised recurring revenues and includes recurring revenues from contract values of annual support, software subscriptions including terms greater than one year, and from DDoS Protection-as-a-Service (DDPaaS) contracts. 

4 Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortisation excluding unrealised gains/(losses) on an intercompany loan.

 

 

Enquiries:

 

Corero Network Security plc

 Tel: +44(0)20 7390 0230

Lionel Chmilewsky, Chief Executive Officer

Phil Richards, Chief Financial Officer

 

 

Canaccord Genuity Limited (Nominated Adviser and Broker)

Tel: +44(0)20 7523 8000

Simon Bridges / Andrew Potts / Harry Rees

Vigo Consulting

Tel: +44(0)20 7390 0230

Jeremy Garcia / Kendall Hill

corero@vigoconsulting.com

 

 

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 London, UK. The Company is listed on the London Stock Exchange's AIM market under the ticker CNS. For more information, visit www.corero.com 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTSFFEFMEDSEIF
Date   Source Headline
10th Oct 20222:15 pmRNSExercise of Options and Total Voting Rights
20th Sep 20226:04 pmRNSHolding(s) in Company
20th Sep 20226:03 pmRNSHolding(s) in Company
20th Sep 20226:01 pmRNSHolding(s) in Company
20th Sep 20226:00 pmRNSHolding(s) in Company
16th Sep 202210:30 amRNSExercise of Options and Total Voting Rights
13th Sep 20227:00 amRNSUnaudited H1 2022 Interim Results
2nd Sep 20227:00 amRNSAppointment of Interim Chief Financial Officer
1st Sep 20227:00 amRNSNotice of Results & Investor Presentation
28th Jul 20221:00 pmRNSHolding(s) in Company
26th Jul 20227:00 amRNSTrading Update
14th Jul 20227:00 amRNSDirectorate Change
9th Jun 20225:32 pmRNSResult of AGM
6th May 20229:51 amRNSBlock Listing Application
29th Apr 20227:00 amRNSAnnual Report and Accounts Posting & Notice of AGM
29th Apr 20227:00 amRNSAnnual Report and Accounts Posting & Notice of AGM
26th Apr 20227:00 amRNSFull year results
22nd Apr 20229:00 amRNSDirectorate Change
13th Apr 20227:00 amRNSNotice of Results & Investor Presentation
28th Feb 20222:50 pmRNSHolding(s) in Company
17th Feb 20222:33 pmRNSHolding(s) in Company
24th Jan 20227:00 amRNSTrading Update
17th Jan 20227:00 amRNSAppointment of Chief Revenue Officer
22nd Dec 202110:35 amRNSPre-close update regarding market expectations
17th Nov 20217:00 amRNSOver $4m of Global Hosting Providers Customer Wins
20th Sep 202110:37 amRNSHolding(s) in Company
17th Sep 20212:57 pmRNSHolding(s) in Company
14th Sep 20217:00 amRNSUnaudited H1 2021 Interim Results
7th Sep 202112:09 pmRNSNotice of Results & Investor Presentation
31st Aug 20217:00 amRNSPDMR Change & Sales Organisation Strengthening
20th Jul 20217:00 amRNSTrading Update
10th Jun 20214:59 pmRNSResult of AGM
4th May 20216:15 pmRNSHolding(s) in Company
28th Apr 20217:00 amRNSAnnual Report and Accounts Posting & Notice of AGM
19th Apr 202110:55 amRNSHolding(s) in Company
13th Apr 20217:00 amRNSFull year results
8th Apr 20217:00 amRNSNew borrowings facility
6th Apr 202112:09 pmRNSNotice of Results
22nd Mar 20217:00 amRNSChange of Adviser
26th Feb 20217:00 amRNS“Partner-First” DDoS Strategy Update
22nd Feb 20212:30 pmRNSHolding(s) in Company
27th Jan 20217:00 amRNSGrant of share options
19th Jan 20217:00 amRNSTrading Update
10th Dec 20207:00 amRNSUpdate on Order Intake
7th Dec 20204:42 pmRNSSecond Price Monitoring Extn
7th Dec 20204:39 pmRNSPrice Monitoring Extension
1st Oct 20207:00 amRNSRecord Q3 Order Intake
15th Sep 20207:00 amRNSInterim Results
24th Aug 20207:00 amRNSNotice of Results
27th Jul 20206:20 pmRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.