Full Year 2025 Corero Network Security PLC Earnings Call Transcript
Key Points
- Corero Network Security PLC (DDOSF) reported a 23% growth in annual recurring revenue (ARR) for 2025, indicating strong customer retention and recurring revenue growth.
- The company has successfully expanded its global footprint, particularly in key growth regions such as LatAm, APAC, and the Middle East, enhancing its market reach.
- Corero's transition to a subscription-led model has improved revenue visibility and strengthened customer relationships, providing a more predictable foundation for growth.
- The company maintains a high gross margin of 90%, which supports profitability as revenue grows.
- Corero has achieved a 98% customer renewal rate, reflecting strong customer satisfaction and dependency on its platform.
- The shift from upfront revenue recognition to a subscription model has resulted in lower immediate revenue recognition, impacting short-term financial performance.
- Corero experienced a net loss of approximately $700,000 in 2025, highlighting challenges in achieving profitability.
- The company faced global uncertainty, particularly around US tariffs, which delayed customer decision-making and impacted order intake in early 2025.
- There is a significant reliance on the Americas for revenue, with 70% of sales coming from this region, indicating potential vulnerability to regional market fluctuations.
- The transition to a subscription model has led to cash burn, with cash reserves decreasing to $4 million by the end of 2025.
Good afternoon ladies and gentlemen and welcome to the Corero Network Security PLC full year results 2025 investor presentation.(Operator Instructions) Before we begin, we'd like to submit the following poll, and I'm sure the company will be most grateful for your participation.
And I'd like to hand over to the management team. Carl, good afternoon.
Thank you very much, Mark. Good afternoon and for the American attendees. Good morning and thank you for joining us today. I'm joined, today with my colleagues Chris Goulden and with Michelle McBain, recent hire for us in our head of channels, so she'd be here if you need to ask some questions along the way. I'll start on how the business has evolved over the last year and what we're seeing in the market and how that's shaping our direction. Chris will then take you through the financials in detail. We look forward to the questions at the end.
So, let's first talk about Corero. Corero protects organizations
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