Last checked at 18 Jul 2023 07:00
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18 July 2023
Osirium Technologies plc
("Osirium" or the "Group")
Half Year Trading Update
Strong ARR growth reflecting customer demand
Osirium Technologies plc (AIM: OSI), a leading vendor of cloud-based cybersecurity and IT automation software, announces an update on trading for the six months ended 30 June 2023.
Trading
The Board is pleased to report that Osirium's annual recurring revenue ("ARR") has increased by 34% over the 12 months to 30 June 2023 to £2.16 million (30 June 2022 ARR: £1.61 million) and by 20% since the start of the year (December 2022 ARR: £1.8 million).
Bookings for the period are expected to be at least £1.22 million (H1 2022: £1.18 million) and revenue is expected to be no less than £1.1 million (H1 2022: £0.9 million), representing a 4% and 18% increase on H1 2022 respectively. Deferred revenue at 30 June 2023 was £2.9 million (30 June 2022: £1.9 million).
Osirium has continued to grow within its target sectors in the first half, with over 20 new customers signed so far in the year. This includes several contract wins in the UK healthcare sector, where the Group has established a reputation as a key provider of privileged security. This reputation contributes to Osirium's pipeline via referrals to prospective customers and direct approaches from resellers.
ARR growth was driven by new customer wins and a high rate of renewals. A significant proportion of Osirium's customer base increased their license capacity or expanded their range of products during the period, underlining the strength of the Group's land and expand strategy.
Following receipt of the Group's research and development tax credit, as announced on 13 June 2023, the Company's cash balance as at 30 June 2023 was £0.22 million, with short-term debtors of £0.40 million. The previously announced cost savings measures identified by the Group in Q4 FY22 have been fully implemented during the period, and the Board continues to keep all costs under review with a view to reducing the timeframe by which the Group will become cash flow break-even.
The strength of Osirium's offering is reflected in its speed and simplicity of implementation and tailored user experience. Reflecting this, the Group is pleased to announce it has recently been named by independent researchers, SoftwareReviews, as a 'flagship leader' in Privileged Access Management. The report ranked Osirium number one for vendor support, while also being 'top rated' in 14 other categories including usability and intuitiveness, ease of implementation, and ease of customisation. The report, assessing 14 PAM providers, awarded Osirium a Gold Medal for its overall score of 8.7/10, outperforming other major players within privileged security1.
Outlook
The Group is pleased to report a strong start to H2 2023, with a healthy pipeline underlined by a growing pool of prospective new customers, as well as expected customer renewals, and contract expansions and upsells which are expected to contribute to an increase in ARR at FY23.
Notwithstanding the positive trading momentum in the first half of the year, the Directors anticipate that the Company will be required to raise additional capital before the end of the year and are exploring all options in this regard. The Company has also identified additional cost saving measures which are being implemented.
The Group expects to announce its interim results in September 2023.
1 https://www.softwarereviews.com/products/osirium-pam
Stuart McGregor, Chief Executive Officer of Osirium, commented:
"We are pleased to deliver a period of significant annual recurring revenue growth, reflecting the sizeable market demand for privileged security and the effectiveness our land and expand strategy.
"Enabled by our channel partner network, we are seeing our positive reputation and strong industry relationships unlocking new opportunities throughout the half. On this note, I'm delighted to see our status as an agile, easy to deploy provider recognised by SoftwareReviews.
"The momentum seen in H1 has continued to date and, with a healthy pipeline of opportunities ahead, we look forward to the second half with confidence."
Contacts: | |
Osirium Technologies plc | Tel: +44 (0)1183 242 444 |
Stuart McGregor, Chief Executive Officer | |
Rupert Hutton, Chief Financial Officer | |
Allenby Capital Limited (Nominated adviser and broker) | Tel: +44 (0)20 3328 5656 |
James Reeve / George Payne (Corporate Finance) | |
Tony Quirke / Stefano Aquilino (Sales and Corporate Broking) | |
Alma PR (Financial PR adviser) | Tel: +44 (0)20 3405 0205 |
Hilary Buchanan | osirium@almapr.co.uk |
Kieran Breheny | |
Will Ellis Hancock |
About Osirium Technologies Plc
Osirium Technologies plc (AIM: OSI) is a leading UK-based cybersecurity software vendor delivering Privileged Access Management (PAM), Privileged Endpoint Management (PEM) and Osirium Automation solutions that are uniquely simple to deploy and maintain.
With privileged credentials involved in over 80% of security breaches, customers rely on Osirium PAM's innovative technology to secure their critical infrastructure by controlling 3rd party access, protecting against insider threats, and demonstrating rigorous compliance. Osirium Automation delivers time and cost savings by automating complex, multi-system processes securely, allowing them to be delegated to Help Desk engineers or end-users and to free up specialist IT resources. The Osirium PEM solution balances security and productivity by removing risky local administrator rights from users, while at the same time allowing escalated privileges for specific applications.
Founded in 2008 and with its headquarters in Reading, UK, the Group was admitted to trading on AIM in April 2016. For further information please visit www.osirium.com.