TIDMWAND
RNS Number : 8698H
WANdisco Plc
11 April 2022
11 April 2022
WANdisco plc
("WANdisco" or the "Company")
Trading Update and Outlook
Strong momentum in Q1 with multiple new contract wins
Unaudited Q122 bookings of $5.8m: up significantly from $1.1m in
Q121
General Availability of LiveData Migrator and LiveData Migrator
for Azure accelerates new business momentum
WANdisco (WAND.L), the LiveData company, announces a trading
update for the quarter ended 31 March 2022 ("Q122").
Trading Update
The Company saw strong trading in Q122 following significant
contract wins for its LiveData Migrator (LDM) solution, both
directly and via key cloud channel partners including Azure, AWS
and IBM, as well as its principal analytics partners Databricks and
Snowflake. As a result, the Company's unaudited Q122 bookings are
$5.8m: up significantly from $1.1m in Q121. Ending RPO(1)
(Remaining Performance Obligations) is expected to be approximately
$14m for Q122: up significantly from $4.2m in Q121. The continued
high visibility of the Company's near term business pipeline
underpins confidence in strong 2022 trading.
The Company continues to have a strong balance sheet, with
WANdisco's quarter-end cash position expected to be approximately
$21.3m, with $2.4m in trade receivables.
In Q122, the Company secured significant contracts for LDM from
the Internet of Things ("IoT") service providers, migrating data
from on-premise edge platforms to the cloud. Key to these wins was
the Company's cloud agnostic solution that moves large amounts of
data from on-premise Hadoop to multiple different clouds. A
strategic selling point to customers is that LDM can move data to
any of the cloud providers, essentially commoditizing the large
cloud platforms. With LDM, a customer can rapidly change the cloud
destinations of its data. This provides ultimate ownership of data
to the customer, and allows customers to avoid vendor lock-in and
arbitrage cloud pricing and functionality. LDM reinstates control
of data back to the customer. WANdisco was chosen for its ability
to support the migration of data to several cloud providers.
Additionally, the Company's ability to migrate data at scale
without requiring any system downtime, along with its capacity to
automatically migrate data changes as they occur, ensuring data
consistency, were key factors in securing these contracts.
The Company won several contracts during the first quarter with
the potential for expanded use cases and additional
Commit-to-Consume revenues for WANdisco in the future. Key
contracts included:
-- In February, WANdisco completed a significant data migration
for a major client to Microsoft's Azure cloud, through LDM. The
client owns and operates Canada's largest railway and is currently
engaging WANdisco on future use cases, including in IoT data, with
the potential to move another 30 petabytes of data to the cloud per
year.
-- In March, having signed a $1.5m Commit-to-Consume contract
with a top ten global telco, the Company announced its first
significant follow-on deal with that customer one week later, worth
$1.2m, driven by an increase in data throughput for one of the
customer's end-customer smart meter operators.
-- This 'land and expand' momentum continued toward the end of
the first quarter, with WANdisco recently announcing a major IoT
deal with a multinational insurance group, operating in over 30
countries, with the potential to expand across geographies as the
customer migrates increasing amounts of data over time. In the same
week, WANdisco announced a contract win with a top 10 global
retailer - an existing client of three years - using LDM to create
a new, focused environment for machine learning and other
analytical workloads. WANdisco continues to deliver new value
through existing customer relationships by providing critical
solutions for new use cases and expansions.
-- The Company is seeing continued momentum in cloud migration
opportunities, recently winning another contract worth $213k, to
migrate a subset of data for a world leading computer vendor from
its existing Hadoop environment, with data volumes expected to
increase over time.
The General Availability of LDM and LDMA (LiveData Migrator for
Azure) was essential in the acceleration of business in Q122.
Achieving the General Availability milestone in October 2021 has
provided potential customers with greater assurance about their
ability to embark on petabyte-scale data migration projects with
WANdisco and, as such, is steadily unlocking a pipeline of growth
opportunities, especially in IoT.
Additionally, the Company's successful transition to a
cloud-centric, consumption-based model during the last year has
allowed WANdisco to deepen its strategic relationships with key
partners including Oracle. WANdisco announced in January that
Oracle will provide fully funded access to WANdisco's LiveData
Migrator solution to support its enterprise customers and partners
in accelerating data lake migrations to the cloud. WANdisco
announced the first pre-pay deal through the new Oracle partnership
during the first quarter to accelerate data lake migrations for
Oracle customers. WANdisco's deepening relationship with Oracle has
unlocked a large, defined pipeline of opportunities, with strong
commercial potential, driven by its cloud services business.
Outlook
Looking ahead, the high visibility of WANdisco's near term
business pipeline underpins confidence in continued strong trading
in 2022. The Company is well placed to capture significant market
opportunities in high-quality IoT-driven deals and expand into new
verticals in the course of the year.
David Richards, CEO and Chairman of WANdisco, commented:
"The General Availability of LDM and LDMA in H2 last year laid
the groundwork for a significant acceleration in new customer wins
this quarter. The customer value that this solution provides is
clear as we are securing larger deals, in new markets such as IoT,
in addition to migrating Hadoop workloads to the cloud to
facilitate analytics.
"Additionally, we are seeing a shortening of the sales cycle due
to cloud endorsement, but also due to the Commit-to-Consume model
for customers. They are getting massive functionality and utility
from their data, they are not required to purchase upfront
licenses, and in turn the Company is seeing limited need or
pressure for discounting on price."
"We are excited by further market opportunities to enter new
verticals and are well placed to capitalise on an expected increase
in IoT-driven deals this year. Q122 saw a step-change in bookings
and RPO and this strong momentum, combined with high near term
visibility, gives us confidence in our ability to execute on the
Company's strong Q2 and 2022 pipeline".
Footnotes
1) Ending RPO is defined as Beginning RPO plus Bookings minus Recognised Revenue.
ENDS
For further information, please contact:
WANdisco plc via FTI Consulting
David Richards, Chief Executive
Officer and Chairman
Erik Miller, Chief Financial Officer
+44 (0)20 3727
FTI Consulting 1137
Matt Dixon / Kwaku Aning / Tom
Blundell
+44 (0)20 7710
Stifel (Nomad and Joint Broker) 7600
Fred Walsh / Richard Short
Panmure Gordon (Joint Broker) +44 (0)20 7886
Erik Anderson / Alina Vaskina 2500
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation (No
596/2014). The person responsible for this announcement is Erik
Miller, CFO.
About WANdisco
WANdisco is the LiveData company. WANdisco's LiveData Cloud
Services enable enterprises to create an environment where data is
always available, accurate and protected, creating a strong
backbone for their IT infrastructure and a bedrock for running
consistent, accurate machine learning applications. With zero
downtime and zero data loss, WANdisco LiveData Platform keeps
geographically dispersed data at any scale consistent between
on-premises and cloud environments allowing businesses to operate
seamlessly in a hybrid or multi-cloud environment. For more
information on WANdisco, visit www.wandisco.com .
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END
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