Hi, everybody. Welcome to our annual result presentation for 2024. We will begin by presenting WALLIX and a few words on the context. After, we will enter into the figures with Amaury, and we will complete the presentation talking about our perspectives. Let's drop into the presentation. Perhaps before coming back to WALLIX today, I want to perhaps tell a few words about the geopolitical and economic context today, which is particular. We are not in a war economy, but we have to prepare our efforts for war. It is a context where a lot of critical strategic needs are emerging, and one particularly important key issue will be our capacity to protect our critical infrastructures and digital contents, our data in the coming years, as the data will be strategic and as the resilience will be strategic for us all in the continent.
This has consequence in the different European countries where, for example, in France, our government decided to double the budget spent during the five years coming. We will double our budget for defense and security. At the same time, in Europe, Ursula von der Leyen talked about new says that we are going to create a loan of EUR 150 billion, which will be spent in Europe to increase our defense and military program. Of course, these are big news. Another is the EUR 800 billion which will be invested by Europe to increase our defense against the potential war with Russia. In this context, Europe is in the process of arming itself. It remembers me the sentence of one of our previous defense minister in France, Jean-Yves Le Drian, who said a few years ago that cybersecurity is the fourth weapon of the 21st century.
Cybersecurity will be, of course, key as an offensive weapon and a defensive weapon. Of course, we understand that our countries, Europe, will increase the expense and the investments in the cybersecurity space and to protect its critical infrastructure. The market, the cybersecurity sector will increase, will grow significantly in the coming years, which of course is something important for WALLIX as our mission at WALLIX is to bring cybersecurity solutions to protect the identity, the users, the digital access within companies, within administrations to ensure a more secure digital world. Our mission, our commitment is to bring the right solutions to protect the identities, the passwords, the access, to trace the activities, to increase the defense and the protection when the users are accessing to data, to develop strong architectures in the customer environments.
WALLIX is a European software vendor, which means that for WALLIX, the mission is to bring either the right level of protection or to protect the personal and industrial data, which is the pillar of the European digital industry in general. So it fits perfectly with our mission to bring the right level of protection with our solutions. WALLIX is positioned as a natural leader in this context to enhance our digital sovereignty in Europe. How are we going to do that? We are going to do that thanks to our platform. Thanks to the digital cybersecurity services we offer around our solution, WALLIX One-PAM, which helps to work in a daily basis in a secure and simple way to protect the users, to protect the data, to protect the access.
Our solution has been recognized by the main analysts of the market in Europe, in the U.S., in the world. Our solution has another particular characteristic to be the only solution certified by European cybersecurity agencies like the ANSSI in France. We are currently following the certification process in Germany, in Spain, so we will be the official European certified solution of the market. At the same time, we have produced a significant investment and effort with our R&D teams since 18 months now to be able to industrialize our solution and digital cybersecurity services, and to become ISO 27001 at the end of 2024. Now we have the right level of service with the right standard to develop these digital cyber services all around the world. WALLIX is, as you know, the European leader in identity and access cybersecurity solutions. We have 3,500 customer base, active contracts.
These customers are based in 90 different countries thanks to our partners of channels, resellers, distributors, managed security providers. With 248 people, we generate EUR 34 million of revenue in 2024. Our revenue are generated over a market of EUR 1 billion revenue of PAM and IAM niche markets in the world. Today, 68% of our revenue are recurring thanks to the transformation of the activity of the company, its products and offers, and the switch to cloud, direct to cloud strategy of many of our customers on the market. After having talked about WALLIX, let's enter now into the figures with the annual results, which are really expected by the market as you know. First, let's talk about what we promised to the market. WALLIX, as I explained last presentation one month ago when we talked about the 2024 revenue. Revenue, yes.
We explained how WALLIX is now presenting to the market a new profile, and we talked about our different objectives in which we had a clear commitment, change the dimension of WALLIX with a profitable and financial autonomy. Today, we have delivered this commitment. First, we are continuing to develop a hypergrowth of our recurring revenue. We have delivered a positive operating result in the second half of 2024. Our financial autonomy is preserved, and we have, in a context where it is still fragile, sometimes uncertain, we are delivering these strong results in the context which opens us a lot of opportunities in the future. Let's analyze these key elements and KPIs with Amaury.
Thank you, Jean-Noël. First, we should mention the hypergrowth in recurring revenues, semester after semester, year after year, reached a new record at nearly EUR 25 million of annual recurring revenue. As already discussed when we published the turnover, this represents a growth of more than 24% of our monthly recurring revenue, with an average of more than 26% over the last three years. Turnover is also growing at double-digit rates with recurring revenues, the core of our commercial strategy, that are up by more than 30%. This growth compensates the slight inflection in perpetual licenses even if we return to growth in Q4. To transform this growth into profitability, we have created leverage effect. First, we have generated a leverage effect on talents by renewing a dynamic growth in the turnover ratio per FTE.
After a plateau at the end of 2023, there is an increase in productivity at the end of 2024. The first effects were very visible in the second half of the year since we reached the target of EUR 150,000 per FTE in the second half of the year versus EUR 137,000 per FTE for the full year. We will see this full impact of this productivity increase in 2025. Second leverage to turn growth into profitability, put operating expenses under control. In H1, we are still in a phase of cost structure where revenues increased slightly faster than operating expenses. In H2, we entered a phase where operating leverage was highly positive since our revenue growth was well above that of our operating expenses, with even a slowdown in expenses.
We see a real effect of our expenses management plan with a yearly increase of OPEX of 4% when revenue growth grew by nearly 13%. The last key point of the 2024 results is the success of our quality improvement plan that helped us to resolve what is known in the jargon as technical debt. This corresponds to a period dedicated to optimization of our software suite, during which we have brought our products to the highest level of quality, as attested by the ISO 27001 certification obtained by our SaaS offer. This huge job that couldn't be capitalized in the R&D because it didn't directly concern the development of innovation. This management of technical debt is now behind us.
It means that without any increase in R&D staff expenses, we get an increase of 60%- 70% of our innovation capacity and have an approach aligned with long-term investment standards that can be capitalized and amortized over five years. It's clearly stated by the dip in the curve in 2023. Now we are back to normal. All these results on the income statement for the second half of 2024, we can see the acceleration growth as mentioned with revenues rising from EUR 15 million in H1 to nearly EUR 19 million in H2. As previously explained, we can also see an optimization of expenses, which allows us to post a positive second half of the year, both in terms of operations and net income as we had promised it. Over the year, the net loss was divided by two between 2023 and 2024.
It's very important to understand that the second half of the year is shaping the new WALLIX. Thus, 2025 will be in line with the second half of the year rather than the full year with still an important growth in the expected revenues. We have also strengthened our financial strength and independence. We divided our cash burn by three between the first and the second half of the year. We spent EUR 4.8 million in first semester and EUR 1.6 million in the second half. At the end of the financial year, we have a very sound cash position of more than EUR 11 million even as we enter a profitability cycle, and we now have the capacity to stabilize and preserve the cash. Finally, an update on the balance sheet. In addition to the level of cash, there is a financial debt of EUR 8.3 million, including EUR 5 million in convertible bonds.
52% of this debt has more than three years, is therefore mainly a medium-term debt, which cannot be amortized and doesn't weigh on our annual cash flows. We should also note that the 12-month deferred revenues increased by 21%, which conforms our dynamism while moving to subscription. We reviewed the financial results. Let's now take a quick look at the extra financial aspect of the 2024 financial year together with Jean-Noël.
Thank you, Amaury. Let's talk about this extra financial maturity of the company. It is something where we invest money. We invest on the behaviors in the company, and it is interesting to be recognized such as a virtuous company. First, we could stress the point that we obtained our EthiFinance gold medal. We are now the seventh in our sector compared to 274 companies. We are now one of the most efficient CSR company on the market. At the same time, we have also been awarded by Greenly with a silver medal, which will stress the fact that we are taking into account the carbon efficiency and the climate transformation among our investments and behaviors. It is something which has been identified by our R&D manager as an important aspect of our differentiation in the future.
It is also something which differentiates European compared to other continents. For us, it's important. We are spending efforts to do that, so it's a great award. At the same time, the non-financial covers many dimensions at WALLIX. As you know, we have created a particular program at WALLIX, the program WALLIX WE EDU, which is dedicated to education and cybersecurity awareness. Our objective is to bring our license, to bring our trainings to teachers, and behind teachers, the students in engineering schools, in universities, with whom we are working to allow the students to be trained and certified with a professional solution which help them to valorize themselves, to evaluate themselves on the market in the future.
It's our contribution to the next generation and to, I would say, the capacity of these future generations to keep in mind the importance of digital trust and cybersecurity in their daily life. After having talked about this extra financial contribution of the company and position of the company, let's talk about our perspectives in 2025. To enter this chapter of the perspectives, I think it is interesting to remind that we are going to celebrate in June our 10th years anniversary on the stock market. For those who remember WALLIX at the IPO, we were a French promising startup specialized in the cybersecurity space industry with a PAM solution. Our PAM solution was distributed in Western Europe, France, and close countries, I would say. Since 10 years, we have made a lot of transformations. First, we have developed the market we are covering now.
We have multiplied our market size by eight today, still focusing on PAM in many continents and some niche markets in the IAM space globally. Our WALLIX addressable market today is around EUR 1 billion, which has been multiplied by eight since the IPO. Over the years, we have expanded this addressable market. We have developed significantly our customer base by 16, which allowed us to multiply by nine our turnover. We have, of course, strengthened our teams, but in the same time, we have multiplied our turnover and the recurring part of our turnover. At the end of our plan in 2024, at the end of the year, we are coming back to profitability in the second half of the year.
Which is, of course, a significant achievement, and globally, which has transformed WALLIX as a promising ETI of the cybersecurity space and a global positioning in the leaders of the market. What could we remember from this evolution? Two major lessons have emerged from this evolution. Each development cycle from the IPO in 2015, and the second cycle from 2018 to 2024, we have dropped temporarily the profitability of the company. We have dropped temporarily our profitability to increase the level of our investments after having raised money to develop our software suite, to develop our market coverage, to develop our channel of resellers, and to set up a new playbook, which is currently the main engine of our commercial development. Now, after two cycles of development, where we have returned at the end of the cycle to profitability, we enter a new cycle of development today.
This new cycle of development will offer new perspectives, and we have decided not to drop the profitability of the company at the beginning and to develop this new cycle of development. This new cycle of development will be marked by a strong performance of the business, continuing to produce hyper growth in our recurring revenues. To end the transformation of our business model, as we explained before, with this new playbook and a three-tiers business model to cover every sectorial and size of customers with the right go-to-market strategy. We will continue and end this transformation to scale the company. At the same time, we are going to continue to improve our productivity, our operational efficiency, and our workforce stability. We don't need to increase the number of salary employees at WALLIX to develop our actual business model.
Our future resources will be dedicated to develop new revenue generations. At the same time, we are going to continue to improve our purchasings. We have stabilized our cost and expenses, and of course, this will help us to have positive operating results in 2025 on a full-year perspective. This allows us to have now our complete financial autonomy. We won't need to go to the market to ask for money to the market to develop our company and our model today. This new market profile of WALLIX is the market profile of a software company with a strong profitable growth based on a solid financial position. Now, let's talk about the medium term and macro term perspective, and the macroeconomic trends that are shaping the future of cybersecurity, particularly in Europe, Middle East, and Africa, I would say out of America.
First, we know now that a new European doctrine is currently deploying. First, with the Cyber Resilience Act, Europe will invest in its sovereignty, the sovereignty of its infrastructure, and the sovereignty of its data. At the same time, we know that we are going to invest more in the defense budgets and to increase our GDP on these particular budgets in every European country to be able to be more sovereign, to increase our defense, to preserve our peace. Last but not least, Europe has displayed its will to make European leaders emerging. In this context, it is interesting to look at the Magic Quadrant of the Gartner where 10 leaders are now emerging. When we look at these 10 leaders, one is Indian, eight are Israeli-American, one is European, WALLIX. For us, it means that we are the European leader in reference.
We are the unique European solution to bring the right guarantee of either performance or sovereignty. Gartner recognizes the quality of our solution and how our solution is relevant in the OT environments and when there are OT assets to protect. A few figures to illustrate the strategic position of WALLIX. WALLIX is now securing 80% of the infrastructures and the access of the operator of essential services in France. Since 2018, France has decided to bring new regulation to the market with the Directive NIS 1. 300 important organizations and companies are concerned in France, and we have a market share of 80% on these particular vital operators. We are now entering a new phase where Europe has decided to switch to the new NIS2 Directive from 2025.
It is, of course, an important switch because we are talking in France about 15,000 companies to be compared to the 300 vital operators previously. Now 15,000 companies, organizations will be concerned in France, and we talk about 150,000 essential operators in all the countries of Europe. Now the challenge and the issue for WALLIX is, and the question we have at WALLIX today is how many of these 150,000 companies in Europe will select WALLIX as their main solution to protect their digital access and their identities, their users? This is the challenge where we are fully focused now at WALLIX, and we feel that we are in an excellent position in the context with the right level of solution and the right business model to cover the market to, I would say, develop WALLIX in the future thanks to these deep trends.
To finish this presentation today and before opening to the question and answer session, it is interesting to look at the past 10 years regarding the valuation of WALLIX, the enterprise value of WALLIX, sorry. If you remind WALLIX 10 years ago, the enterprise WALLIX when we entered the stock market was at EUR 30 million. Since that, we have produced a lot of investments and efforts. In 2015, our shareholders were the managers and founders, our historical investors, like Thierry Dassault and French firms, and some European investors, but very few. Now, in early 2025, our enterprise value has come to EUR 80 million, and we have been able to convince new investors, American, U.S. firms and American investors, European investors to join our shareholders base. We have opened more wider to the retail, who is now owning 30% of our stocks.
With the valuation, the current valuation of the company, we are still convinced that we have a lot of new investors to convince to come to join us in the future. When we compare this valuation of WALLIX today at around the enterprise value of WALLIX today is three times our annual recurring revenue. It is interesting to compare this enterprise value and this multiple to our competitors, to other companies of the cybersecurity space. So that explains our optimistic point of view regarding the evolution of WALLIX in the future and the capacity for other investors to join us. Thank you very much for having listened this presentation.
I hope you understand that we are, of course, still humble and rational, but we are, of course, happy with all the WALLIX teams to have produced this effort to generate such a second semester in 2024 to come back to profitability. We have a short time to celebrate because we have a lot to do in the context in the coming months, quarters, and years. Thank you for the presentation, and I propose you to enter the Q&A session with Amaury and I.