In This Article:
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Revenue: $24.6 million, representing a 10% growth over 2023.
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EBITDA: $2.5 million, up from $1.8 million in 2023.
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ARR (Annual Recurring Revenue): Grew by 16%, with an exit rate of $19.5 million.
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Gross Margin: Remained above 90%.
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Customer Renewal Rates: High at 97%.
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Net Cash: Modest increase, with cash in the bank at $5.3 million.
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Net Assets: Increased to $18.6 million in 2024.
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Geographic Expansion: Significant growth in Latin America and the Middle East.
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Product Portfolio: Expanded from one to four products, including the introduction of CORE.
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Significant Deals: Seven deals over $1 million, including notable contracts in Brazil.
Release Date: April 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Corero Network Security PLC (DDOSF) reported a 10% revenue growth in 2024, reaching $24.6 million.
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The company achieved a 16% growth in annual recurring revenue (ARR), with an exit rate of $19.5 million.
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Gross margin remained above 90%, reflecting the software-led nature of their solutions.
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Customer renewal rates were high at 97%, indicating strong customer satisfaction.
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Corero expanded its product portfolio beyond DDoS protection, introducing new products like CORE, which is expected to drive future growth.
Negative Points
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R&D expenses increased significantly from $1.8 million to $3.2 million, raising questions about future spending levels.
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Despite the growth, the company remains heavily reliant on the US market, with limited penetration in other regions.
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The company faces strong competition from established players like NETSCOUT, Radware, and Cloudflare.
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There is a lack of detailed reporting on net dollar retention, which could provide more insights into customer growth.
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The company's focus on expanding partnerships may risk spreading resources too thin, potentially impacting execution.
Q & A Highlights
Q: Do you expect to generate more from the Juniper partnership following its expansion? Some investors were expecting more contract momentum. Will this change with the new agreement? A: Yes, we expect more from the expanded Juniper partnership. Previously, our relationship was limited to Juniper routers, but now Juniper can sell our entire portfolio in multi-router environments. This expansion should lead to improved sales and execution, growing our relationship from the current base. - Carl Herberger, CEO
Q: R&D spend increased from $1.8 million to $3.2 million. Is this the new normal, or a one-off? Where were the additional funds spent? A: The increase was primarily for enhancements to the SmartWall ONE solution, particularly the 400 gig platform. We expect SmartWall ONE development to return to base levels, but CORE platform development will continue, as it offers significant revenue opportunities. - Chris Goulden, CFO