Osirium Technologies plc (LON:OSI), a leading vendor of cloud-based cybersecurity and IT automation software, has reported its final results for the year, which were in line with its January pre-close and ahead of Allenby Capital’s previously upgraded forecasts. The company saw encouraging progress on all key performance indicators (KPIs), including bookings, annualised recurring revenue (ARR), average contract value (ACV), customer wins and renewals, and existing customers are expanding their usage of Osirium’s product set.
Financially, total bookings increased by 86% to £3.0m, with the company securing more customers, increasing average initial contract values by 93%, and enjoying high customer renewal rates of 96%. Annual recurring revenue (ARR) grew by 28% to £1.9m, and total recognised revenue increased by 31% to £1.9m. Deferred revenue stood at £2.7m, up from £1.6m in FY21. The adjusted EBITDA loss remained flat at £1.5m, with some spending normalising and investment in sales and marketing offsetting the increase in revenue. The company completed a £1m per annum cost reduction programme in January. Osirium ended the year with cash of £1.2m, which fell to £0.7m at the end of February, but an R&D tax credit of £0.6m is anticipated.
Operationally, Osirium Technologies saw increased subscriptions for its privileged process automation (PPA) and privileged endpoint management (PEM) products, both to existing privileged access management (PAM) customers and to new customers. The company secured wins in multiple new sectors and geographies, including its first US contract, which is the most developed PAM market. Many of these customers were secured via channel partners, and more than 70% of customers increased the range of services taken or licence count during FY22. 10% of customers have more than one Osirium product, with some taking all three, demonstrating the success of its ‘land and expand’ and ‘partner-first’ strategies.
Looking ahead, Osirium’s bookings and pipeline growth momentum has continued in FY23, and customer purchasing patterns are normalising post-pandemic. Key target markets continue to be healthcare, higher education and financial services, with new areas such as food manufacturing also showing potential. As knowledge of privileged security matures, sales cycles are reducing, and privileged access security is becoming a key cyber insurance requirement, driving demand. Osirium can differentiate itself by its speed of deployment and price point and is winning in competitive situations. Allenby Capital forecasts remain unchanged.
