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Corero Network Security: 16% ARR Growth Drives Momentum into 2025

AInvestTuesday, Jan 7, 2025 7:11 am ET
2min read


Corero Network Security (AIM: CNS) (OTCQX: DDOSF), a leading provider of DDoS protection solutions, has announced a strong trading update for the year ended December 31, 2024. The company delivered impressive financial results and advanced its transition to a SaaS-based revenue model, positioning it for sustained growth in 2025 and beyond.

Key financial and operational highlights for FY 2024 include:

* Annualized Recurring Revenue (ARR) grew 16% to $19.5 million, driven by strong demand for subscription-based DDoS Protection as-a-Service (DDPaaS)
* Order intake increased 13% to $28.2 million, reflecting growing customer adoption
* Revenue rose 10% to $24.6 million, up from $22.3 million in 2023
* EBITDA expected to grow to $2.1–$2.5 million, compared to $1.8 million in FY 2023
* Over 70% increase in new customer acquisition
* 97% customer retention rate, with a robust pipeline heading into 2025

Corero's strong performance in 2024 was driven by several factors, including:

1. Transition to a SaaS-based revenue model: Corero's shift towards subscription-based and DDPaaS products has accelerated its ARR growth, providing a more stable and predictable revenue stream.
2. Strong demand for DDoS protection: The increasing frequency and sophistication of DDoS attacks have led to a higher demand for protection services, with Corero's SmartWall DDoS protection solutions well-positioned to meet this demand.
3. Enhanced go-to-market strategy: Corero has aligned its sales and marketing activities with its accelerated go-to-market strategy, generating strong order and ARR growth and a healthier pipeline.
4. Innovation and product development: Corero's launch of the new CORE platform demonstrates its commitment to innovation and maintaining its leadership in DDoS protection, expected to drive further growth.

Corero ended FY 2024 in a strong financial position, with $5.3 million in cash and no debt. An additional $4.8 million in new customer orders invoiced in Q4 2024 is expected to be collected in early Q1 2025, providing further confidence for the year ahead.

Carl Herberger, CEO of Corero, commented: "2024 has been a year of significant change for Corero. We've delivered record-breaking ARR and robust order growth, while enhancing our go-to-market and technology capabilities during my first twelve months as CEO. We continue to accelerate our transition to a SaaS-based model, which has not only strengthened our financial foundation but is also driving consistent and impressive results."

In Q4, Corero launched its new CORE platform, underscoring its commitment to innovation and reinforcing its leadership in DDoS protection. With an exceptional customer retention rate and the healthiest pipeline we've seen to date, we're confident Corero will deliver continued growth in 2025 and beyond.



In conclusion, Corero Network Security's 16% ARR growth in 2024 is a testament to the company's strong performance and commitment to innovation. With a solid financial position and a robust pipeline, Corero is well-positioned to continue its growth trajectory in 2025 and beyond.
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