Nixu Corporation: CEO’s review for Q1 2021

Nixu Corporation’s unaudited revenue for January–March 2021 decreased by 6 % from the corresponding period of the previous year and amounted to EUR 13.1 million (Q1/2020: EUR 14.0 million). EBITDA increased to EUR 367 thousand (Q1/2020: EUR –365 thousand). Adjusted EBITDA was EUR 437 thousand (Q1/2020: EUR 8 thousand).

Financial guidance for 2021

Nixu estimates its revenue to grow organically and its EBITDA to increase from 2020.
Simultaneously investments to growth are increased.

An investor conference call on April 15, 2021, at 12.00 pm EEST

Nixu will organize an investor call on the Q1 results. Petri Kairinen, Nixu CEO will be hosting the call and answer investor questions. Registration for the event by email: nixu.communications@nixu.com. Further information will be sent to the participants.

CEO Petri Kairinen:

The Covid-19 pandemic, that hit the world with full force a year ago and quickly affected the society on all levels, continued to frame the first quarter of 2021. The comparison period in 2020 was during the time of pre-pandemic with normal business environment, while Nixu was progressing fully in line with our growth strategy. Following the cost saving measures in 2020, we started the Q1 from a much more defensive position and with fewer employees. This had a large impact on our revenue even with positive sales atmosphere. On the positive side, we improved our EBITDA from the last year even while simultaneously increasing investments to growth and starting the transition to our new operating model.

Even if we start the year more slowly than last year, we are fully committed in meeting our goal of growing organically while improving our EBITDA during this year. It is clear that we are not satisfied with the level we were during the Q1. However, with the recruitments taking place and growth initiatives started, we are already showing promise and we expect the pace to increase towards summer to gain full speed during H2.

In February 2021, we utilized the perfect storm, created by the pandemic, that induced the shift to remote work, and took the crucial step in making Nixu a more unified European cybersecurity player better equipped to achieve a breakthrough in markets outside Finland. Our new, international operating model aims at increasing our client understanding, intimacy and focus, strengthen the development of expertise, and improve profitability through more efficient service staffing and delivery.

Towards the end Q1, we embarked again on our growth journey. We formed a dedicated start-up business unit to focus on the cybersecurity of IoT devices. However, even if it is not a new area to Nixu, now we are pooling our competences and international reach in one focused unit.

Additionally, the Danish cybersecurity company C-cure’s experts joined Nixu to further strengthen our presence in the fragmented Danish cybersecurity market.

The prolonged pandemic has forced the world to become digital while companies and organizations are increasingly relying on digital solutions. When looking across our industry it seems that most of this growth in digital has so far gone to companies implementing new solutions. While the solutions are increasing, so is the debt of cybersecurity spenditure, which has not kept pace with digital spenditure. We see the future as bright in terms of demand for cybersecurity services as threats keep evolving.

With the measures we have taken - cost savings implemented in 2020, our streamlined operations and new more client centric operating model - accompanied with the promising market outlook for cybersecurity services, I am confident that we are well positioned to continue serving our clients successfully across Northern Europe.

Nixu Corporation

Further information:
CEO Petri Kairinen, Nixu Corporation
Telephone: +358 40 832 1832, e-mail: petri.kairinen@nixu.com

Distribution:
Nasdaq Helsinki
Main media
www.nixu.com

Nixu in Brief:
Nixu is a cybersecurity services company on a mission to keep the digital society running. Our passion is to help organizations embrace digitalization securely. Partnering with our clients we provide practical solutions for ensuring business continuity, an easy access to digital services and data protection. We aim to provide the best workplace to our team of about 400 cybersecurity professionals with a hands-on attitude. With Nordic roots we serve enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki stock exchange.
www.nixu.com