Wynyard Group Delivers 63% Revenue Growth
Wynyard Group announces financial results for the year to 31 December 2013
Auckland, 24 February 2014 – Wynyard Group (WYN) has emerged as a market leader in critical threat assessment and
advanced crime analytics software. The problems Wynyard’s software help solve including drug smuggling, human
trafficking, gun running, financial and cyber crime continue to grow in scale, complexity and global impact.
Wynyard has secured a strong position in the high growth advanced crime analytics category with a powerful hard-to-copy
software platform. Advanced crime analytics is a new discipline that combines the power of big data and advanced
analytics, with leading crime science research and tradecraft to solve and prevent crime.
Wynyard raised new capital through an initial public offering (IPO) in 2013. This capital provided the company with the
confidence and resources to rapidly expand its international sales, marketing and services operations, and continue
investment in its risk management and advanced crime analytics product.
As a result of the amalgamation undertaken prior to and as a lead up to Wynyard’s NZX listing, the reported final
results incorporate the nine-month trading period to 31 December 2013. The results for this nine-month period show that
Wynyard Group reported audited revenue and other income of $17.0 million with a net loss after taxation of $10.1
million, including one-off initial public offering and listing costs.
Consistent with the Wynyard Group Investment Statement and Prospectus, dated 6 June 2013, the Directors believe that it
is appropriate to consider the full twelve-month trading results to 31 December 2013 against prior year actuals and
pro-forma financial information.
TWELVE MONTH PERFORMANCE HIGHLIGHTS TO 31 DECEMBER 2013
Unaudited Pro-Forma 2013 Full Year Actual2012 Full Year ActualPro-Forma 2013 Full Year ProspectiveTotal Revenue$21.7m$13.3m$21.5mNet Loss After Tax($11.2m)($3.7m)($10.1m)Cash at Bank$17.0m$0.6m$20.8mLicenced End-Users110,80059,600Revenue per Employee$162,000$125,000$160,000
REVENUE BY TYPE
Unaudited Pro-Forma 2013 Full Year Actual2012 Full Year ActualYoY ChangePro-Forma 2013 Full Year ProspectiveRecurring$12.8m$9.2m+39%$12.8mNon-Recurring$5.0m$1.6m+213%$3.4mProfessional Services$3.3m$1.7m+94%$5.1mOther$0.6m$0.7m-14%$0.2mTotal$21.7m$13.3m+63%$21.5m
COMMENTARY
2013 was an exciting year for Wynyard Group, with the major focus following IPO being deployment of capital and
resources to expand Wynyard’s global customer base and extend Wynyard’s product leadership position.
1. Wynyard’s total revenue grew by 63% over the same period last year to $21.7 million, exceeding the IPO prospective
revenue forecast
Recurring revenue was 59% of total revenue and increased 39% to $12.8 million. Recurring revenue includes
software-as-a-service (SaaS) subscription revenue together with software maintenance and support revenue from cloud and
on-premise software deployments.
Non-recurring licence revenue, a key driver of future recurring revenue, increased by 213% to $5.0 million with strong
new licence sales across all product lines.
Professional services revenue increased by 94% year-on-year to $3.3 million. Wynyard delivered its total revenue target
with $1.8m less professional services effort than its IPOprospective financial information forecast. This is a
favourable metric, substantiating Wynyard’s commercial-off-the-shelf product value proposition and the future
scalability of Wynyard’s deployment model.
By product, revenue from Wynyard Risk Management grew by 38% to $6.5 million and Advanced Crime Analytics revenue
increased 42% to $11.9 million. Advanced Crime Analytics revenue includes sales of Wynyard’s intelligence,
investigations and digital forensics solutions.
By industry, 43% of Wynyard’s revenue was derived from the financial services sector, 24% from government and 33% from
other sectors - mainly critical national infrastructure.
2. Wynyard expanded its footprint into South East Asia, opened new offices in the UAE and USA, and grew the Wynyard team
from 106 to 151 full time employees
Wynyard now has offices in six strategic locations across three regions and has nearly doubled the size of its sales and
marketing team.
In 2013, 64% of Wynyard’s revenue was from Asia Pacific where the company secured new contracts with New Zealand Police
and Serious Fraud Office, two key Australian Federal Government agencies, Thai Customs Department, Queensland Rail and
one of the region’s primary intelligence agencies.
EMEA (Europe, Middle East and Africa) contributed 27% of Wynyard’s total revenue following the launch of Wynyard’s
financial crime detection SaaS platform in the United Arab Emirates and United Kingdom. New contracts were signed with a
number of UAE-based exchange bureaus and Saudi Arabia’s leading wealth management institution. In Europe, Wynyard’s
contract with a leading UK crime investigation agency was extended, one of the world’s top five banks became a customer
and Wynyard was selected by a recognised inter-governmental organisation responsible for coordinating a global effort
against drugs and trans-national organised crime.
In June 2013, Wynyard opened a new office in Arlington, VA. The Americas contributed 9% of Wynyard’s revenue, including
a new contract with a top 20 company in the Fortune 500. In the United States, Wynyard made good progress on building a
sales pipeline in financial services and state and federal government.
3. Wynyard Group signed 47 new paying customers and increased licenced end-users by 86% from 59,600 to 110,800
Wynyard is focused on embedding its core advanced crime analytics platform in strategic growth customers and sectors and
aggressively growing the licenced end-user base.
By focusing on core platform penetration, Wynyard is positioning itself as the new industry standard for advanced crime
analytics software. By maximising the licenced end-user base, Wynyard is growing its captive market for new software
features and content in Wynyard’s product roadmap. These new features and content will grow recurring revenue and
activate a network-effect across the customer organisation, adjacent agencies and globally where front-line users
collaborate operationally, share workflow or data.
4. Wynyard won the 2013 Most Innovative Hi-Tech Software Product award at the NZ H-Tech Awards and was named Asia Pacific
Category Winner in the 2014 RiskTech100 report by Chartis
Wynyard is now recognised as a leader and covered by the world’s top technology research analysts Gartner, Forrester and
Chartis. Managing Partner at Chartis, Peyman Mestchian stated, “Organisations are looking to take advantage of link
analysis, predictive modeling, artificial intelligence and real-time tools. Wynyard’s focus on smart tools for
operational risk, anti-money laundering and anti-fraud management position it as an emerging leader in this space.”
Wynyard delivered new releases of its Risk Management and Advanced Crime Analytics solution in 2013, as well as
pre-configured solutions for mobile device analytics, advanced traffic analysis, gun crime and open-source intelligence.
In 2013, Wynyard appointed an Advisory Board of former London Metropolitan Police and US Federal Bureau of
Investigations directors, and formed an alliance with the University College London (UCL) Jill Dando Institute of
Security and Crime Science (JDI). These appointments and partnerships when combined with Wynyard’s proven software
design and engineering expertise, deep industry experience and international distribution network ensure Wynyard is well
positioned to extend its product leadership position.
5. Total expenditure, excluding IPO costs, was $32.6 million, $1.5 million higher than IPO prospective financial
information and in line with Wynyard’s November trading update
Additional expenditure was incurred on new business development initiatives, including bringing forward the recruitment
of new sales and professional services staff. This had a concurrent effect of increasing on-boarding costs including
induction, training and other overhead costs. Wynyard also increased investment in SaaS infrastructure in the Middle
East and the United Kingdom.
One-off costs for professional and advisory fees associated with the establishment of Wynyard as a stand-alone business
in six jurisdictions were higher than forecast. This was offset by the timing of capital expenditure depreciation and
software amortisation.
6. Net cashflow for the year was $16.5 million against a forecast of $20.3 million, with $2.3 million being a cash
collection timing difference
The timing difference is between revenue recognition and invoicing of software licences and the ultimate cash
collection. Higher than anticipated IPO costs of $0.5m, increased operating expenditure, and other working capital
differences account for the balance.
7. Looking forward, Wynyard is focused on increasing its financial services and government customer base in the Americas
and expanding its partner channels to market
Wynyard Group’s prospective financial information forecast in its June 2013 prospectus was $27 million revenue in the
year to 31 December 2014. While it is only two months into the new financial year, given Wynyard’s sales pipeline, and
the size and growth profile of the risk management and advanced crime analytics software market, the Board is
increasingly confident the group is likely to exceed this target. During the first quarter of 2014, management are
continuing to review organisation and product readiness for acceleration of its Americas and global partner channel
strategy.
Wynyard Group Managing Director, Craig Richardson, said the company would continue to invest for growth in 2014 and
2015.
“Wynyard is strongly positioned in the new fast growing advanced crime analytics market. 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.”
Additional commentary is included in the Wynyard Group Limited 2013 Financial Statements (specifically note 26), which
have also been released today. Wynyard’s 2013 Annual Report will be sent to shareholders at the end of March 2014.
About Wynyard Group: Know the threats, connect the dots and uncover the truth.
Wynyard Group is a market leader in critical threat assessment and advanced crime analytics software for government,
financial services and critical national infrastructure. Wynyard’s powerful software helps assess threats, surface
hidden relationships give new meaning to events and identify people of interest.
Wynyard customers include Fortune 500 companies and leading government security agencies. The company has offices in the
United Kingdom, United States, Canada, United Arab Emirates, Australia and New Zealand.
For more information visit www.wynyardgroup.com
ENDS