13 Oct 2022 07:00
13 October 2022
WANdisco plc
("WANdisco" or the "Company")
Q3 and YTD 2022 Trading Update
· Record quarterly bookings of $34m; YTD $61.2m
· Accelerating commercial momentum, supported by multiple multi-million-dollar contract wins
· Robust pipeline underpins confidence in continued progress in Q4
· FY bookings now expected to be meaningfully ahead of current consensus expectations
WANdisco (WAND.L), the data activation platform, is pleased to announce a trading update for the quarter and nine months ended 30 September 2022.
Trading Update
Bookings in Q3 2022 grew 2,382% year-on-year to US$34m (Q3 2021: US$1.37m). For the nine months ended 30 September 2022 bookings grew 1,649% year-on-year to $61.2m from $3.5m in the comparable period in 2021.
Ending RPO1 ("Remaining Performance Obligations") is expected to be approximately $62.8m as at 30 September 2022; up significantly from the $3.1m at the end of Q3 2021.
The Company ended the period with a strong balance sheet, with WANdisco's quarter-end cash position expected to be approximately $26.3m, with a further $10.3m in trade receivables.
Commercial Momentum
During the period the Company closed a $25m agreement with a top ten global communications customer, representing the fourth consecutive contract signed with that customer. This follow-on deal comes as this customer sees a continued proliferation of smart meter data, alongside new Internet of Things ("IoT") data needs in the automotive sector. The cumulative contracts from this customer now total $39.3m during 2022.
Also during the period, the Company announced that it had signed a follow-on agreement worth $7.1m with a large European automotive components supplier. This follows an initial commit-to-consume contract signed with that customer, valued at a minimum of $5m as announced on 4 July 2022. This follow-on contract comes as the initial data to be transferred now exceeds the volume of data agreed in the original contract.
Both of these commercial relationships demonstrate WANdisco's opportunity, and ability, to land and expand deals using the commit-to-consume model. As these customers generate more data, WANdisco continues to expect the volume of data to be transferred by these customers to increase providing a significant long-term opportunity for the Group and visibility over bookings and predictability of revenues.
David Richards, CEO and Chairman of WANdisco, commented:
"The contracts signed during the period provide further evidence of our confidence that we have the right product, at the right time with a commit-to-consume revenue model which is resonating with customers. A number of the customers we have won during 2022 and those in our pipeline have scope for significant expansions as services around the data collected are rolled out.
We remain confident in demonstrating further progress over the remainder of the year both in terms of consumption and further client wins. At this 9-month mark of the year, our bookings performance has already exceeded current market consensus estimates for the year2. As such, we now expect bookings for the year as a whole to be meaningfully ahead of current expectations, underpinned by our confidence that further bookings progress will be made as we move through the fourth quarter."
Footnotes
1) Ending RPO is defined as Beginning RPO plus Bookings minus Recognised Revenue.
2) Current consensus expectations for bookings is U$60m
ENDS
For further information, please contact:
WANdisco plc | via FTI Consulting |
David Richards, Chief Executive Officer and Chairman | |
Erik Miller, Chief Financial Officer Kam Bansil, Investor Relations | +44 (0)20 7039 1901 |
FTI Consulting |
+44 (0)20 3727 1137 |
Matt Dixon / Kwaku Aning / Tom Blundell |
|
Stifel (Nomad and Joint Broker) |
+44 (0)20 7710 7600 |
Fred Walsh / Richard Short |
|
Panmure Gordon (Joint Broker)
Erik Anderson / Alina Vaskina / Dougie McLeod |
+44 (0)20 7886 2500 |
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (No 596/2014). The person responsible for this announcement is Erik Miller, CFO.
About WANdisco
WANdisco is the first and only data activation platform for accelerating digital transformation at scale. WANdisco makes infinite data actionable across clouds and enterprises in real time. WANdisco customers unleash the business value of the cloud with zero downtime, data loss, or disruption to fuel AI and machine learning, create new services, and transform businesses. For more information about WANdisco, visit www.wandisco.com.