Corero Network Security Plc · LSE:CNS
Corero Network Security — FY2022 Earnings Presentation
21 slides from Corero Network Security's earnings presentation, April 2023
Slide 1: FY 2022 Results
FY 2022 Results Jens Montanana, Executive Chairman Phil Richards, CFO Tanya Alfonso, CRO April 2023
Slide 2: Agenda
Agenda_ Corero Introduction Operational Highlights Financial Highlights & Summary Market and Corero Strategy Summary & Outlook
Slide 3: Corero Introduction
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Slide 4: About Corero
About Corero ◎ Corero Network Security is publicly traded on the London Stock Exchange AIM market (under CNS.L). Headquartered in London with offices near Boston and in Edinburgh. ◎ Corero are the Distributed Denial of Service (DDoS) Protection Specialists, providing an intelligently automated solut
Slide 5: 20+ Years of Evolving DDoS Attacks
20+ Years of Evolving DDoS Attacks Coordinated Mirai Code: Memcached blows away the Organized Crime: US Bank Attacks: The Tbps era of attack size record: Extortion Grew to 200 Gbps, and attacks, OVH 1.3 Tbps GitHub MafiaBoy DDoS: Massive Attack continue today 1.7 Tbps US ISP Yahoo!, Amazon, Dell, La
Slide 6: Corero Threat Intelligence Report Highlights
Corero Threat Intelligence Report Highlights 300% 25% 60% 24% INCREASE IN INCREASE IN INCREASE IN ATTACK DURATIONS CHANCE OF REPEAT ATTACK WITHIN CARPET BOMB ATTACKS HIGH-PACKET RATE ATTACKS >60 MINUTES A WEEK 6
Slide 7: Solutions That Fit Any Infrastructure
Solutions That Fit Any Infrastructure SmartWall solution • A single solution to meet customer needs now and future Incremental Corero value • Monetising DDoS protection as a service CORE SMARTWALL PLATFORM SecureWatch Managed Service supports entire solution • Attack-time assistance
Slide 8: Operational Highlights
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Slide 9: Operational Highlights
Operational Highlights 32 98% 13% 13% NEW CUSTOMERS CUSTOMER SUPPORT GROWTH IN ANNUAL RECURRING $23.9M ORDER INTAKE (2021: $21.2 M) SECURED IN 2022 RENEWAL RATE REVENUE 12
Slide 10: Financial Highlights and Summary
Financial Highlights and Summary
Slide 11: Financial Highlights
Financial Highlights $20.1M $2.6M $14.4M $4.4M REVENUE FOR THE YEAR EBITDA (PY: $4.0M) ARR (PY: $12.8M) NET CASH AT 31 DECEMBER (PY: $20.9M) 2022 (PY: $8.4M) 14
Slide 12: Financial Summary – Income Statement
Financial Summary – Income Statement Revenue $20.1m (2021: $20.9m) Gross profit $17.5m (2021: $17.8m) Operating expenses (excluding share-based payments) $14.5m (2021: $13.9m) EBITDA $2.6m 15 (2021: $4.0m)
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights $m 31 December 2022 31 December 2021 Highlights: Non-current assets 15.7 15.3 Current trade and other 5.5 3.3 receivables Trade receivables increase Cash & cash 5.6 11.2 reflects seasonality of sales cycle equivalents Total Assets 26.8 29.8 Increased working capital Tota
Slide 14: Group Cash Flow Waterfall
Group Cash Flow Waterfall Highlights: Ongoing R&D during the year of $1.7m (2021: $1.9m) Borrowings of $1.6m repaid during the year Increased working capital impacted by payment cycles 17
Slide 15: Market and Corero Strategy
Market and Corero Strategy
Slide 16: DDoS Market Opportunity
DDoS Market Opportunity DDoS Protection is Essential Addressing a Provider $2.1bn Enterprise On-Premises Cloud Solutions Solutions Market growing at 12% CAGR Infrastructure Protection Essential Protection Global Service Availability Hardware or software DDoS Defense Keeping businesses deployments fo
Slide 17: Business Strategy 2023
Business Strategy 2023 Markets we Serve Sales Channels T2/T3 Service Providers Direct Hosting Providers Reseller Channel Partners SaaS Providers Strategic Alliance Partners Business Drivers Differentiators Risk Management Best in Class Service Revenue Growth Easy to work with Customer Experience Aut
Slide 18: Customer DDoS Protection Journey
Customer DDoS Protection Journey DDoS PROTECTION as a SERVICE Per-Tenant visibility into DDoS attacks Tenant Portal for Alerting & Reporting Subscribe/Upsell/Retain Tenants DDoS PROTECTION Full visibility into DDoS attacks Victim Tenant(s) not impacted Other Tenants unaffected DDoS MITIGATION Basic
Slide 19: Summary
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Slide 20: Summary & Outlook
Summary & Outlook o Encouraging growth in ARR and bookings against a more challenging macro-economic backdrop. o Our USP combines market-leading technology with service. o Positioned for growth in 2023 with strong operational team and platform. 23 o Significant opportunities within addressable marke
Slide 21: Thank You
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