Record quarterly Gross Sales, up 43% vs.
Q2-21 at €1,027 million
- Continued growth driven by market positioning and structural
market drivers
- External factors contributed to the growth this
quarter
- Consistent growth in all geographies
- Bookings growth outstripping Gross Sales growth
Regulatory News:
Exclusive Networks (Euronext Paris: EXN) today announces its
Gross Sales and IFRS Revenue for the second quarter of 2022.
Jesper Trolle, Chief Executive Officer, said: “I am
delighted that Exclusive Networks achieved Gross Sales above 1
billion this quarter. This record performance reflects our unique
positioning in the cybersecurity ecosystem and the strong
structural growth drivers in the market. External factors such as a
strengthening of the US dollar and better than anticipated delivery
rates from our core suppliers also contributed to the growth. I
want to thank our teams around the world for their hard work and
dedication to our mission.
The superior execution of our value-added model and services as
well as the deep and longstanding relationships we have been
building over the past decades with the leading and most promising
cybersecurity vendors in the world bear fruits as we consistently
outperform the high growth cyber market. Growth has been fueled
this quarter by all of the main core cybersecurity segments, as
well as by our newest segments such as Cloud Security and
DevSecOps, both delivering sharp growth and validating our strategy
to accelerate opportunities in these segments through the
acquisition of Nuaware. These segments have experienced
triple-digit growth rates and have an outstanding growth
potential.
Spending on cybersecurity remains an increasing priority for
companies and public institutions of all sizes. We see this in
response to greater awareness of cyber threats, sophistication of
surface attacks and geopolitical tensions. We are confident that
our prominent position in the cybersecurity ecosystem and robust
forward indicators, with bookings growth ahead of gross sales
growth bode well for the future. We are the Global specialist
leader in the cybersecurity market and ideally positioned to
benefit from the market’s continued dynamism and growth in coming
quarters.”
Q2 2022 FINANCIAL PERFORMANCE HIGHLIGHTS
Q2 2022 Gross Sales
in € million
Q2 2021*
Q2 2022*
Variation
Reported
Constant
Currency**
EMEA
557.8
797.8
43.0%
42.7%
APAC
90.0
122.7
36.3%
25.3%
AMERICAS
73.0
106.7
46.1%
30.0%
GROUP
720.8
1,027.1
42.5%
39.3%
*Gross Sales restated after Intercompany elimination, detail in
appendix. ** Variation at constant currency is computed using the
second quarter of 2021 rates applied to the second quarter of 2022
Gross Sales. The USD, GBP and PLN evolved as follows; 1EUR: 1.094
USD; 1EUR: 0.842 GBP, 1EUR: 4.633PLN respectively for Q2 2022 and
1EUR: 1.206 USD, 1EUR: 0.868 GBP, 1EUR: 4.537 PLN respectively for
Q2 2021.
Q2 2022 IFRS Revenue*
in € million
Q2 2021
Q2 2022
Variation
Reported
Constant
Currency**
EMEA
436.2
595.6
36.5%
36.7%
APAC
64.8
92.5
42.8%
31.3%
AMERICAS
46.6
73.6
57.7%
39.1%
GROUP
547.7
761.7
39.1%
36.3%
* As per IFRS 15 and the revenue recognition definitions for
Support & Maintenance sales, Exclusive Networks is considered
as an agent, so the associated Net Margin is recognized as Revenue.
For the sales of licenses, hardware and other services, Exclusive
Networks is considered as a principal so Sales and cost of goods
sold are recognized separately reflecting buy and sale. **
Variation at constant currency is computed using the second quarter
of 2021 rates applied to the second quarter of 2022 revenue.
Gross Sales were €1,027.1 million, an increase of 42.5% year
over year on a reported basis, 39.3% at constant currency.
The 42.5% Gross Sales growth in the second quarter of 2022 was
largely attributable (77%) to growth from existing vendors. We also
benefited from expanding with our vendors into new global regions
as well as new vendors relationships (11%). The acquisitions of
Ignition Technology and Networks Unlimited also supported our
growth (12%).
Vendors renewal rates1 for the second quarter of 2022 were up
135% (vs 110% in the second quarter of 2021) with customers renewal
rates1 at 133% (vs 106% in the second quarter of 2021), supported
by increasing demand for our vendors’ solutions and the continued
engagement of our channel partners.
The business performance in the second quarter of 2022 further
demonstrates that the unique positioning of the company delivers
ongoing strong business momentum with new vendors and geographical
expansion, consistently outperforming its fast growing market.
OPERATIONS BY REGION
EMEA (78% of total quarterly gross sales):
Q2-22 Gross Sales were €797.8 million, an increase of €240
million or +43.0% year over year. EMEA, which remains the core
region of the Group, continued its momentum from the previous
quarter, with growth in all countries. There was particularly
strong growth in the UK and in Germany where we saw an acceleration
of the developments in the Enterprise market and an increasing
share of large deals, through System Integrator partners.
Order intake continued its strong momentum and local teams
continued to work closely with vendors to support them in
navigating recent supply chain issues and ensure they could deliver
the necessary cybersecurity solutions.
The business expansion continued with the addition of Tenable,
the world’s first Cyber Exposure platform, to the pan EMEA region
portfolio.
The pipeline in large enterprise opportunities across all EMEA
countries provides a solid foundation for the future.
APAC (12% of total quarterly gross sales):
Gross Sales were €122.7 million, representing growth of +36.3%
year over year. APAC returned in the second quarter to a positive
growth trend supported by the contribution of an increased number
of large deals in Singapore and in the Philippines. Booking
momentum remains positive.
AMERICAS (10% of total quarterly gross sales):
Gross Sales were €106.7 million, a significant +46.1% increase
year over year. The robust performance in the region was fueled by
the high demand for cybersecurity solutions of key vendors, the
onboarding of more Juniper partners and the sustained enterprise
momentum, notably with the signature of large deals. The backlog
continues to grow as order intake remains strong.
Half Year 2022 Gross Sales
in € million
H1 2021*
H1 2022
Variation
Reported
Constant
Currency**
EMEA
1,130.8
1,528.0
35.1%
34.6%
APAC
193.4
219.3
13.4%
6.2%
AMERICAS
130.9
200.1
52.9%
39.0%
GROUP
1,455.1
1,947.4
33.8%
31.2%
*Gross Sales restated after Intercompany elimination, detail in
appendix. ** Variation at constant currency is computed using the
first half of 2021 rates applied to the first half of 2022 Gross
Sales. The USD, GBP and PLN evolved as follows; 1EUR: 1.094 USD;
1EUR: 0.842 GBP, 1EUR: 4.633PLN respectively for H1 2022 and 1EUR:
1.206 USD, 1EUR: 0.868 GBP, 1EUR: 4.537 PLN respectively for H1
2021.
Half Year 2022 IFRS Revenue*
in € million
H1 2021
H1 2022
Variation
Reported
Constant
Currency**
EMEA
861.0
1,162.3
35.0%
34.9%
APAC
150.3
168.2
11.9%
4.7%
AMERICAS
94.6
143.2
51.4%
37.2%
GROUP
1,105.9
1,473.7
33.3%
31.0%
* As per IFRS 15 and the revenue recognition definitions, for
Support & Maintenance sales, Exclusive Networks is considered
as an agent, so the associated Net Margin is recognized as Revenue.
For the sales of licenses, hardware and other services, Exclusive
Networks is considered as a principal so Sales and cost of goods
sold are recognized separately reflecting buy and sale. **
Variation at constant currency is computed using half year 2021
rates applied to half year 2022 revenue.
OUTLOOK
On the basis of the information currently available, the Group
maintains its guidance for the full year of 2022.
APPENDIX
Changes in Gross Sales reporting methodology
Up to Q1 2022 Gross Sales publication, Exclusive Networks Gross
Sales KPI was defined as follows:
“Gross Sales represent revenue recognized by the Group on a
gross basis for each revenue stream (i.e. Solutions and
Support/Maintenance) and before intra and inter segment
intercompany eliminations. Net of returns, discount and
rebates”.
Historically, the business model of Exclusive Networks was such
that each entity within the Group was managing its own buy-and-sell
activities, resulting into intra and inter segment sales
non-significant at Group level (47m€ in 2021 i.e. 1.4% of gross
sales, 25m€ in 2020) and not distorting the perception of the
Group's financial performance. However, these intra and inter
segment sales are expected to increase in the future due to (i) the
implementation of a new operating model to support some vendors’
growth within EMEA, with some inventory to be held in one European
country for the whole EMEA area; (ii) the growth pattern of the
Company.
Considering the above-described evolutions, the Group decided to
exclude the intra and inter segment sales from its Gross Sales KPI
in FY2022 to improve the relevance and reliability of its Gross
Sales indicator to the market. Effective Q2 2022 Gross Sales
publication, the Gross Sales indicator will be defined as
follows:
“Gross Sales represent revenue from third parties recognized by
the Group on a gross basis for each revenue stream. Net of returns,
discount and rebates. »
For comparability purposes, historical figures have been
restated according to the new definition.
A reconciliation of both metrics for 2021 and 2022 is provided
in the tables below:
Gross Sales Published before intercompany
elimination:
in € million
Q1-21
Q2-21
Q3-21
Q4-21
FY-21
Q1-22
Q2-22
EMEA
585.3
567.9
608.3
817.9
2,579.5
742.3
828.4
APAC
103.5
89.8
103.0
98.0
394.3
96.6
122.7
AMERICAS
57.8
73.0
93.6
122.3
346.7
93.4
106.7
GROUP
746.7
730.7
804.9
1,038.2
3,320.4
932.4
1,057.9
Gross Sales retreated after intercompany elimination:
in € million
Q1-21
Q2-21
Q3-21
Q4-21
FY-21
Q1-22
Q2-22
EMEA
573.0
557.8
597.0
804.4
2,532.3
730.3
797.8
APAC
103.4
90.0
103.1
98.0
394.5
96.6
122.7
AMERICAS
57.8
73.0
93.5
122.3
346.7
93.4
106.7
GROUP
734.2
720.8
793.6
1,024.8
3,273.4
920.3
1,027.1
CONFERENCE CALL
Jesper Trolle, Chief Executive Officer and Pierre
Boccon-Liaudet, Chief Financial Officer, will present the Second
Quarter 2022 performance during a conference call in English to be
held today August 2, 2022, at 9:00 am (CET).
You can follow the conference call live via webcast at the
following link: https://ir.exclusive-networks.com/.
A replay will also be available for a period of one year.
All documents relating to this publication will be placed online
on the Exclusive Networks Investor Relations website at
https://ir.exclusive-networks.com/
Regulated information related to this press release and
presentation is available on https://ir.exclusive-networks.com/
PROVISIONAL CALENDAR
- H1 2022 Financial Results: September 14, 2022
- Q3 Financial update (Gross Sales and Revenue): November
9, 2022
About Exclusive Networks
Exclusive Networks is a leading global specialist in innovative
cybersecurity technologies, providing services to accelerate the
sale of cybersecurity disruptive and digital infrastructure
technologies on a global scale. Exclusive Networks helps
cybersecurity vendors scale their businesses globally, and offering
channel partners (such as value-added resellers, system
integrators, telecom companies and managed service providers)
expertise, disruptive technologies and services to fit the needs of
their corporate customers. Exclusive Networks also works with
several vendors offering solutions in specific sub-segments beyond
cyber.
Exclusive Networks excels by combining global scale with local
execution. With offices in 46 countries and the ability to service
customers across five continents, Exclusive Networks, headquartered
in France, offers a “global scale, local sale” model. This model
enhances performance in local operations by providing both global
and local support. This approach has enabled Exclusive Networks to
(i) develop one of the world's broadest portfolios of cybersecurity
solutions from over 260 leading vendors and (ii) develop a
worldwide customer base, consisting of over 22,000 value added
resellers, system integrators, telecom companies and managed
service providers, indirectly serving more than 110,000
end-customers. Over the period from 2018 to 2021, Exclusive
Networks engaged in business in more than 170 countries.
Exclusive Networks’ approach enables vendors to adopt a simple
and agile go-to-market model in relation to their cybersecurity and
digital infrastructure solutions, while benefitting from Exclusive
Networks’ local expertise and market knowledge in each jurisdiction
where it operates. Exclusive Networks’ scale is equally important
to its customers as their own end-users may be located in multiple
regions of the world. In addition, Exclusive Networks helps its
customers through its expertise in vendor selection as
cybersecurity and digital infrastructure solutions become ever more
complicated and keep evolving in the face of increasing
cybersecurity threats.
DISCLAIMER
This press release may contain forward-looking statements. Such
statements may include projections, estimates, assumptions,
statements regarding plans, objectives, intentions and/or
expectations with respect to future financial results, events,
operations and services and product development, as well as
statements, regarding future performance or events. Forward-looking
statements are generally identified by the words “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “plans”,
“projects”, “may”, “would” “should” or the negatives of these terms
and similar expressions. Although Exclusive Network’s management
currently believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned
that forward-looking statements are subject to various risks and
uncertainties (including, without limitation, risks identified in
Exclusive Networks’ Registration Document available on Exclusive
Networks’ website), because they relate to future events and depend
on future circumstances that may or may not occur and may be
different from those anticipated, many of which are difficult to
predict and generally beyond the control of Exclusive Networks.
Actual results and developments may differ materially from those
expressed in, implied by or projected by forward-looking
statements. Forward-looking statements are not intended to and do
not give any assurances or comfort as to future events or results.
Other than as required by applicable law, Exclusive Networks does
not undertake any obligation to update or revise any
forward-looking statement.
This press release does not contain or constitute an offer of
securities for sale or an invitation or inducement to invest in
securities in France, the United States or any other
jurisdiction.
1 Defined as Gross Sales generated in year N from
vendors/customers active in year N-1 divided by Gross Sales from
the same vendors/customers in year N-1
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version on businesswire.com: https://www.businesswire.com/news/home/20220801005653/en/
Contact Stéphanie Bia SVP,
Marketing, Communication and Investor Relations
Communications_global@exclusive-networks.com Investors & Analysts Hacene BOUMENDJEL
Head of Investor Relations ir@exclusive-networks.com
Media FTI Consulting
Cosme Julien-Madoni / Charlotte Stephen / Tom Blundell +33 (0)1 47
03 68 19 exclusivenetworks@fticonsulting.com
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