‘Below expectations’ revenue for listed software company
Software business WANdisco has said its revenue for the year ended 31 December 2019 was below expectations, in a trading update published today.
Total revenue fro the Sheffield-based firm is expected to be approximately $16m (£12.3m) alongside a year-end cash balance of $23.3m (£17.9m), which the board is confident will enable the company to achieve cash flow breakeven.
WANdisco adds that it delivered strong sequential revenue growth in the second half of 2019 (c. 67%).
Toward the end of 2019, a small number of significant deals for the company slipped into 2020.
The majority of these deals are within the company’s growing Microsoft channel, where customers have elected to wait for public availability of the firm’s embedded Azure product, Fusion Resource Provider (FRP).
However, the Board says it “fully expects” these deals to close in 2020 and notes they are not competitive tenders.
The joint project with Microsoft brings WANdisco into the data fabric of the Azure cloud. Today’s trading update explains this is the most important initiative in the company’s history.
David Richards, chief executive officer and chairman of WANdisco, said: “2019 was a significant year for WANdisco.
“We delivered on our primary strategic goal, cementing our partnership with Microsoft to embed Fusion into Azure, allowing customers to use Fusion as if it was a native Azure offering. We are now focused on bringing the product to general availability which we expect to facilitate a greater volume and velocity of deals.
“The future of analytics and in particular machine learning and artificial intelligence is in the cloud. Our partnership with Databricks highlights the growing demand for non-disruptive solutions for bringing data to the cloud. In this regard we are uniquely positioned.
“Having successfully raised $16.5 million from existing shareholders in November 2019, we have secured the balance sheet and are well positioned to capitalise on our cloud opportunities in 2020 and beyond and achieve the important milestone of cash flow breakeven.
“While 2019 did not meet our financial expectations, the product and strategic progress is significant, and we enter 2020 more confident than ever.”
WANdisco expects to announce results for the year ended 31 December 2019 in mid-March.
