WALLIX GROUP (ALLIX) H1 2024 earnings summary

Executive summary

• Achieved 8.7% year-over-year revenue growth in H1 2024 to €15.1 million, driven by a shift to subscription-based recurring revenue and strong SaaS and OT security performance.

• Recurring revenue now represents 71.6% of turnover, with monthly recurring revenue up 30.2% year-over-year to €1.8 million and ARR at €22.1 million.

• Operating and net losses remained stable compared to H1 2023, with improved operating expenses/turnover ratio.

• Strategic acceleration in SaaS and OT segments, with new zero-trust platform launches and expanded partnerships.

• Recognized as a visionary in Gartner's 2024 Magic Quadrant for PAM, the only European player among nine global leaders.

Financial highlights

• H1 2024 revenue: €15.1 million (+8.7% YoY); recurring revenue: €10.8 million (+32.2% YoY); perpetual licenses: €3.4 million (-29.5% YoY).

• Operating loss: €6.2 million; net loss: €5.6 million, both nearly unchanged from H1 2023.

• Gross cash position at June 30, 2024: €12.8 million; free cash flow: -€3.8 million in H1 2024.

• Gross financial debt: €8.7 million, with 87% maturing in over three years.

• Sales per employee stable at €127,000 in H1 2024, with a target of €150,000 for breakeven.

Outlook and guidance

• Targeting breakeven or return to operating profit in H2 2024, with a projected revenue increase supported by seasonality and recovery of delayed license sales.

• Expects recurring revenue to reach 80-90% of total by 2025, driven by SaaS and subscription growth.

• Anticipates a full profitable year in 2025, supported by expense control, operational efficiency, and regulatory tailwinds like the NIS2 Directive.

• Commercial pipeline expanded by 64% for Q3/Q4 2024 vs. previous five quarters, expected to positively impact late 2024 and 2025 sales.

• Performance plan aims for >€150k revenue per FTE and further OPEX reductions.