WALLIX GROUP (ALLIX) Q2 2024 TU earnings summary

Executive summary

• Achieved 30.2% year-over-year growth in monthly recurring revenue (MRR) as of June 30, 2024, with 3,100 active contracts and a retention rate above 95%.

• Recurring revenue now represents 71.6% of H1 2024 turnover, up from 58.8% in H1 2023.

• First half 2024 turnover reached €15.1 million, an increase of 8.7% year-over-year.

• Transitioned to a recurring revenue model, with 73% of activity now subscription-based, strengthening business predictability.

• Recognized as a market leader in Privileged Access Management by major analysts.

Financial highlights

• H1 2024 consolidated turnover: €15.1 million, up 8.7% year-over-year.

• Recurring revenue (subscriptions + maintenance) totaled €10.8 million, representing 71.6% of H1 2024 revenue.

• Subscriptions revenue surged 80% year-over-year to €3.5 million; maintenance revenue grew 17.1%.

• License revenue declined 29.5% to €3.4 million, reflecting the shift to a subscription model.

• France posted over 10% growth despite political uncertainties and business model transition.

Outlook and guidance

• Positive operating profit expected from H2 2024, driven by subscription growth and operational efficiency.

• Expects SaaS revenues to grow with the launch of the WALLIX One platform and new contracts.

• Anticipates significant impact from the NIS2 Directive, especially from 2025 onward.

• Pipeline for large OT security contracts in the Middle East and Germany could boost 2025 revenues.

• Focus on scaling up without additional investment, leveraging SaaS and subscription models.