FirstWave Extends and Expands Contract With Telstra

FirstWave Cloud Technology Limited  (ASX: FCT) (FirstWave), the global cybersecurity technology company, announces the extension and expansion of its contract with key customer Telstra, Australia’s largest telecommunications company.

The contract has been extended for an additional two years with a further two-year option, and the scope has been expanded to include additional cybersecurity services provided through FirstWave’s CyberCision platform.

In FY21 approximately $6.5m revenue was generated from the Telstra agreement with over 95% being recurring revenues.

FirstWave CEO Danny Maher said ”We are pleased to deepen our longstanding relationship with Telstra, our largest customer. The expanded scope of our extended contract reflects Telstra’s increased focus on its cybersecurity offerings and confidence in FirstWave’s capabilities to provide its customers with best-in-class cybersecurity technology.”

Telstra CEO, Andy Penn recently noted the significant increase in malicious cyber activity Telstra has seen across its networks and the deteriorating threat environment being faced by its customers. We look forward to protecting more Telstra customers from cyberattacks and growing our revenues together with Telstra through the wider implementation of our CyberCision platform.

In addition to the extended agreement, FirstWave and Telstra have commenced a collaborative marketing campaign to strengthen the marketing and sales of the contracted products through Telstra’s sales teams and channels. The joint effort, led by FirstWave Chief Marketing Officer Ehsan Jahandarpour, is expected to deliver an enhanced customer experience for Telstra customers and increase revenues for both companies.

Following its recent restructure driven by the acquisition of Opmantek, FirstWave is prioritising Telstra as a key account and is focused on improving its sales enablement process with key account management to open significant new revenue streams.

Download the FirstWave ASX announcement here

 

Supplementary notice – Telstra Contract Renewal FirstWave Cloud Technology Limited (ASX: FCT)

(FirstWave), the global cybersecurity technology company wishes to provide further information about its extended and expanded contract with key customer Telstra.

Telstra has been a key client for FirstWave throughout FirstWave’s history. Revenues from the contract comprise of recurring fees to FirstWave from Telstra for administrative, support and infrastructure services of around $2m per annum with the remaining revenues being derived on a per-user fee for licensing and support from Telstra’s resale of FirstWave’s security services to Telstra’s end customers.

Telstra’s end customer contracts vary in length from one to five years and hence in some instances are longer than the current FirstWave / Telstra agreement. These contracts would survive termination generating future revenue and requiring continuing licensing and support even if the Telstra agreement was not renewed in the future and these contracts were still current.

Under the terms of the reseller agreement with Telstra, FirstWave retains exclusive rights to FirstWave’s intellectual property. This contract renewal also provided an opportunity to define and agree to additional new security products and services aligned with Telstra’s security product growth strategy.

Download the FirstWave ASX announcement here