- Osirium Technologies shares surged 35.6% on the Q1 trading update.
- Investors cheered the tech company’s multiple contracts won in Q1.
- The company is likely to keep performing well for the rest of the year.
The Osirium Technologies PLC (LON: OSI) share price surged by 35.6% after the cloud-based IT automation software, and cybersecurity firm released a trading update about its Q1 2022 performance.
Also read: The Best Tech Stocks To Buy Right Now.
The company said that contract values had risen to pre-pandemic levels, with five of the contracts signed during Q1 being of more significant value than any individual contract signed in the 2021 financial year.
Osirium also revealed that most of the contracts signed this year have been signed on a three-year basis, which provides greater visibility on the company’s future revenues. The deals also have more significant potential for the extension of licenses and the incorporation of other services.
Most of the new customers secured by the firm are from the education sector and various NHS stakeholders, which have been the key growth driver during the past quarter.
Investors cheered the news, as evidenced by Osirium’s share price rally today. Osirium shares formed a bottoming pattern on the daily chart from late February to early March and have been trending high ever since.
David Guyatt, Osirium Technologies’ CEO, said: “In 2022, we are witnessing the confluence of several favourable developments which we expect to impact the Group positively over the short and long-term. We've seen increasing demand for our PAM IT security capabilities along with a return to pre-pandemic contract values. In addition, our complimentary automation and endpoint security solutions are becoming increasingly significant, both as a driver of new customer acquisition as well as an additional element to existing PAM contracts.”
“The investment we have made in building out a comprehensive Privileged Access Security Suite, with powerful functionality yet simple, easy deployment, has positioned us extremely well as customers” willingness to invest in IT security grows as we emerge from the pandemic.”
The company also attributed some of its success to its partner network, with its primary partner ITHealth bringing in over £300,000 in new business during Q1 2022. Osirium further revealed that some of the customers acquired last year had decided to expand their contracts with the firm.
Osirium attributed the contract extensions to its multi-solution suite centred around privileged protection, with many customers buying its additional Privileged Process Automation (PPA) and Privileged Endpoint Management (PEM) solutions.
Investors wondering if there could be more gains in the OSI share price in future should rest easy since the stock has a long way to go, given that it once traded at 202p in May 2016. So I would wait for a pullback before jumping in.
*This is not investment advice. Always do your due diligence before making investment decisions.
Osirium Technologies share price.
Osirium Technologies’ share price surged 35.58% to trade at 8.65p, rising from Monday’s closing price of 6.38p.