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Exclusive Networks delivers strong Q3
Distributor shows growth and increased cloud sales activity as it marks a year since its IPO
Exclusive Networks has celebrated the first anniversary of its IPO with a strong set of third-quarter numbers.
The distributor has consistently delivered for investors since going public and has kept that going with Q3 numbers that showed gross sales up 42% to €1.127bn.
Most of that growth was driven by existing vendor relationships across the cyber security market, and retention rates were up by 140% in the quarter, compared with the same period last year.
In terms of geographical breakdown, the EMEA region is still the engine for the business, producing 77% of quarterly gross sales, €857m, an increase of 44% year on year. Enterprise sales from the distie’s largest partners helped fuel that increase.
The Americas was also a strong area with gross sales of €155m, a 66% rise on the same period last year. With the region accounting for 13% of total sales, it overtook APAC, which delivered 10% of the total.
The firm also continued to drive cloud sales, with revenues on that front reaching €1bn annualised run rate.
“A year on from our successful IPO, I am delighted to report another very solid quarterly performance,” said Jesper Trolle, Chief Executive Officer at Exclusive Networks. “Our strong momentum since becoming a public company continues, with Q3 gross sales growing by 42% compared to the same period last year.
“Digital transformation and IT modernisation continued to drive market demand as cyber security teams strive to safeguard remote and hybrid working environments dependant on cloud-based delivery models. Cyber breaches show no sign of slowing and continue to hit the headlines, with cryptocurrency exchange Binance falling victim to a $570m crypto hack last month.”
The performance of the business so far this year has given Exclusive the confidence to raise its guidance, said Trolle. “We continue to see an upward trend in large enterprise deals as end customers continue to rationalise their security strategies toward a consolidated platform approach, leaning into channel partners to provide integrated solutions and flexible finance,” he added.
“Based on these strong results and our continued momentum, we remain confident in the revised full-year outlook given in September.”
Exclusive has extended relationships with vendors over the course of this year to get a broader geographical reach, but the firm has also continued to sign fresh relationships to extend its portfolio.
Earlier this week, Exclusive inked a deal with Cymulate to add the firm’s Extended Security Posture Management technology to the portfolio.
The vendor secured $70m Series D funding in September, and has already been acting on its ambition to grow its international channel business.
“We are delighted to be partnering with Exclusive across EMEA and APAC as we scale our international channel operations and accelerate our go-to-market momentum,” said Sam Murdoch, VP of sales EMEA and APAC at Cymulate.
