Wallix shares are trading higher on Friday morning on the Paris Bourse, buoyed by the prospect of an imminent financial break-even, even if its first-quarter performance prompts caution.

The cybersecurity software company last night reported monthly recurring revenues (MRR) of 1.7 million euros for the first quarter, up 33.6% year-on-year, a performance in line with the previous two quarters.

On an annualized basis, recurring revenues stood at 20.6 million euros at the end of March, or 68.3% of 2023 consolidated sales, corresponding to an increase of seven percentage points year-on-year.

Quarterly sales amounted to seven million euros, up 13.7% on Q1 2023, testifying to the successful transformation of the model towards subscription (SaaS).

In a reaction note, however, analysts at Invest Securities refer to a "new disappointment" on the part of the identity and access management specialist.

"After being punished on the stock market at the end of March after having pushed back its earnings guidance to breakeven, the group published last night first-quarter sales growth of just +14%, which implies a clear acceleration in the second half to validate annual consensus expectations", the brokerage firm points out.

In its press release, Wallix confirmed that it was still aiming for positive operating income from the second half of 2024.

Oddo BHF's teams also described the start of the year as "rather timid", but also "to be put into perspective" due to seasonal effects and the ongoing switch to SaaS, which is showing strong growth.

Following this publication, Wallix shares rose by 4.5% on Friday morning, one of the most notable gains on the Paris market in mid-morning trading.

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