Covid has hit contract values, says Osirium

Impact of the pandemic has been seen in the time it takes customers to make decisions and the money they are prepared to spend

Cyber security player Osirium Technologies has provided an insight into the impact of current market conditions, with coronavirus continuing to cause problems.

The firm released a trading update on the progress it has made so far in its fiscal year, which ends on 31 December, with it gaining customers but dealing with the caution that the pandemic has caused in users.

On the plus side, the business has increased its customers by 70% in the second half of the year so far, compared with the same period in 2020. Some of those new contacts have come as a result of growing interest in privileged security products and the firm’s efforts to increase its reach into new markets.

That privileged security suite includes access management, automated IT operations and endpoint management, to target a market that the Osirium board believes is valued at about $25bn by 2025.

The firm has also seen its own channel partner network help it increase opportunities, both here and abroad, by generating more leads to be followed.

In an update earlier this month on the progress of its efforts to work with other resellers, Osirium said it now has more than 30 active partners across the UK and internationally, with further interest being sparked in North America and South Asia. Those partners were able to bring in fresh customers in Ireland, the Netherlands and Singapore.

But on the down side, although it was keeping with 97% retention rates and gaining customers, average initial contract values had been lower and decision times longer because of ongoing caution and disruption caused by the pandemic. The board warned investors that bookings and revenues would either come in the same as last year or slightly lower.

There are signs that customer decision-making will return to normal in the new year and the business will continue with its “land and expand” strategy to achieve further growth in 2022.

“As a reflection of the demand for our services, we have continued to see growing customer numbers as we progress through the second half, along with sustained customer retention of >95% by value,” said David Guyatt, CEO of Osirium.

“While lower contract values have impacted our bookings and revenue, we believe our expanded market reach and penetration provides a good opportunity from which to execute our ‘land and expand’ strategy as the market continues to gain momentum and evolve. We will continue to review the group’s strategy for delivering long-term shareholder value.”

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