Wynyard beats revenue forecast, recruitment compounds costs

Wynyard beats revenue forecast, recruitment compounds costs
Software company Wynyard Group has boosted its subscriptions and license sales revenue, but recorded a $10.1 million loss.

Wynyard Group, which makes software to protect organisations from security threats and crime, has posted $21.7 million in revenue for the 12 months to 31 December 2013, slightly more than forecast in its public offering document.

Recurring revenue from subscriptions to its software grew 39 percent to $12.8 million, while license sales revenue was up 213 percent to $5 million. The company grew professional services revenue to $3.3 million, a 94 percent increase.

Most of its product revenue came from Advanced Crime Analytics at $11.9 million, followed by Wynyard Risk Management (up 38 percent to $6.5 million). Advanced Crime Analytics includes its intelligence, investigations and digital forensics software. Wynyard says 43 percent of revenue for the year came from financial services, 24 percent from government and 33 percent from the critical national infrastructure sector and others.

However, the group recorded a net loss after tax of $10.1 million for the nine trading months to 31 December last year, including IPO costs. Audited revenue and other income for that period was $17 million.

Total expenditure outside IPO costs was $32.6 million in 2013, $1.5 million higher than forecast in its IPO documentation.

"Additional expenditure was incurred on new business development initiatives, including bringing forward the recruitment of new sales and professional services staff," the company said in its announcement to the NZX.

"This had a concurrent effect of increasing on-boarding costs including induction, training and other overhead costs."

The company says it also grew its investment in software as a service infrastructure in the Middle East and the UK. Managing Director Craig Richardson says the company is strongly positioned in the advanced crime analytics market this year.

"While the end game for Wynyard is a highly profitable company with lifetime customers, investing for growth and continued momentum is critical at this stage to extend Wynyard’s product leadership position and global market share,” he says.

Last year Wynyard Group opened offices in the UAE and US and it now has 151 fulltimee staff. It made 64 percent of its revenue from Asia Pacific last year, adding contracts with New Zealand Police and the Serious Fraud Office, two Australian federal government agencies, the Thai Customs Department and Queensland Rail.

In 2013 it signed 47 new paying customers and increased licensed end users by 86 percent to 110,800.