Ekinops Q3 2022: +36% growth +28% for the first nine months of the year Revenue guidance raised

Rhea-AI Summary

Ekinops reported a strong performance for Q3 2022, with consolidated revenue of €32.8 million, a remarkable increase of +36% compared to Q3 2021. For the first nine months, total revenue reached €96.1 million, up +28%. The company attributes its growth to diverse business lines and significant sales in North America, which saw a 62% revenue increase. Ekinops also raised its organic growth guidance to over +20% for the fiscal year, while maintaining gross margin and EBITDA targets. The company is actively considering acquisition opportunities.

Positive

• Q3 2022 revenue increased by +36% year-on-year, totaling €32.8 million.
• Nine-month revenue reached €96.1 million, reflecting a +28% increase.
• Strong growth in North America, with a 62% rise in revenue.
• All business lines reported significant growth, especially Optical Transport and Software Services.
• Organic revenue guidance raised to over +20% for fiscal year.

Negative

• None.

PARIS, Oct. 11, 2022 /PRNewswire/ -- EKINOPS (EURONEXT PARIS: FR0011466069), a leading supplier of telecommunication solutions for telecom operators and enterprises, has published its revenue for the third quarter of 2022 (July 1 to September 30, 2022).

 

€m - IFRS  Non-audited data	2021	2022	Change	Change at constant scope and exchange rates
Q1 revenue	23.2	27.8	+20 %	+16 %
Q2 revenue	27.6	35.5	+29 %	+24 %
Q3 revenue	24.1	32.8	+36 %	+29 %
9-month revenue	74.9	96.1	+28 %	+23 %

SixSq has been consolidated since November 1, 2021.

Acceleration of growth in Q3 2022: +36%

Ekinops reported Q3 2022 consolidated revenue of €32.8 million, up by a robust +36% versus Q3 2021.
At constant scope and exchange rates, revenue was up +29%, reflecting further acceleration and significant progress on the annual guidance of +15%, which was already increased in July.

For the first nine months of 2022, the Group's consolidated revenue totaled €96.1m versus €74.9m a year earlier, representing an increase of +28% (+23% at constant scope and exchange rates).

Substantial growth for all business lines

All the Group's business lines posted brisk growth. In particular, sales for Access solutions reported accelerated growth (notably in France), up +26% over the nine-month period versus +21% at the end of the first half of 2022.

As in 2021, the first nine months of 2022 were characterized by the excellent momentum of Optical transport, which posted growth of +32% versus a year earlier (+31% in H1 2022) thanks to the success of 200 Gb/s and 400 Gb/s WDM systems.

Driven by the success of SDN (Software Defined Networks) solutions, network functions' virtualization and Services, revenue generated by sales of Software and Services increased by +32% year-on-year, representing 14% of Group's revenue over nine months.

Buoyant growth of +62% in North America and +39% in France

The first nine months were marked by strong growth in international business (+23%), with an increase in all regions, particularly North America and Asia-Pacific. As of 30 September 2022, international business accounted for 64% of total revenue.

In North America, activity continued to record robust growth, with business volumes totaling €21.1 million, up +62% versus the previous year (+42% in US dollar). This growth benefited from strong demand for Optical Transport equipment. With 22% of its business now generated in North America, Ekinops achieved for the first time more than 20% of its revenue in that region.

After two years of business impacted by the pandemic, Asia-Pacific returns, quarter after quarter, to a dynamic growth trajectory at +36% for the first nine months. Asia-Pacific accounted for 6% of Ekinops' total revenue as of 30 September 2022.

EMEA (Europe, excluding France, the Middle-East and Africa), which represented 36% of business over the first nine months, generated revenue of €34.6 million, up +6% relative to the same prior-year period, in line with H1 2022 (+6%).

After virtually stable revenue in its domestic market in 2021 and Q1 2022, Ekinops restored sharp growth in France. Boosted by robust sales momentum in Access solutions, Q3 2022 growth amounted to +59% in France, an increase of +39% over the first nine months. Over the period, Ekinops recorded 36% of its sales in France.

Annual organic revenue guidance increased to more than +20%

H1 2022 was very dynamic for the Group and Q3 2022 reflects the continued acceleration in growth, further illustrating Ekinops' ability to outperform its competitors and capture market share in an environment penalized by the components crisis.

In view of its excellent Q3 2022 performance, Ekinops further raises its growth guidance and confirms its gross margin and EBITDA targets for the 2022 fiscal year:

• organic growth now expected to be more than +20%, versus the increase to +15% at end-July and more than 12% initially targeted;
• gross margin of between 52% and 56%;
• EBITDA margin between 14% and 18%.

In addition, Ekinops continues to actively pursue external growth and explore all acquisition opportunities that would create value for the company.

All press releases are published after Euronext Paris markets close.

EKINOPS Contact

Didier Brédy,  Chairman and CEO
contact@ekinops.com

Investors

Mathieu Omnes, Investor relation
Tel.: +33 (0)1 53 67 36 92
momnes@actus.fr

Press

Amaury Dugast, Press relation
Tel.: +33 (0)1 53 67 36 74
adugast@actus.fr

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SOURCE Ekinops France SA

FAQ

What was Ekinops' revenue for Q3 2022?

Ekinops reported a revenue of €32.8 million for Q3 2022.

How much did Ekinops’ revenue increase in Q3 2022?

Ekinops' revenue increased by +36% year-on-year in Q3 2022.

What are Ekinops’ nine-month revenue figures for 2022?

Ekinops' nine-month revenue for 2022 totaled €96.1 million, a +28% increase.

What is Ekinops’ updated growth forecast for the fiscal year?

Ekinops raised its organic revenue growth guidance to over +20% for the fiscal year.

How did Ekinops perform in North America in 2022?

Ekinops experienced a 62% revenue growth in North America for the first nine months of 2022.