MEDIA RELEASE
WYNYARD GROUP FULL YEAR AUDITED RESULTS FOR 2014
WYNYARD DELIVERS REVENUE GROWTH AND IS STRONGLY POSITIONED TO TAKE ADVANTAGE OF GROWING SERIOUS CRIME
25 February 2015, Auckland – Wynyard Group, a market leader in advanced crime-fighting software and services, today released its audited results
for the year to 31 December 2014.
Wynyard Chief Executive Officer Craig Richardson said the results justify confidence in Wynyard’s progress and growth
strategy.
“In the middle of 2014 we made the strategic decision to focus on larger contracts and expand Wynyard’s government
business. These decisions are aligned with demand we see for our solutions to address global growing serious crime
problems. These decisions are starting to deliver the uplift and higher quality of revenue we expected.”
KEY PERFORMANCE HIGHLIGHTS
Performance highlights for the year to 31 December 2014 include:
1. In mid-2014, Wynyard turned its focus to larger contracts and expanding its government business to deliver
sustainable growth and higher quality revenue
- Wynyard reported record revenues of $15.9 million in 2H14 and $9.0 million in 4Q14
- Government customer sales revenue increased from 24% to 37% with significant new contracts signed including a leading
European-based justice agency, a national security bureau fighting organised crime and terrorism, and a multi-agency
justice sector program for the management of child sex offenders
- Software licence revenue increased by 62%, driven by demand for Wynyard’s Advanced Crime Analytics solution
- Recurring revenue remained high at 53% of total revenue
- Total income increased from $21.7 million [1] to $26 million and the company has built a strong sales pipeline
2. Wynyard raised $35 million in new capital through a placement and share purchase plan to increase sales and services
staff, develop partner sales channels and invest in its market leading big data analytics platform
- Full time employees increased from 151 to 228, as the United States, Middle East and European operations expanded
- Partner channel sales increased from 1% to 10% of total revenue confirming the strength of Wynyard’s go-to-market
strategy
- Wynyard’s next generation big data crime analytics platform is on track for release in1H15
3. Wynyard is now strongly positioned as a leader in a new high growth market where demand is fueled by growing global
serious crime problems
- Wynyard is focused on advanced crime analytics solutions for helping fight serious organised crime, financial crime,
cyber crime and new generation terrorism in global markets
- The company will continue to expand its operations and direct sales resources in its established key regions of New
Zealand, Australia, United States, United Kingdom and United Arab Emirates
- Wynyard’s partner channel program is focused on tier one systems integrators to expand its serviceable market and
access to larger government contracts
FINANCIAL PERFORMANCE
For 2014, Wynyard reported total income of $26 million with new records set in software licence revenue growth of 62%.
Fourth quarter and second half sales were also new records.
Recurring revenue remained high at 53% of revenue and government sector sales increased from 24% to 37% of sales which
was in line with Wynyard’s growth strategy.
In 2014, 37% (2013: 27%) of revenue was from the Europe and Middle East (EMEA) region, 55% (2013: 64%) from Asia Pacific
and 8% (2013: 9%) from American operations. This shift in revenue mix to the EMEA region is consistent with Wynyard’s
FY14 expansion plan in Europe and the Middle East. The company has now built the foundations for execution in the
America’s market.
Revenue per employee, at $134,000, was lower than FY13 due to the initial impact of expansion of operations across all
regions to underpin the company’s growth strategy.
Wynyard is continuing to expand both its direct and partner sales channels, with sales through partners increasing from
1% of revenue in 2013 to 10% in 2014. By mid-2015 Wynyard will have established partner programs in all three operating
regions and the company continues to see strong interest in its solutions from global tier one systems integrators.
As a result of the company’s decision to accelerate its global expansion by bringing forward planned investment in sales
and marketing personnel, partner sales channels, and product development, Net Loss for the year increased to $22.2m
(2013 $11.2m¹).
At 31 December 2014, Wynyard’s cash at bank was $23.3 million which, together with receivables, was on plan.
Summary Operating Information
2014
Full Year
ActualUnaudited Pro-Forma
2013
Full Year
ActualUnaudited
Pro-Forma
2014
Full Year
ProspectiveTotal Revenue & Other Income$26.0m$21.7m$27.0mNet Loss After Tax($22.2m)($11.2m)($10.4m)Cash at Bank$23.4m$17.0m$11.2m Revenue per Employee$134,000$162,000$178,000Full Time Equivalent Employees228151152
Revenue by type
2014
Full Year
ActualUnaudited
Pro-Forma
2013
Full Year
Actual
YoY
Change
Pro-Forma
2014
Full Year
ProspectiveSoftware Recurring$13.7m$12.8m+7%$16.3mSoftware Licence$8.1m$5.0m+62%$5.7mProfessional Services$3.3m$3.3m -$5.0mOther$0.9m$0.6m+50%$-Total$26.0m$21.7m+20%$27.0m
“Wynyard can look back on its first full year as a publicly listed company with satisfaction and a high level of
confidence for the future. The problems we help solve are growing in scale, complexity and impact and we have positioned
Wynyard to take advantage of these serious crime and big data analytics trends,” said Richardson.
FY15 OUTLOOK
Wynyard’s successful 2H14 land and expand strategy and focus on larger contracts will continue in FY15. The company is
now well positioned as a leader in a new high growth market where demand is fuelled by increasing serious organised
crime, financial crime, cyber-crime and new generation terrorist threats.
In the year ahead, Wynyard will remain focused on the government, financial services and critical infrastructure
markets. The company will expand its existing operations in New Zealand, Australia, United States, Canada, United
Kingdom and the Middle East. There will also be continued investment in Wynyard’s partner program with systems
integrators.
Wynyard’s next generation big data platform, being developed with a Silicon Valley partner, is on schedule and due for
release mid-2015. The platform will deliver market leading scalability and performance and the foundation for Wynyard to
continue to bring new crime-fighting solutions to market faster and more cost effectively than its competitors.
Wynyard has a strong sales pipeline across all regions. The continued focus on larger corporate and government contracts
however, introduces contract execution and revenue recognition timing risk.
Wynyard will therefore provide an update on full year 2015 revenue guidance after the end of the first quarter.
Ends
About Wynyard Group
Wynyard Group is a market leader in risk management and crime fighting software used in investigations and intelligence
operations by government agencies and financial organisations. Wynyard solutions help solve and prevent crime, defend
against advanced persistent cyber threats and counter terrorism. Wynyard’s powerful software platform combines big data,
advanced crime analytics and tradecraft to identify persons of interest, stop offenders and protect victims.
Wynyard has offices in the United States, United Kingdom, Canada, United Arab Emirates, Australia and New Zealand. For
more information visit www.wynyardgroup.com
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[1] Based on the twelve month trading period 1 January to 31 December 2013 consistent with the Wynyard Group investment
statement and prospectus dated 6 June 2013, the Directors believe that it is appropriate to compare to the full twelve
month trading results to 31 December 2013.