Continued hypergrowth in monthly recurring revenue and targets confirmed

• Monthly recurring revenue (MRR) up 23.7% as of September 30, 2024;
• Recurring business represented 73.5% of consolidated turnover for the first nine months of 2024 (up 12.5 percentage points year on year);
• Financial targets confirmed: hypergrowth in recurring business for full-year 2024, sequential turnover growth and generation of an operating profit in the second half of 2024 and in 2025.

Paris, November 7, 2024 - WALLIX (Euronext ALLIX), a European cybersecurity software developer and expert in identity and access management (IAM) and privileged access management (PAM), announces its business performance for Q3 2024.

Jean-Noël de Galzain, Chairman and Chief Executive Officer of WALLIX Group, said : “In a French climate oscillating between a “wait-and-see” attitude following the dissolution of the National Assembly and the euphoria generated by the Paris 2024 Olympics, we are continuing our hypergrowth trend in recurring business, driven by deployment of the subscription model and expansion of the client portfolio. With recurring business representing 73.5% of turnover at the end of Q3 2024, our business model offers excellent predictability of future turnover and cash flows, which is both crucial and reassuring in the current market environment.

The measures implemented to develop our business model along with the investments made in marketing resulted in a 64% increase in commercial pipeline creation during Q2 and Q3 2024 compared to the previous five quarters. This gives us a solid basis to continue the hypergrowth trend in recurring business until the end of the year and into 2025. We should therefore increase our market share across all regions of the Europe, Middle East, Africa segment in which the Company has a particularly strong foothold. 

Meanwhile, thanks to cost optimization measures and operational efficiency improvements, we are aiming to return to profitability in the second half of the current financial year, as announced. We are also reiterating our confidence in WALLIX's ability to generate profitable growth in financial year 2025. This will prove to be a pivotal year in which the regulatory environment, particularly the NIS2 Directive and Dora regulation in Europe, along with the overall geopolitical context, are expected to continue making cybersecurity essential to the deployment of digital solutions in companies and plants worldwide.”

Recurring business up over 30%, solid business growth

As of September 30, 2024, monthly recurring revenue (MRR) amounted to €1.9 million, up 23.7% compared with the previous year.

Strategic regions and traditional markets posted hypergrowth:

• In France, MRR as of September 30, 2024 was up 21.0%. Despite a political environment that has dampened performance since June, business momentum has remained highly positive, driven by small and midsize companies and the gradual migration of existing clients from a licensing model to a subscription model.
• The Europe, Middle East, Africa (EMEA) segment excluding France recorded growth of 31.3%. The Middle East-Africa region, the second largest after France, maintained its excellent performance, posting growth of nearly 47%. Several major contracts have been signed, particularly in the Middle East energy sector and the overall European OT sector.

Consolidated turnover was up 13.4% in Q3 2024 at €7.8 million, reflecting an upswing compared to first-half growth of 8.7% in line with the announced target. Consolidated turnover for the nine months ended September 30, 2024 totaled €22.9 million, up 10.2%. Recurring business (subscriptions + maintenance) amounted to €16.9 million over the first nine months of the year, driven by hypergrowth in subscription revenue (up 80.0%). Recurring business represented 73.5% of consolidated turnover for the period, up 12.5 percentage points year on year.

Return to profitable growth confirmed from the second half of 2024

In light of the booming market, WALLIX is confident in its ability to maintain hypergrowth in recurring business. Moreover, by the end of the 2024 financial year the Group expects to benefit from a catch-up effect in licensing sales deferred in France since June. In view of this expected upswing in Q4 business combined with cost reduction measures, the Group is targeting an operating profit for the second half of 2024.

2025 should benefit from even stronger market momentum, driven by a more stringent regulatory environment with NIS2 and Dora in Europe, and the full effect of the savings plan implemented by WALLIX. The Group is therefore confident in its ability to achieve positive operating income in 2025.

Next publication: Full-year 2024 turnover, February 6, 2025

ABOUT WALLIX

WALLIX is a European cybersecurity software developer operating worldwide. Founded in 2003, WALLIX is now a world leader in identity and access security recognized by the most prestigious analyst firms. Its mission is to provide a simple and secure identified access service, so that our customers can operate securely everywhere in digital and industrial environments.

WALLIX solutions are distributed by a network of over 300 resellers and integrators worldwide, and WALLIX supports over 3,000 organizations across more than 90 countries in securing their digital transformation. OT.security by WALLIX is a brand dedicated to digital access and identity security in industrial environments.

WALLIX affirms its digital responsibility and undertakes to help build a trusted European digital space. In 2023, WALLIX was awarded the gold medal for its non-financial rating, obtaining an EthiFinance score of 72/100, well above the tech sector average of 47/100.
The Company has been listed on Euronext (ALLIX) since 2015. The founders and directors are the major long-standing shareholders alongside investment structure TDH (Thierry Dassault Holding).

www.WALLIX.com | [email protected]

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