WANdisco plc (LON: WAND) continued its recent rally Thursday, opening higher after the company said it has signed an initial agreement worth $12.7m with a global European-based automotive manufacturer.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The deal, a one-off migration rather than a commit-to-consume contract, will see Internet of Things data in the automotive manufacturer's data centre being migrated to the cloud. In addition, once the migration has been completed, the automotive firm is expected to launch a range of IoT-related services.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company expects around 80% of the deal's revenues to be recognised in FY22, with the balance falling into FY23.
WANdisco said in its statement that it was chosen based on its “proven ability to migrate petabyte scale data.”
“With the advent of electronic vehicles, automotive manufacturers are increasingly seeing data as an important revenue opportunity. WANdisco continues to see significant interest in the company's solutions from automotive manufacturers globally and expects further progress in this industry vertical as a core and growing market for WANdisco,” the company added.
The agreement has resulted in WANdisco expecting FY22 revenues to be significantly ahead of market expectations and no less than $19m, while bookings for FY22 are expected to be more than $116m.
David Richards, CEO and Chairman of WANdisco said the company is “delighted to have secured this agreement with a global automotive manufacturer.” He added that it shows the company is the “preferred choice for customers that want to seamlessly and securely migrate large scale data from on premise and edge platforms to the cloud.”
“As we exit 2022, we look forward to 2023 with confidence; not only do we expect to convert the significant opportunities we have in our pipeline but we hope to see increased consumption from all of the agreements signed in 2022, providing increased revenue visibility as we progress through the year.”
At the time of writing, WANdisco shares are up 0.71% at 873p. However, they opened up Thursday's session higher at 899p per share.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.