Solid third quarter 2023 at €1,228 m
up 13% at constant currency and up 9% reported, led by
the strong performance realised in EMEA
Full year outlook confirmed
SUSTAINED GROWTH
- Gross Sales up 9% reported and up 13% at constant currency to
€1,228 m
- Continued trend towards demand normalisation
- YTD growth up 16% reported and up 19% at constant currency
- FY-23 outlook confirmed
M&A FOCUS
- Strategic acquisition to reinforce our capabilities in Southern
Europe under the Ignition brand
- A clear focus on innovative and disruptive technologies to
complement our unique value proposition
Regulatory News:
Exclusive Networks (Euronext Paris: EXN), a global leader in
cybersecurity, today announces its Gross Sales and IFRS Revenue for
the third quarter ended September 30, 2023. Management will hold a
conference call at 9:00 am (CET) today, available via webcast
(https://ir.exclusive-networks.com/). A replay will be
available.
Jesper Trolle, Chief Executive Officer, commented:
“Exclusive Networks, as a leader in cybersecurity, is moving
towards its mission of creating a safer world. In the third
quarter, we made solid progress with gross sales growth of 9%
reported, 13% at constant currency, in line with our
expectations.
We delivered double-digit growth in our largest region (EMEA),
despite a challenging macroeconomic environment and low visibility
which has seen sales cycles lengthen and return to normalised
levels since the end of 2022. We have a consistent solid pipeline
with no project cancellation.
After several years of organic growth, our strong balance sheet
and excellent cash generation enable us to make the acquisition of
Ingecom to broaden and deepen our offering and support our
long-term growth strategy.
This strategic acquisition will enable us to expand our
capabilities in innovative and disruptive technologies to
complement and scale our offering of emerging and fast-growing
cybersecurity solutions in our markets.
Our current momentum of double-digit growth year to date,
coupled with a strategic acquisition, underpins our confidence in
meeting our 2023 guidance.”
Q3 2023 FINANCIAL PERFORMANCE HIGHLIGHTS
Net vendors retention rate1 were at 122% on a rolling
12-month basis at Q3-23 (vs 128% in Q3-22) with Net customers
retention rates1 at 121% on a rolling 12-month basis at Q3-23
(vs 129% in Q3-22), supported by the sustained demand for our
vendors’ solutions and the continued engagement of our channel
partners.
Q3 2023 Gross sales
in € million
Q3 2022
Q3 2023
Variation
Reported
Constant Currency*
EMEA
857
973
+14%
+16%
AMERICAS
155
157
+1%
+9%
APAC
115
99
-14%
-5%
GROUP
1,127
1,228
+9%
+13%
* Variation at constant currency is
computed using the third quarter of 2022 rates applied to the third
quarter of 2023 Gross sales. The USD, GBP and PLN evolved as
follows; 1EUR: 1.084 USD; 1EUR: 0.871 GBP, 1EUR: 4.584 PLN
respectively for Q3 2023 and 1EUR: 1.065 USD, 1EUR: 0.847 GBP,
1EUR: 4.670 PLN respectively for Q3 2022.
Gross sales were €1,228 million, an increase of 9% year
over year on a reported basis, 13% at constant currency. Most of
this reported growth (5%) was driven by business with existing
vendors in their current geographies. The remainder of the growth
was mostly due to vendor expansion (3%). Vendor expansion is a
combination of vendors entering into new geographies (2%) and new
vendor relationships (1%). Finally, the contribution of our recent
acquisition Ingecom, supported our growth for 1%.
EMEA (79% of total quarterly Gross sales): Gross sales
rose to €973 million, an increase of €116 million or +14% reported.
The region achieved another quarter of strong growth and benefitted
from a solid momentum resulting from the quality of vendor
portfolio across all countries.
AMERICAS (13% of total quarterly Gross sales): Gross
sales were €157 million, up +1% reported or +9% at constant
currency. The region faced a high basis of comparison in Q3-22 when
the region recorded a sharp growth. In a context of demand
normalisation and dollar fluctuation in Q3, the region managed to
maintain a positive trend during the quarter, supported by the
progressive ramp up of new vendors.
APAC (8% of total quarterly Gross sales): Gross sales
retreated by 14% reported at €99 million. The trend is improving
quarter on quarter and the initiatives implemented locally allowed
the region to progressively improve the trend compared to the
previous quarter.
Q3 2023 IFRS Revenue
in € million
Q3 2022
Q3 2023
Variation
Reported
Constant Currency*
EMEA
630
760
+21%
+24%
AMERICAS
89
109
+22%
+32%
APAC
89
79
-11%
-3%
GROUP
809
948
+17%
+22%
* Variation at constant currency is
computed using the third quarter of 2022 rates applied to the third
quarter of 2023 revenue.
IFRS Revenue takes into account the recognition of the
sales of support and maintenance on a Net Margin basis as per IFRS
as Exclusive Networks is not the primary obligor for these
solutions. IFRS Revenue reached €948 million, up 17% on a reported
basis, in line with Gross sales evolution.
___________________________________
1 Defined as reported rolling 12 months
Gross sales generated in year N from vendors/customers active in
year N-1 divided by reported rolling 12 months Gross Sales from the
same vendors/customers in year N-1.
KEY EVENTS
Exclusive Networks, completed the acquisition of 70% of Ingecom,
a Spanish value-added distributor, specialized in cybersecurity and
cyber intelligence solutions for emerging and disruptive
technologies to accelerate Ignition Technology expansion in
Southern Europe.
This additional development of Ignition Technology will create
further value for Exclusive Networks by continuing to strengthen
our dual offering both to established and emerging innovative
vendors and help them to transition from challenger to future
segment leader.
On 3rd October 2023, Exclusive Networks announced the
appointment of Andrew Assad as SVP APAC.
Andrew has tremendous experience in driving innovation and
adding value across channels. Over the past 18 years he has
successfully held a number of increasingly senior positions at
Arrows ECS, culminating in his role as Managing Director for
Australia-New Zealand.
2023 OUTLOOK
In an environment still challenged by macroeconomic volatility,
we remain confident in meeting our FY 2023 guidance:
- Gross sales above €5,150 million
- Net margin in the range of €450 million to €465
million
- Adj. EBIT in the range of €172 million to €178 million,
expected to reach the upper end of the range
- Adj. Operating FCF above 80% of Adj. EBITDA
CONFERENCE CALL
Jesper Trolle, Chief Executive Officer and Nathalie Bühnemann,
Chief Financial Officer, will present the Third Quarter 2023
performance during a conference call in English to be held on
November 7th, 2023, 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
- FY 2023 Financial Results: 29th February, 2024.
- Q1 2024 Gross sales and Revenue Release: 30th April,
2024.
- 2024 Annual General Meeting: 6th June, 2024.
APPENDICES
9 months of 2023 Gross Sales
in € million
9 months of 2022
9 months of 2023
Variation
Reported
Constant
Currency*
EMEA
2,385
2,795
+17%
+20%
AMERICAS
355
455
+28%
+31%
APAC
334
310
-7%
-3%
GROUP
3,074
3,560
+16%
+19%
* Variation at constant currency is
computed using the 9 months of 2022 rates applied to the 9 months
of 2023 Gross Sales. The USD, GBP and PLN evolved as follows; 1EUR:
1.084 USD; 1EUR: 0.871 GBP, 1EUR: 4.584 PLN respectively for the 9
months of 2023 and 1EUR: 1.065 USD, 1EUR: 0.847 GBP, 1EUR: 4.670
PLN respectively for the 9 months of 2022.
9 months of 2023 IFRS Revenue
in € million
9 months of 2022
9 months of 2023
Variation
Reported
Constant
Currency*
EMEA
1,793
2,153
+20%
+23%
AMERICAS
232
330
+42%
+45%
APAC
257
242
-6%
-2%
GROUP
2,282
2,724
+19%
+22%
** Variation at constant currency is
computed using 9 months of 2022 rates applied to 9 months of 2023
revenue.
Gross sales to revenue reconciliation
in € million
Q3-22
9 months of 2022
Q3-23
9 months of 2023
Gross sales
1,127
3,074
1,228
3,560
Agent vs principal
(mainly vendors’ support) – IFRS 15
(318)
(792)
(280)
(835)
Revenue
809
2,282
948
2,724
About Exclusive Networks
Exclusive Networks (EXN) is a global cybersecurity specialist
that provides partners and end-customers with a wide range of
services and product portfolios via proven routes to market. With
offices in over 45 countries and the ability to serve customers in
over 170 countries, we combine a local perspective with the scale
and delivery of a single global organisation.
Our best-in-class vendor portfolio is carefully curated with all
leading industry players. Our services range from managed security
to specialist technical accreditation and training and capitalize
on rapidly evolving technologies and changing business models. For
more information visit www.exclusive-networks.com.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106470087/en/
EXCLUSIVE NETWORKS Investors
& Analysts Hacene Boumendjel Head of Investor
Relations ir@exclusive-networks.com
Media FTI Consulting
Emily Oliver / Tom Blundell +33 (0)1 47 03 68 65
exclusivenetworks@fticonsulting.com
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