REG - Corero Network Sec. - Trading Update

Corero Network SecurityAnnouncement

07/01/2025 07:00

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RNS Number : 3061S  Corero Network Security PLC  07 January 2025

 

 

7 January 2025

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

Corero Network Security plc

("Corero" or the "Company")

 

Trading Update

 

Delivered good progress in FY 2024 with ARR up 16% to $19.5 million and order
intake up 13% to $28.2 million

 

Increased order intake and ARR growth underpin continued momentum for the
business into 2025

 

Corero (https://www.corero.com/) (AIM: CNS)
(https://www.londonstockexchange.com/stock/CNS/corero-network-security-plc/company-page)
(OTCQX: DDOSF) (https://www.otcmarkets.com/stock/DDOSF/overview) , the
distributed denial of service ("DDoS") protection specialists, provides the
following trading update for the year ended 31 December 2024(1) ("FY 2024").

 

The Group has traded well across the year with sales momentum building
steadily as management continued to accelerate Corero's go-to-market strategy.
Trading across FY 2024 is expected, subject to audit, to be broadly in line
with market expectations(4), with solid financial progress delivered across
the following key performance indicators:

 

·    ARR(2) increased +16% to $19.5 million year over year

·    Order Intake(3) ("Orders") increased +13% to $28.2 million

·    EBITDA(6) expected to grow to between $2.1 million to $2.5 million
from $1.8 million in FY 2023

·    Over 70% increase in new customer acquisition

·    Continued high customer retention at 97% with strong pipeline for FY
2025

·    Revenue increased +10% to $24.6 million

 

Annualised Recurring Revenues ("ARR"), a key reporting metric for the Group,
increased 16% to $19.5 million as at 1 January 2025 (ARR at 1 January 2024:
$16.9 million), driven by continued demand for Corero's subscription-based and
DDoS Protection as-a-Service ("DDPaaS") products.

 

Subject to audit, revenue for FY 2024 is expected to be approximately $24.6
million, an increase of 10% from the prior year (FY 2023: $22.3 million),
whilst EBITDA is expected to be in the range of $2.1 million to $2.5 million
inclusive of an IFRS 2 share-based charge of $0.5 million (FY 2023: $1.8
million inclusive of an IFRS 2 share-based charge of $0.2 million). The
fundamentals of our business remain positive and position Corero well for FY
2025 and beyond. Management is encouraged by the FY 2024 exit rate of ARR and
new Orders and remains confident that 2025 market expectations(5) will be
achieved.

 

Order intake, which reflects revenues recognised over the lifetime of each
contract, grew 13% to $28.2 million for FY 2024 (FY 2023: $24.8 million).

 

Cash at 31 December 2024 was $5.3 million, with no outstanding debt (net cash
31 December 2023: $5.2 million). Cash receipts totalling $4.8 million related
to new customer orders invoiced in Q4 2024 are due and expected to be received
in early Q1 2025.

 

 

Carl Herberger, CEO of Corero, commented:

 

"2024 has been a year of significant change for Corero and I am pleased the
business has continued to grow as we further strengthened our go-to-market and
technology capabilities during my first twelve months as CEO.

 

We continue to accelerate our transition to a SaaS-based revenue model which
is creating a more robust financial footing for the business with ARR
increasing at a much higher rate, which has an impact on short-term revenue
growth.

 

The alignment of our sales and marketing activities to our accelerated
go-to-market strategy has generated strong Order and ARR growth and our
pipeline has never been healthier. Continued demand for Corero's
market-leading solution is supported by our impressive customer retention and
renewal rates.

 

In Q4 2024, we announced the launch of our new product platform, CORE,
demonstrating Corero's ability to innovate and enhance our position as a
technology leader.

 

I am confident Corero will leverage its strong business fundamentals and
enhanced capabilities to deliver continued growth in 2025 and beyond."

 

(1) All numbers for year ending 31 December 2024 disclosed within this
announcement are management estimates based on current information and are
unaudited.

(2) ARR is defined as the normalised annualised recurring revenues and
includes recurring revenues from contract values of annual support, software
subscriptions including terms greater than one year, and from DDoS
Protection-as-a-Service ("DDPaaS") contracts.

(3) Order intake is defined as orders received from customers in the period.

(4) 2024 market estimates being $25.35 million revenue and $2.45 million
EBITDA inclusive of IFRS 2 charges.

(5) 2025 market estimates being $28.80 million revenue and $3.75 million
EBITDA inclusive of IFRS 2 charges.

(6) EBITDA is defined as earnings before interest, tax, depreciation, and
amortisation.

 

 

 

Enquiries:

 

 Corero Network Security plc                                     Tel: +44(0)20 7390 0230
 Carl Herberger, Chief Executive Officer
 Chris Goulden, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser and Joint Broker)  Tel: +44(0)20 7523 8000
 Simon Bridges / Andrew Potts / Harry Rees

 Zeus Capital (Joint Broker)                                     Tel: +44(0)20 3829 5000

 Ben Robertson / Alexandra Campbell-Harris

 Vigo Consulting                                                 Tel: +44(0)20 7390 0230
 Jeremy Garcia / Kendall Hill
 corero@vigoconsulting.com (mailto:corero@vigoconsulting.com)

 Harbor Access (Investor Relations)                              Tel: +1 475 477 9401

 Jonathan Paterson

 

About Corero Network Security

 

Corero Network Security is a leading provider of DDoS protection solutions,
specialising in automatic detection and protection solutions with network
visibility, analytics, and reporting tools. Corero's technology protects
against external and internal DDoS threats in complex edge and subscriber
environments, ensuring internet service availability. With operational centres
in Marlborough, Massachusetts, USA, and Edinburgh, UK, Corero is headquartered
in London and listed on the London Stock Exchange's AIM market (ticker: CNS)
and the US OTCQX market (OTCQX: DDOSF).

 

For more information, visit www.corero.com (http://www.corero.com/) , and
follow us on LinkedIn (https://www.linkedin.com/company/corero/)  and X
(https://twitter.com/Corero) .

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