WANdisco in Sheffield signs largest ever contract with major global communications company
Sheffield-based WANdisco said it expects to secure record bookings for this financial year, which are significantly ahead of current market expectations.
In a statement WANdisco said: “As a commit-to-consume contract, revenue will be recognised over time and has the potential to grow further as its data requirements grow.
"This is the fourth consecutive contract with the customer, following the $11.6m order announced earlier this year. The cumulative contracts from this customer now total $39.3m during 2022, demonstrating the opportunity for WANdisco to land and expand deals, using its commit-to-consume model.”
The statement added: “The customer had previously used WANdisco’s solutions to migrate smart meter data from an on-premise Hadoop cluster to multiple cloud providers. This follow-on deal comes as the customer has seen a proliferation of smart meter data and has new Internet of Things (IoT) data needs in the automotive sector.
“This commit-to-consume contract structure not only drives greater adoption of WANdisco’s solutions in future periods but also enables significant expansion opportunities. This drives further revenue growth for WANdisco as customers see their requirements scale, and demands to migrate data increase over time.”
David Richards, CEO and Co-founder of WANdisco said: “Throughout 2022, we have outlined how the enhanced trust and confidence both new and existing customers have in our business, combined with the proliferation of data through IoT and 5G, has unlocked a range of use cases and significant commercial commitments.
“This $25m order, our largest ever, is the fourth successive agreement we have signed with this customer, showcasing the significant expansion opportunities enabled by the uniqueness of our technology. We remain excited about the opportunity in IoT, where we are seeing increasingly larger opportunities across multiple sectors, particularly in telecommunications and automotive.
“Following this latest contract and our robust pipeline, we expect bookings for FY2022 to be significantly ahead of current market expectations.”
Alasdair Young, an analyst at Panmure Gordon, said: “WANdisco has secured its largest ever deal - a $25m contract with a major telecommunications customer. This is the fourth deal with the same customer in the last six months.
"The business has now exceeded our FY22E bookings estimate leading to substantially improved revenue visibility. As detailed at the recent CMD, WANdisco is benefitting from an improved product/market fit, and the proliferation of IoT/5G is giving rise to ‘increasingly large opportunities across multiple sectors.”
Speaking in June, Mr Richards said the firm was “extremely excited about the significant market opportunities that lay ahead of us for the rest of this year”.
He added: “In 2022, the business is focused on continuing the acceleration of business started in the second half of 2021.”
Earlier this year, WANdisco said it was moving towards a commit to consume contract structure.
WANdisco said the commit to consume provides it with a stream of committed revenues that have the potential to increase as customers' data needs expand, increasing revenue visibility.