- Strong growth in subscription-based ARR1: $16.5m (+34%)
- Recurring revenue: 60% of total revenue, at $8.5m (+14%)
- Consolidated revenue: $14.2m (+1% vs. Q1 2023)
AIX-EN-PROVENCE, France & SAN DIEGO–(BUSINESS WIRE)–Regulatory News:
VERIMATRIX (Euronext Paris: VMX, FR0010291245), a leading provider of security solutions for a safer connected world, is publishing its revenue for the first quarter of the 2024 financial year ended 31 March.
“In line with 2023, the strategy implemented by VERIMATRIX in recent years is producing results. This strong start to the year confirms the outlook for recurring revenue growth over the full year. In first-quarter 2024, revenue growth was driven by a sharp increase in recurring revenue to $8.5m, up 14% compared with the same period a year earlier, fuelled by a substantial 31% increase in subscription sales to $4.2m. Recurring revenue now accounts for 60% of total revenue.” Amedeo D’Angelo, Executive Chairman of VERIMATRIX.
***
Amedeo D’Angelo, Executive Chairman, and Jean-François Labadie, Chief Financial Officer, will host a webcast today at 6.00 pm to present Q1 2024 revenue.
To join the webcast, click on the following link: “Q1 2024 revenue”
To join the webcast, audio only, call the following number.
France: +33 (0) 4 88 80 09 30
Phone Conference ID: 910 112 542#
***
- Revenue driven by recurring revenue and subscription sales
|
(US$ million) |
|
Q1 |
Q1 |
Chg. |
|
Recurring revenue |
|
8.5 |
7.5 |
+14% |
|
of which subscriptions |
|
4.2 |
3.2 |
+31% |
|
of which maintenance |
|
4.3 |
4.2 |
+2% |
|
Non-recurring revenue |
|
5.7 |
6.5 |
-13% |
|
Total revenue |
|
14.2 |
14.0 |
+1% |
|
|
|
|
|
|
|
ARR |
|
32.3 |
28.7 |
+12.5% |
|
of which subscriptions |
|
16.5 |
12.3 |
+34% |
|
of which maintenance |
|
15.8 |
16.5 |
-4.2% |
Recurring revenue
Recurring revenue increased 14% in Q1 2024, to $8.5m, versus $7.5m in Q1 2023. Recurring revenue accounted for a full 60% of total revenue over the period. This proportion is constantly increasing and set to reach the target previously communicated by VERIMATRIX of 70% by 2025.
Recurring revenue generated from subscriptions continued to grow, up an impressive 31% to $4.2m, compared with $3.2m in Q1 2023.
Revenue generated by maintenance totalled $4.3m in Q1 2024, versus $4.2m in Q1 2023 (+2%).
Non-recurring revenue
Non-recurring revenue fell 13% to $5.7m. Fee income related to set-top boxes continues to fall, while the sale of perpetual licences is holding up well, with a limited decline in Q1 2024 versus Q1 2023. It should be noted that business in Q1 2023 benefited from strong perpetual licence sales, mainly from long-standing telecom operator customers in Europe and Latin America.
ARR
Total ARR at 31 March 2024 stood at $32.3m, up 12.5% compared with 31 March 2023 and $31.2m at the end of 2023.
Consistent with VERIMATRIX guidance, Q1 2024 benefited from the signing of major contracts. Subscription-based ARR increased sharply, by 34% to $16.5m, compared with $12.3m at 31 March 2023, and by 11% compared with Q4 2023. Sales momentum was strong in the Latin American region, with the signing of a major new subscription contract with a long-standing Mexican customer in video protection (Anti-Piracy).
- 2024 outlook confirmed
VERIMATRIX expects the Anti-Piracy business (Content video protection) to stabilise in 2024 as a result of two current trends: the continued decline in the broadcasting market, offset in part by growth in OTT, and the transformation of the sales model to a recurring revenue model. The Extended Threat Defense (XTD) business will continue to grow strongly, particularly in new market segments including banking and automotive. ARR from subscriptions is expected to grow by more than 20%. The company aims to continuously improve EBITDA through growth in recurring revenue in its two business activities and a controlled and primarily fixed expense structure.
Upcoming events:
Shareholders’ Meeting: 13 June
Publication of H2 2024 revenue and results: 25 July 2024 (after market)
About Verimatrix
Verimatrix (Euronext Paris: VMX) helps power the modern connected world with security made for people. We protect digital content, applications, and devices with intuitive, people-centered and frictionless security. Leading brands turn to Verimatrix to secure everything from premium movies and live streaming sports, to sensitive financial and healthcare data, to mission-critical mobile applications. We enable the trusted connections our customers depend on to deliver compelling content and experiences to millions of consumers around the world. Verimatrix helps partners get to market faster, scale easily, protect valuable revenue streams, and win new business. Visit www.verimatrix.com.
Forward-looking statements
This press release contains forward-looking statements concerning VERIMATRIX. VERIMATRIX feels that its forecasts are based on reasonable assumptions, but they do not represent guarantees of future performance. Consequently, the Company’s actual performance may differ noticeably from that forecast in forward-looking statements due to a number of risks and uncertainties.
_______________________
1 ARR: annual recurring revenue.
Contacts
Verimatrix Investor Contact:
Jean-François Labadie
Chief Financial Officer
finance@verimatrix.com
SEITOSEI.ACTIFIN
Mathilde Guillemot-Costes
mathilde.guillemot@seitosei-actifin.com
Verimatrix Media Contact:
USA
Matthew Zintel,
Public Relations
matthew.zintel@zintelpr.com
Europe
Lara Joseph, Eskenzi Relations presse
lara@eskenzipr.com
Financial press
SEITOSEI.ACTIFIN
Michael Scholze
Michael.scholze@seitosei-actifin.com
