The French publisher Wallix Group reduced its operating losses by around €2.5 million in the first half of 2021, while maintaining a revenue increase of more than 20%. The company’s management is aiming for a return to profitability in the second half.
It’s time for a return on investment for Wallix. During the first half of 2021, the French publisher of cybersecurity solutions generated €10.3 million in revenue, thus benefiting from growth of 28% compared to the same period last year. The operating result has admittedly remained in the red (-2.66 M€), but is nevertheless recovering notably compared to the loss (-5.12 M€) suffered 12 months earlier. These last values and their variation are almost identical to those recorded in net income. For the record, although its revenues increased by 23% in 2020, Wallix had suffered a 6.9% decline in operating income at the time. The company did not hesitate to inflate its operating expenses by nearly €6 million, in particular to hire and open new subsidiaries.
“After a phase of major investments to establish its technological leadership in the field of protection of access and digital identities and to extend its commercial network, the WALLIX Group is today reaping the fruits of this strategy of conquest, with a clear improvement of its operating profit in the first half of the year and the prospect of achieving profitability in the second half of 2021”, says Jean-Noël de Galzain, Chairman of the Management Board of Wallix Group.
International business increases to 40% of turnover
Efforts undertaken to develop its business internationally enabled the publisher to generate €4.2 million (+51%) in turnover outside France in the first half of 2021. More limited, growth in the Hexagone stood at +16% for €6.2 million in invoices. All geographic areas combined, license sales increased by 22% while contracts signed in subscription mode (SaaS + managed services) doubled to €850,000. Including revenue from maintenance, the recurring share of revenue stood at 50% between January and June last, compared to 48% a year earlier. Wallix Group claimed 1,600 customers as of June 31.