Osirium Technologies ends year in line with upgraded expectations

Cloud-based cybersecurity specialist Osirium Technologies said in an update on Monday that, subject to audit, it was expecting to report bookings and revenue for the financial year just ended of at least £3m and £1.9m, respectively.

The AIM-traded firm said that would be up from prior-year respective figures of £1.6m and £1.4m, and would be in-line with recently-upgraded market expectations.

It said its annual recurring revenue in December totalled £1.8m - an increase of 28% over the prior financial year - and deferred revenue at year-end on 31 December stood at £2.7m, providing it with “good visibility” as it started the new financial year.

Following the placing and subscription announced on 22 November, the company’s cash balance at year-end totalled £1.1m.

Osirium said it continued to maintain its rate of customer acquisition in 2022, with new customers signed from an increasing range of sectors and geographies, including a first contract signed in the United States.

Alongside that, the group's average initial contract value for new customers increased 93% over the course of the year, reflecting a recognition across its target sectors and geographies of the need to fortify their cybersecurity defences over the long term.

In addition to its core ‘Privileged Access Management’ (PAM) product, there had been a considerable growth in demand for Osirium's ‘Privileged Process Automation’ and ‘Privileged Endpoint Management’ products in the year, both as standalone products to new customers and as add-ons to PAM contracts.

Looking ahead to 2023, the group said it would continue to focus on growing the services it delivers to its customers through cross-selling and upselling, while expanding its customer base through new customer acquisition.

“2022 was another year of progress against our financial and strategic objectives, in which we have succeeded in growing our average contract value and securing more multi-year contracts, which provide a good visibility of revenue for future years and a greater opportunity for up-selling and cross-selling our products and services,” said chief executive officer Stuart McGregor.

“Our momentum in customer acquisition has continued in the second half and our sales pipeline underpins our confidence going into the new financial year.

“We are confident we have the right teams in place across our direct sales channel and our global channel partner network to continue to expand our presence across new and existing sectors and geographies.”

McGregor said that, as it stated at its fundraise in November, the board's focus was on reducing the timeframe to the company becoming cash flow break-even through revenue growth and tight cost control.

“With an expanded customer base, an innovative product suite and healthy demand for privileged security, we approach 2023 with confidence in the group's growth prospects.”

At 1144 GMT, shares in Osirium Technologies were down 3.33% at 3.87p.

Reporting by Josh White for Sharecast.com.