Corero Network Security Plc · LSE:CNS

Corero Network Security — H1 2017 Earnings Presentation

18 slides from Corero Network Security's earnings presentation, September 2017

  1. Slide 1: Corero Network Security plc Interim Results

    Corero Network Security plc Interim Results 6 months ended 30 June 2017 Ashley Stephenson (CEO) Andrew Lloyd (President and EVP Sales & Marketing) Andrew Miller (CFO) © Corero 2017 www.corero.com 1

  2. Slide 2: What We Do

    What We Do Raw Intern et • Revenue-protecting real-time DDoS Mitigation product optimised Raw Internet for service and hosting providers Raw Internet – Available for rapid deployment within the provider’s own infrastructure delivering compelling ROI Good Traffic Attack Traffic • Revenue and reputati

  3. Slide 3: Overview – Half Year ended 30 June 2017

    Overview – Half Year ended 30 June 2017 • Overall revenue flat at $4.8m as contribution • EBITDA loss of $3.4m including unrealised FX • Net cash $5.1m at 30 June 2017 ($8.7m at 30 from legacy products reduced as expected loss of $0.3m (H1 2016: loss of $2.5m) June 2016) • Strong performance of flag

  4. Slide 4: SmartWall 2017 YTD Material Wins

    SmartWall 2017 YTD Material Wins 2017 contract material wins follow success in 2016 with contract values Number of SmartWall customers increasing 90 80 70 February 2017 Digital enterprise Cloud services provider contract win ($1.0m) 60 Largest single customer win to date 50 40 April 2017 GTT Communi

  5. Slide 5: Strategy and Delivery

    Strategy and Delivery Strategy H1 2017 Progress Establish SmartWall as the leading solution for real- ✓ 51% increase in SmartWall revenue time DDoS protection Maintain competitive advantage ✓ Launched 100Gbps product ✓ SmartWall virtual appliance available Q3 Grow and deepen customer base ✓ 13 new c

  6. Slide 6: P&L Summary

    P&L Summary 6 months 6 months 12 months SmartWall revenue growth 51% over H1 2016 (67% 2017 2016 2016 over H2 2016) $’000 $’000 $’000 Revenue 4,813 4,791 8,772 Gross profit 3,538 3,789 6,701 Gross profit % 74% 79% 76% Operating expenses (6,935) (6,274) (11,847) EBITDA loss (3,397) (2,485) (5,146) De

  7. Slide 7: Cash Flow Summary

    Cash Flow Summary 6 months 6 months 12 months 6 months 6 months 12 months 2017 2016 2016 2017 2016 2016 $’000 $’000 $’000 $’000 $’000 $’000 (Loss)/profit (4,757) (4,020) (17,263) Cash flows from investing activities Adjustments for: Purchase of intangible assets - (3) (32) Amort'n of acquired intang

  8. Slide 8: Net Assets Summary

    Net Assets Summary 30-Jun-17 30-Jun-16 31-Dec-16 30-Jun-17 30-Jun-16 31-Dec-16 $’000 $’000 $’000 $’000 $’000 $’000 Assets Liabilities Non-current assets Current liabilities Goodwill 8,991 17,983 8,991 Trade and other payables (1,611) (2,346) (1,728) Acquired intangible assets 50 139 82 Deferred inco

  9. Slide 9: 20+ Years of Evolving DoS Attacks

    20+ Years of Evolving DoS Attacks Mirai Code Entering the Tbps era of attacks 500 Gbps Hong Kong attack France swarmed after terror attack OVH Anon hits Church of Scientology PlayStation & Xbox hit at Christmas Massive attack launched against DYN Spammers Spamhaus attack: discover Reported to reach

  10. Slide 10: Frequent, low volume, short duration attacks dominate

    Frequent, low volume, short duration attacks dominate These are the attacks most likely to impact your business © Corero 2017 www.corero.com 10

  11. Slide 11: DDoS Trends

    DDoS Trends © Corero 2017 www.corero.com 11

  12. Slide 12: DDoS Trends (cont’d)

    DDoS Trends (cont’d) © Corero 2017 www.corero.com 12

  13. Slide 13: Understanding the Impact of Attacks

    Understanding the Impact of Attacks • Availability and Security of your services and applications are a top requirement of your customers. • Downtime or Compromise equate to: – Lost revenues and additional operational costs – Unhappy clients with increased costs for retention of existing customers a

  14. Slide 14: Go-to-Market Model

    Go-to-Market Model Appropriate sales channels for target markets to aggressively grow revenue Segment # of 10G links Sales Cycle Product Fit Sales Target Markets Channel 3 Years 1 SI NTD 500 Partner Service Provider 1100 Digital Enterprise 2 3 Quarters vNTD GTM x86 Partner Hosting Provider 50 10G 10

  15. Slide 15: Growth Vectors

    Growth Vectors • GTM partners a key focus for growth by Cloud leveraging their established channels to market: GTM Partners – Perpetual license sales through meet in the market or reseller GTM Partners DDPaaS relationships – License sales (vNTD) DDPaaS • DDPaaS (introduced in late Q4 2016) Perpetual

  16. Slide 16: Strategy and H2 2017 Focus

    Strategy and H2 2017 Focus Strategy H2 2017 Focus Establish SmartWall as the leading solution for real- • Continue to scale and grow SmartWall installed base time DDoS protection • Raise Corero profile with analysts and press Maintain competitive advantage • New DDoS attacks defences • Additional fo

  17. Slide 17: Outlook

    Outlook • Market drivers – DDoS attacks growing problem for all – DDoS is expected to remain a significant cyber threat in the near future • Smokescreen attacks, advanced botnets, more complex, increasing frequency with automation, … – DDoS appliance market to increase to over $1.4bn in 2021 (up fro

  18. Slide 18: Thank you

    Thank you © Corero 2017 www.corero.com 18

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