Wultra Annual Summary for 2019

Looking back at 2019, I must say that we had another great year. There are some things that worked exceptionally well… and some that did not. I would like to share my views on both of them.

Financial Results

Wultra will close the 2019 financial year with approximately $590k of total revenues. This represents a +70% revenue growth from 2018. Since we invested heavily in the sales team and into building an international sales strategy, we will not make much profit this year. We are still waiting for a more precise number but we expect “positive zero”.

Revenue Breakdown by Activity Type

Currently, about 55% of our revenue comes from our own product licenses and support related to our own products. This is also the most margin-building and healthy business activity and as such, it will remain at the core of our focus. 35% of our revenue comes from product license reselling, with a margin of about 15%. While the reselling business is a low-margin stream for us, we need to use 3rd party software in order to make our primary products competitive and as a result, resell the 3rd party licenses (at the same time, we are deliberately avoiding the “not invented here” syndrome and using 3rd party products wherever it makes sense). Finally, 10% of our revenue comes from consulting and implementation works, with approximately 20% margin. We cannot avoid this activity since it is usually related to solution deployment or prioritized improvements in our products.

Revenue Breakdown by Product Line

Currently, most of our revenue (about 50%) comes from the “Authentication” product line. This includes the mobile security suite, mobile token and web authentication (including the PSD2 Enabler). The second source of our revenue (about 45%) is the “Mobile Security” stream — both App Shielding and Antivirus for Mobile Banking. Finally, we make 5% of our revenue from the “Digital Identity” stream, currently represented by the Bank Business Card product.

Revenue Breakdown by Country

In 2019, almost all our revenue comes from customers in the Czech Republic. However, we managed to deliver our first international project in December — we helped to secure mobile banking for a bank in Romania. This income represented a marginal 1% of our revenues and we will cover it in a separate announcement soon.

Achievements

Product Development

• We introduced a new product: “Antivirus for mobile banking” — built-in antivirus protection for mobile banking, currently deployed with four banks. We helped to identify several login-stealing malware instances already.
• Our product development and software engineering work extremely well in general, improving our already established products, organizing their work efficiently on Github and documenting everything on our Wultra Developer Portal.
• Lukáš Lukovský joined the team and built the Antivirus plugin back-end.

International Sales Team

• In March 2019, we started building a sales team to drive our international expansion. We introduced both a local sales branch in Prague and a remote, fully independent branch in Athens/Tirana. The 9 month period is indeed not sufficient to launch an international presence for a company of our type. Our typical sales cycle is 12 months. We still have a lot of work to do in the sales and international business development areas.
• Prague: The sales branch in Prague, led by Tereza Gagnon, does a great job so far and is mostly responsible for the company growth in 2019. For 2020, we will invest more resources in the local sales branch.
• Athens/Tirana: The up-to-date results of the remote branch in Athens are inconclusive. We will be evaluating the performance and strategy for international sales at the end of Q1/2020. However, I already see that we made an unwise choice by attempting to cover the CEE / SEE region by generic sales, instead of slowly building quality relationships with the selected key customers. We will definitely change this and we will take a more focused and targeted approach in 2020.

New Projects in 2019

• We released RB Key for Raiffeisenbank this December.
• We helped Zonky secure their mobile app.
• With the SYNOT TIP project, we became a leader in digital identity verification for online games.
• We started a PSD2 API project for the Czech National Bank.

Awards and Certifications

• Wultra was awarded 6th place in the Rising Stars category of the Deloitte Technology Fast 50 in the CEE Region, with a growth of 822% over the course of 3 years.
• Wultra is now an ISO 27001 certified company.

Other

• Partnerships: We made a great partnership with the Banking Software Company, who delivered integration of the RB Key project for Raiffeisenbank and integrated our technology in their my/GEMINI platform. Zentity was another great partner for us, integrating our security components in Mobile eKonto by Raiffeisenbank with great confidence. We also found an excellent international partner by a hand of fate: AriadNext, a French identity company.
• StrandHogg: We helped to identify a banking login stealing malware StrandHogg, which exploits security weakness found in Google’s Android OS. Thanks to Promon, our valued technology partner, this became an internationally visible matter.
• Updated Website: We decided to switch the main Wultra website from a custom-built Wordpress to the Solidpixels platform with illustrations by ManGoWeb. Despite the initial worries (“Will the WYSIWYG platform be flexible enough?”, “Will it look good on desktop and mobile?”, …), the platform works very well so far. We are finally able to build new content quickly and iterate it in case we find something that can be improved.

And one more thing…

We are still growing and we will be looking for new colleagues. Specifically, we need help in those areas:

• QA Engineering
• DevOps
• Project Delivery
• Sales

If you like what we do at Wultra, or if you know about a friend who would be a great fit, let us know at hello@wultra.com.

Wultra aims to help the leading European banks build secure digital channels. Our software technologies cover the whole digital banking application stack, whether it be on the web or mobile.