Half Year Results

Significant strategic progress alongside continued customer acquisition

Windward (LON: WNWD), a leader in maritime predictive intelligence, is pleased to announce its financial results for the six months ended 30 June 2022.

Financial Highlights

• Annual Contract Value (ACV1), a key indicator of future revenue growth, grew 23% to $22.5m (HY 21: $18.4m), driven by new customer wins and upsells to existing customers
• Revenue up 34% to $10.9m (HY 21: $8.1m)
• Gross margin at 72.4% (HY 21: 72.5%) reflecting investments in data required to support the Company’s offering
• Adjusted EBITDA2 loss of $5.4m (HY 21: ($3.4m)
• Cash and cash equivalents of $27.8m at 30 June 2022 ($8.8m used for operations, $4.5m payments related to the 2021 IPO)

Operational Highlights

• Consistent execution of growth strategy in line with plan
• Expanded customer base to 104 (HY 21: 62), including strong growth in commercial customers (up 92%) and ROW Government customers (up 47%)
• Major launch of Ocean Freight Visibility solution to address supply chain challenges, with 12 new customers signed up to date and further customer wins expected in H2
• Launch of API Insights Lab, enabling the full integration of Windward’s Maritime AI platform directly into customers internal systems

Current Trading and Outlook

• Post-period new meaningful customer updates:
  • Award of $6m three-year contract with an EMEA government customer, which will contribute a further $2m to FY22 ACV
  • Upsell of $530k ACV with an existing US Federal customer, reflecting a 70% contract growth and extending the contract period for up to five years
• Positive trading has continued into H2, building on the momentum of H1 2022
• Demand for sophisticated, data-driven analysis and solutions across the maritime ecosystem stronger than ever
• Anticipated acceleration in new customer acquisition supported by Company’s product enhancements and expanded sales and marketing functions
• Post Covid travel is increasing to support existing and potential new customers and Windward is experiencing higher costs in areas including travel and accommodation. As a result, whilst the Company FY22 expectations for revenues are unchanged, it now expects the EBITDA loss for FY22 to be slightly higher than market expectations
• Focus on driving ACV growth and careful control of costs continues to give Windward a clear roadmap to positive EBITDA in FY2024

(1) ACV, as of a given date, is the total of the value of each contract divided by the total number of years of the contract.

(2) EBITDA is earnings before interest, tax, depreciation and amortisation

(3) All references to $ or USD are in respect of United States Dollars

Ami Daniel, CEO and Co-Founder of Windward said:

“We are delighted with the significant strategic progress we have made in our first six months as a public company. We presented an ambitious growth strategy to the market in December 2021, at the time of our IPO and are executing according to this plan. We have launched key products which have considerably expanded our addressable market, strengthened our infrastructure and our ability to scale, increased our product differentiation and enhanced our sales and marketing velocity and quality.

The supply chain crisis and the war in Ukraine have cemented the need for a greater level of insight in the maritime space, and we have responded proactively to this need through the launch of several new solutions, including the ground-breaking launch of our Ocean Freight Visibility solution.

The outlook for Windward remains positive. Early H2 trading has continued the momentum seen in H1. We continue to focus on driving ACV growth & market share. Whilst we are not immune to broader market cost increases in areas such as travel and accommodation, we continue to carefully control operating costs. ״