Nixu Corporation: CEO’s review for Q3 2022

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Nixu Corporation Stock Exchange Release, October 13, 2022, at 8.30 a.m. EEST

Another growth quarter with good business development in all business segments

The third quarter of 2022 showed continued great progress on the profitable growth journey for Nixu.

In the quarter, we could see:

  • Revenue EUR 14.4 million (Q3/2021: EUR 11.1 million); growth 29%
  • EBITDA EUR 1,115 thousand (Q3/2021: EUR 194 thousand)
  • Adjusted EBITDA EUR 1,115 thousand (Q3/2021 EUR 328 thousand)

For the year-to-date, Nixu stands at:

  • Revenue EUR 43.0 million (Q3/2021: EUR 37.9 million); growth 14%
  • EBITDA EUR 1,492 thousand (Q3/2021: EUR 999 thousand)
  • Adjusted EBITDA EUR 1,467 thousand (Q3/2021 EUR 1,526 thousand)

Financial guidance for 2022:

On 11 October, Nixu changed its guidance for the full year 2022. Nixu estimates its revenue to grow to approximately EUR 60 million and the full year EBITDA-% to grow up to 4-6% .

Revenue during 2021 was EUR 51.8 million and EBITDA was EUR 1.5 million.

CEO Teemu Salmi:

Cybersecurity continues to become even more topical due to geopolitical developments and an increased understanding of the threat landscape on all levels in all industries.

For Nixu, this means continued growth in all our markets and especially in Finland with growth by 38 % and in Denmark with growth by 29 % year-over-year. Orders booked have also continued to grow significantly being   more than 100%.

From a business segment perspective, the managed services transformation is proceeding ahead of plan. During the third quarter, we could see net growth in the number of clients served by Nixu. Managed services revenue growth was 30% year-over-year. Profitability is clearly developing positively in line with the growing revenues.    

Expert services are also showing great growth of 28% in revenue, and profitability is clearly moving in the right direction.

Profitability YTD now stands at 3.5% EBITDA which is a clear development in the right direction. However, we are not satisfied with this level, so the improvement activities that have started already in early Q3 will continue throughout the year and into 2023.

Client satisfaction remains at a high level at 69 when it comes to the net promoter score (NPS) in the third quarter. This is a great platform for retaining and attracting new clients for the future to secure our continued profitable growth journey.

Customer highlights from Q3 include among other things:

  • Nixu received a new order to deliver a cybersecurity solution to a current customer.  The order is valued at around EUR 2.9 million, of which about EUR 2.2 million is expected to be recognized as revenue this year. EUR 1.1 million was recognized as revenue in Q3. The delivery of the cybersecurity solution will last for a maximum of three years.
  • Nixu’s Identity and Access Management solution (IAM) and IOXIO’s Dataspace service have been successfully used in the first Smart City use case in the city of Jyväskylä. The solution enables fully remote, easy, and secure control of access to both digital services and physical spaces.

The great people of Nixu enable high client satisfaction, and we have also seen an improvement in employee satisfaction in the third quarter. Attrition remains on a high level, improvement of which is a prioritized activity within Nixu. We will continue to work hard to ensure that Nixu remains a great place to work for existing employees and an attractive employer for new talent.

Our strategic review of the company is progressing according to plan, and it will be completed by the end of this year. In early 2023, we will come back to our employees, clients, and the market in general with our growth and financial ambitions for the coming three years, providing clear targets for the end of 2025.

Nixu Corporation

Further information:
Chief Executive Officer Teemu Salmi, Nixu Corporation
telephone +46 70 656 95 57

Nasdaq Helsinki Ltd
Principal media

Nixu in brief:
Nixu is a cybersecurity services company on a mission to keep our digital society working. Our passion is to help organizations embrace digitalization securely. Partnering with our clients, we provide practical solutions for ensuring business continuity, easy access to digital services and data protection. We aim to provide the best workplace for our team of about 400 cybersecurity professionals with a hands-on attitude. Nixu’s roots are in Northern Europe, but we serve our enterprise clients worldwide. Nixu’s shares are listed on Nasdaq Helsinki’s official list.