11 January 2024

Windward Ltd.

("Windward", "the Company")

FY23 Year End Trading Update

Strong trading through 2023 drives 35% growth in ACV and 31% growth in revenue, as customer count reaches 200

Windward (LON: WNWD), the leading Maritime AI company, is pleased to provide an update on trading for the year ended 31 December 2023 (FY2023).

Following good trading throughout the year and a strong finish, the Board is pleased to report that it expects FY2023 results to be comfortably ahead of market forecasts*.

Subject to completion of the year end audit, revenue is expected to have increased by 31% to approximately $28.3m (FY2022: $21.6m), and adjusted EBITDA² loss to have reduced considerably to approximately $5.1m (FY2022: $12.1m). In H2 2023, revenue growth was 43% compared to the prior year period (H2 2022: 16%) and the adjusted EBITDA loss was $1.3m (H2 2022 $6.6m).

Customer numbers increased strongly in the year, now exceeding 200 (31 December 2022: 132). As a result, the Group's Annual Contract Value (ACV¹) as at 31 December 2023 increased by 35% to $34.5m, providing a strong basis for continued revenue growth in 2024. Commercial ACV now represents 30% of total ACV, up from 26% at 31 December 2022, demonstrating the successful execution of the Company's stated customer diversification and growth strategy.

The Company remains well capitalised with a net cash balance of $17.4m at the period end ($22.1m as at 31 December 2022). The Board believes that the Company's cash resources are more than sufficient to see the Company to profitability and cash generation. 

The Board expects to release audited results for the year ended 31 December 2023 in late March 2024. 

Ami Daniel, Co-Founder and CEO of Windward, commented:

"2023 has been a record year for Windward, winning multiple new customers while expanding our offering. We have delivered strongly on our execution and believe Windward's opportunity set has expanded.  As the evolving events in the Russia-Ukraine conflict and the security situation in the Red Sea demonstrate, the need for visibility and actionable insight across all facets of the maritime industry continues to grow, driving adoption of our maritime AI platform. We are committed to providing our customers with the insight they require to trade with confidence and have begun 2024 with continued good momentum."

* For the purposes of this announcement, Windward believes market consensus for FY2023 to be revenue of $26.6m and adjusted EBITDA loss of $7.0m

⁽¹⁾ ACV, as of a given date, is the total of the value of each contract divided by the total number of years of the contract.

⁽²⁾ Adjusted EBITDA is earnings before interest, tax, depreciation  amortisation and stock based compensation

⁽³⁾ All references to $ or USD are in respect of United States Dollars

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About Windward

Windward (LSE:WNWD), a publicly-traded company on the London Stock Exchange, is a leading Maritime AI company, enabling organisations to achieve business and operational readiness. Windward's AI-powered solution allows stakeholders including banks, commodity traders, insurers, and major energy and shipping companies to make real-time, predictive intelligence-driven decisions, providing a 360° view of the maritime ecosystem and its broader impact on safety, security, finance, and business. For more information visit: https://windward.ai/.

Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information for the purposes of article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No 2019/310 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.