Nixu Oyj: Nixu Corporation: CEO's review for Q3 2023

Macroeconomic situation continues to impact growth

July-September 2023:

• Revenue EUR 13.1 million (Q3/2022: EUR 14.4 million); change -9%
• EBIT EUR -805 thousand (Q3/2022: EUR 642 thousand)
• Adjusted EBIT EUR -548 thousand (Q3/2022: EUR 642 thousand)

January-September 2023:

• Revenue EUR 45.0 million (Q3/2022: EUR 43.0 million); growth 5%
• EBIT EUR -1,888 thousand (Q3/2022: EUR 88 thousand)
• Adjusted EBIT EUR 159 thousand (Q3/2022: EUR 63 thousand)

Financial guidance for 2023:

Nixu estimates its revenue to be EUR 66-70 million and profitability to improve.

CEO Teemu Salmi:

The third quarter of 2023 shows a continued challenge in the business environment, mainly driven by the macroeconomic situation. Nixu clients are postponing investments in the cybersecurity area, impacting both growth and order intake for the group. In the third quarter, we saw a decline in revenue by 9% to EUR 13.1 (14.4) million. Profitability for the quarter, measured in adjusted EBIT, declined by EUR 1.2 million year-over-year, ending at EUR -0.55 (0.64) million. 
For comparability reasons, it is worth noting that in Q3 2022, we announced a large one-time order with a value of EUR 1.1 million, positively impacting our revenues and profitability.

The weak business situation is also reflected in the orders booked, which stand at EUR 42.8 (46.8) million, declining by 9% year-to-date. The book-to-bill ratio ended at 95% for the third quarter and at 95% also year-to-date. This shows that there has been a level drop in orders booked, but it is flat in the quarter compared to the full year situation, showing signs of stabilization in the business development.

From a year-to-date perspective, Nixu is showing growth in both revenue and profitability. Year-to-date revenue is EUR 45.0 (43.0) million showing a growth rate of 5% and the adjusted EBIT ending at EUR 0.16 (0.06) million.

Managed services and recurring revenue streams are growing steadily as a proportion of the total revenue, which is one of the cornerstones of the Next Nixu strategy launched earlier this year. The underlying development and need for cybersecurity services are there, very much driven by increased activity on the cyber threat side and geopolitical developments. 

Despite the challenging macroeconomic situation, we see a positive market development year-to-date. The market maturity for outsourcing cybersecurity services is increasing. More cybersecurity regulation and increasing cyber threats are factors for our clients to increase their cybersecurity posture and investments.

In February 2023, DNV announced a public tender offer to acquire all outstanding shares and stock options in Nixu. Therefore, Nixu is currently in the process of being delisted from the Nasdaq stock exchange market in Helsinki, and the current visibility is that it will be concluded during Q4 2023. This also, most probably, means that this will be the company's last publicly released result report.

Finally, I would like to take the opportunity to thank all Nixu employees, our clients, and investors for their continued trust.

Nixu Corporation

Further information:
Chief Executive Officer Teemu Salmi, Nixu Corporation
telephone +358 9 478 1011, e-mail: teemu.salmi@nixu.com

Distribution:
Nasdaq Helsinki Ltd
Principal media
www.nixu.com

Nixu in brief:
Nixu is a cybersecurity services company that has been shaping the future through cybersecurity for over three decades. We make cyberspace a secure place and help our clients ensure business resilience with peace of mind. Nixu has Nordic roots, and we employ around 400 of the best professionals in Finland, Sweden, the Netherlands, Denmark, and Romania. Our experts are safeguarding the most demanding environments of some of the largest organizations in the world across all industries. Nixu shares are listed on the Nasdaq Helsinki Stock Exchange.
www.nixu.com