Sheffield-headquartered IT infrastructure business WANdisco has reported plummeting losses, as well as a decline in revenue, in its annual results this morning.
For the year to 31 December 2018, the company reported revenues of $17m, down from $19.6m in the same period the year before. Pre-tax losses grew to $19.4m, dropping further from the $14m pre-tax losses the year before. The listed firm’s adjusted EBITDA loss was $9.4m – deepening from the $600,000 the previous year.
WANdisco said: “The increased loss was due to the strategic investments we are making in our channel partner relationships and engineering capabilities to drive long-term growth. These investments coincide with lower bookings and a reduction in revenue as we continue to transition toward a subscription model.”
Despite this, the company reported robust performance, saying it had a strong pipeline and had completed a successful $17.5m fundraiser in February 2019, indicating it was optimistic for the year ahead.
David Richards, chief executive officer and chairman of WANdisco, said: “This has been an important year for WANdisco, with substantial progress in both partnerships and product to unlock the significant potential in cloud computing. We have significantly extended our relationship with Microsoft, gaining co-sell status that allows our WANdisco Fusion platform to be sold as a standard offering with Microsoft’s Cloud Solution, Azure. Throughout the year we have continued to build on this foundation and have closed a number of strategic deals with high profile Microsoft customers.
“Cloud has firmly overtaken on-premises, and as businesses continue that transition they are using a variety of cloud vendors. LiveData for Multicloud plays a critical role in that environment, enabling businesses to replicate their data assets, seamlessly between cloud regions, or different cloud vendors.
“We also have begun to see a significant structural shift in the composition of our revenue base, from large, difficult-to-forecast on-premises transactions toward more predictable, annual recurring cloud revenues. We see significant opportunities to expand our addressable market in cloud and as annual recurring revenues increase over time, develop a smoother, increasing revenue profile for our firm.“