WANdisco shares gained 5.8% to 270p in early afternoon trading on Wednesday following a drop in revenue to $7.1 million for FY 2021 against $10.5 million in FY 2020.
WANdisco reported an adjusted EBITDA loss of $29.5 million compared to $22.2 million the year before, along with a statutory loss from operations of $27.6 million against $34.3 million.
The group noted a growth in cash overheads to $41.5 million compared to $36.9 million the last year, and cash on 31 December 2021 of $27.8 million from $21 million year-on-year.
The company mentioned a series of operational highlights, such as its announcement of LiveData Migrator for Azure General Availability, which is critical to pipelie conversion.
WANdisco also launched a Commit to Consume contract structure to be issued widely across its future client base, which contracts a customer to move a minimum level of data over a set amount of time.
It signed the first Commit to Consume contract in 2021 with an existing US Telecom customer at a value of £1 million over five years, with a significant opportunity for additional consumption growth.
“Along with the improvements made to the business in H2 2021, we announced that our product developed for Microsoft, Live Data Migrator for Azure was now generally available. Achieving General Availability offers potential, new and existing customers increased confidence in our products and simplifies the ordering process, which is essential to converting on our growing pipeline,” said WANdisco CEO David Richards.
“We also shifted from multi-year subscription contracts to the preferred transacting method for cloud customers with the adoption of Commit to Consume contracts.”
“The Commit to Consume contract structure allows customers to try before adopting our solutions with very little risk, whilst allowing us to capture the growth in consumption that logically stems from the adoption of cloud-based solutions.”
The firm pointed out that its channel partner ecosystem continued to offer revenue opportunities, with its partnership with IBM securing it a three-year $3.3 million contract with a large unnamed North American investment bank for the utilisation of its LiveData Migrator, with a 50% revenue share.
WANdisco noted that its snowflake partnership continued to complement its existing Databricks relationship and consolidated the group’s market position in supporting machine learning applications.
WANdisco commented that its transition to a cloud-centric, consumption-based model over 2021 has helped it deepen its relationships with key partners including Oracle, and allowed the company an improved near-term visibility on revenue and its general pipeline.
The firm said its reorganisation of sales and go-to market functions has started to pay off, with improved H2 2021 results, lower operating costs and expansion into new verticals and use cases for products.
The term of strong trading in Q1 2022 has reportedly continued into Q2 2022, providing the board with confidence that its FY 2022 is set to deliver increased revenues, bookings and Ending RPO for FY 2022.
“We made significant strategic progress in FY21 reorganising our go-to-market operation and cost structure. This has provided us greater revenue visibility, accountability and efficiencies to drive our business forward, and I am confident that we will continue to convert on our strong pipeline of cloud migration opportunities in FY22,” said Richards.
“Our achievements in Q421 provided a springboard for our new business acceleration into Q122 and we are extremely excited about the significant market opportunities that lay ahead of us for the rest of this year.”
“We are well placed to capture significant opportunities as we look to enter new verticals and capitalise on an expected increase in IoT-driven deals.”