Disappointing first half figures for data software firm
Listed data software company WANdisco has announced revenues for the six months ended 30 June 2021 of $3.4/£2.5m (H1 2020: $3.6m/£2.7m).
The Sheffield-based firm made a pre-tax loss of $20.3m/£15m (H1 2020: $13.9m/£10.3m loss) and an adjusted EBITDA loss of $14.2m/£10.6m (H1 2020: $11.9m/£8.9m).
It says its “disappointing” first half performance was linked to delays with general availability with its Microsoft product, leading to a smaller volume of consumption deals in half one.
General availability of WANdisco’s Azure service is expected in the next few weeks, which the company says is a critical step in converting pipeline customers.
And the business says it is making progress in transitioning its business model to a cloud-centric consumption basis, which will increase the predictability of its revenue.
David Richards, chief executive officer and chairman of WANdisco, said: “The first half of 2021 has been a period of both learning and tireless execution, as WANdisco laid the groundwork for significant acceleration in customer wins.
“Two factors impacted our topline financial performance in H1.
“First, was underestimating the importance and timing of general availability for our Azure product. As a business-critical operation, potential customers wanted the assurance that general availability provides.
“We expect to be able to announce general availability shortly, fully opening this pipeline opportunity.
“Second, where we had expected an initial wave of smaller volume projects, demand was in fact led by large scale strategic migrations.
“It has now become clear that a data first approach to this datalake migration movement is the only viable approach for Bluechip organisations, leading to more complex projects with longer execution timelines.
“With our product now launched on both Azure and AWS, we have also been focused on transitioning our business model to a cloud-centric consumption model to align our revenue streams with that of our partners.
“This change will lead to greater predictability of revenue in the medium to long term, with revenue phased to align with consumption.
“Complementing our existing relationship with Databricks, we have partnered with Snowflake to accelerate movement of data into their Data Cloud, consolidating WANdisco’s market position in supporting machine learning.”