Windward tops full-year expectations in 2023

Maritime artificial intelligence (AI) company Windward said in a trading update on Thursday that its strong performance throughout 2023 exceeded market expectations.

The AIM-traded firm said it expected full-year revenue to show a 31% increase, reaching $28.3m, compared to $21.6m in 2022.

Its adjusted EBITDA loss was anticipated to significantly decrease to $5.1m, narrowing from $12.1m in the prior year.

In the second half, Windward saw substantial revenue growth of 43%, with an adjusted EBITDA loss of $1.3m, compared to $6.6m in the second half of 2022.

Customer numbers also saw substantial growth, exceeding 200 by the end of the year, compared to 132 in December 2022.

The board said the expansion drove its annual contract value (ACV) to increase 35% to $34.5m as of 31 December, setting a strong foundation for continued revenue growth in 2024.

Commercial ACV now accounted for 30% of total ACV, up from 26% at the end of 2022.

Windward said it maintained a healthy financial position, with a net cash balance of $17.4m at the end of the period, compared to $22.1m a year earlier.

The company's board said it was confident that its cash resources were more than sufficient to support Windward's path to profitability and continued cash generation.

“2023 has been a record year for Windward, winning multiple new customers while expanding our offering,” said co-founder and chief executive officer Ami Daniel.

“We have delivered strongly on our execution and believe Windward's opportunity set has expanded.

“As the evolving events in the Russia-Ukraine conflict and the security situation in the Red Sea demonstrate, the need for visibility and actionable insight across all facets of the maritime industry continues to grow, driving adoption of our maritime AI platform.”

Windward said it would release its audited results for the year ended 31 December in late March.

At 1555 GMT, shares in Windward were up 16.95% at 103.5p.

Reporting by Josh White for Sharecast.com.