WANdisco Plc Trading update and Outlook (3891A)
February 02 2022 - 1:59AM
UK Regulatory
TIDMWAND
RNS Number : 3891A
WANdisco Plc
02 February 2022
2 February 2022
WANdisco plc
("WANdisco" or the "Company")
Trading update and Outlook
-- Strong momentum in Q4 through direct wins and key channel partners
-- High visibility of near-term pipeline underpins confidence in strong FY22 trading
WANdisco (WAND.L), the LiveData company, announces a trading
update for the year ended 31 December 2021 ("FY21").
Trading Update
The Company saw strong trading in Q4, following significant
contract wins both directly and with its key cloud channel partners
including Azure, AWS and IBM, as well as its principal analytics
partners Databricks and Snowflake. As a result, the Company's
preliminary unaudited revenues are expected to be in-line with
current market estimates, upgraded in December 2021. Q4 bookings
increased 30% to $8.4m from $6.5m in Q4 2020. For FY21, bookings
increased 17% to $11.9m from $10.2m in the prior period. Ending
RPO(1) (Remaining Performance Obligations), is expected to be
approximately $9.4m for FY21, up 92% year on year.
Toward the end of FY21, the Company took steps to realise
efficiencies in its business model through prudent sales
reorganisation and effective cost management. The Company has a
strong balance sheet, with WANdisco's year-end cash position
expected to be approximately $27.8m, a 32% increase on the prior
year, with $1.2m in trade receivables.
In the last year, the business has made steady progress in its
transition to a cloud-centric, consumption-based model, resulting
in more predictable revenues (unbilled backlog, or RPO), reduced
discounting (metered pricing) and increased upsell opportunities.
The cloud platform model of the "Commit to Consume" contract
structure, where a customer is obligated to move a minimum amount
of data over a given time, is now the standard for WANdisco. This
helped drive strong RPO and bookings growth in H2 2021 as WANdisco
benefits from a stream of committed revenues that have the
potential to increase as customers' data needs expand.
This successful transition has also allowed WANdisco to deepen
its strategic relationships with key partners including Oracle. The
Company recently announced that Oracle will provide fully funded
access to WANdisco's LiveData Migrator solution to support its
enterprise customers and partners in accelerating data lake
migrations to the cloud. Oracle has a large, defined pipeline of
opportunities driven by its cloud services business.
The General Availability of the LiveData Platform for Azure was
successfully launched in H2 2021. The announcement signified the
completion of a multi-year joint project with Microsoft to
integrate WANdisco's technology into its cloud fabric and unlock
the Azure ecosystem for global blue-chips - one of the most
important initiatives in WANdisco's history to date.
Outlook
Looking ahead, the high visibility of WANdisco's near term
business pipeline underpins confidence in a strong trading
performance in 2022. The Company sees significant market
opportunities in IoT-driven deals and expansion into new verticals
in the coming year.
David Richards, CEO and Chairman of WANdisco, commented:
"The WANdisco team has worked incredibly hard to lay the
groundwork for a significant acceleration in new customer wins
through an effective restructuring of our sales organisation. We
are now seeing the benefit of this labour as we look to secure
larger deals, in new markets through our growing, market leading
product portfolio.
"The new contract wins we saw in Q4 directly and through key
industry partners are testament to the strategic progress we have
achieved across the business this year, while the General
Availability of the LiveData Platform for Azure - announced in
October 2021 - was a critical step in converting WANdisco's new
business pipeline.
"We are excited by the opportunities we are seeing in the market
to enter new verticals and are well placed to capitalise on an
expected increase in IoT-driven deals this year. Q4 saw a
significant increase in bookings and RPO and this momentum,
combined with high near-term visibility, gives us confidence in our
ability to execute on the Company's strong Q1 and H1 2022
pipeline".
Footnotes
1) RPO is defined as committed unbilled backlog plus deferred revenue.
ENDS
For further information, please
contact:
WANdisco plc via FTI Consulting
David Richards, Chief Executive
Officer and Chairman
Erik Miller, Chief Financial Officer
+44 (0)20 3727
FTI Consulting 1137
Matt Dixon / Kwaku Aning / Tom
Blundell
+44 (0)20 7710
Stifel (Nomad and Joint Broker) 7600
Fred Walsh / Richard Short
Panmure Gordon (Joint Broker) +44 (0)20 7886
Erik Anderson / Alina Vaskina 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 LiveData company. WANdisco's LiveData Cloud
Services enable enterprises to create an environment where data is
always available, accurate and protected, creating a strong
backbone for their IT infrastructure and a bedrock for running
consistent, accurate machine learning applications. With zero
downtime and zero data loss, WANdisco LiveData Platform keeps
geographically dispersed data at any scale consistent between
on-premises and cloud environments allowing businesses to operate
seamlessly in a hybrid or multi-cloud environment. For more
information on WANdisco, visit www.wandisco.com .
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