On Thursday, Wallix reported a deepened loss for the 2023 financial year and postponed its key objective of reaching financial equilibrium this year, announcements that sent its share price down by more than 10% this morning on the Paris Bourse.

Last night, the cybersecurity software publisher reported an operating loss of almost 9.5 million euros for 2023, compared with a shortfall of 7.1 million euros in 2022.

CEO Jean-Noël de Galzain explains the steepening of these losses by the end of an investment cycle focused on enriching the offering and strengthening the workforce in the 16 countries where the group is present.

Annual sales reached a record level of over 30 million euros last year, representing growth of 20%.

Monthly recurring revenue (MRR), a closely watched indicator, stood at 1.6 million euros at the end of 2023, with growth still accelerating, at 32.9% compared with the end of 2022.

In its press release, Wallix expresses confidence in its ability to maintain high growth rates in recurring revenue and generate positive operating income from the second half of 2024.

However, analysts at Invest Securities point out that the company had previously indicated that it was targeting breakeven operating profit for the full 2024 financial year, and not for the second half of the year.

'The 2024 trajectory therefore seems likely to be revised downwards', the research firm points out.

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