Crossword Cybersecurity Reports Widened Pretax Loss Despite Revenue Growth

Crossword Cybersecurity announced on Thursday that its pretax loss for the first half of the year has widened, mainly due to rising expenses. However, the company also reported a significant increase in revenue.

During the first half of the year, Crossword Cybersecurity's pretax loss reached £2.55 million ($3.1 million), compared to a loss of £2.3 million in the same period last year. The increase in loss can be attributed in part to a 13% rise in administrative expenses, reaching £2.5 million.

Despite the wider loss, the company experienced strong revenue growth. Revenue rose from £1.5 million in the previous year to £1.9 million this year. This growth was observed across all revenue streams. Additionally, annualized recurring revenue also saw an impressive increase of 35%, reaching £2.7 million.

Crossword Cybersecurity's overall growth margin also improved, rising to 20% from 16%. However, the loss before interest, taxes, depreciation, and amortization widened slightly to £2.1 million from £2.0 million.

While the company did not provide specific guidance for 2023, it anticipates achieving total revenue of approximately £8 million in 2024. Furthermore, it aims to reach Ebitda and cash breakeven on a monthly basis during the second half of 2024.