Net sales increased by 6%, EBITDA remained positive
January–March 2024:
- Net sales totaled
EUR 5.0 million (4.8 million)
- EBITDA was
EUR 0.2 million (0.2 million)
- Operating profit was
EUR -0.7 million (-0.7 million)
- Loss for the period was
EUR -0.8 million (-0.9 million)
- Earnings per share was
EUR -0.03 (EUR -0.03 )
Operating cash flow was
A PDF file of the Business Review is attached to this release.
EUR million | 1–3/2024 | 1–3/2023 | Change % | 1–12/2023 |
Net sales | 5.0 | 4.8 | 5.8 | 20.3 |
EBITDA | 0.2 | 0.2 | 50.1 | 1.8 |
% of net sales | 4.7 | 3.3 | 41.9 | 8.9 |
Operating profit/loss | -0.7 | -0.7 | -2.6 | -1.6 |
% of net sales | -13.8 | -14.2 | -3.0 | -8.1 |
Profit/loss before taxes | -0.8 | -1.0 | 14.7 | -2.4 |
Profit/loss | -0.8 | -0.9 | 16.0 | -2.3 |
Return on equity, % | -8.9 | -9.2 | -3.3 | -22.8 |
Return on investment, % | -7.4 | -7.4 | 0.0 | -19.1 |
Liquid assets | 2.1 | 6.1 | -66.2 | 2.2 |
Short-term liquid investments | 2.0 | 1.5 | ||
Gearing (%) | 3.0 | -38.2 | 107.9 | 3.0 |
Equity ratio (%) | 48.0 | 46.8 | 2.6 | 49.2 |
Earnings per share, EUR | -0.03 | -0.03 | 0.0 | -0.10 |
Shareholders' equity per share, EUR | 0.22 | 0.25 | -10.2 | 0.25 |
Recurring revenue, ARR | 19.7 | 18.3 | 7.4 | 19.3 |
Subscription revenue, ARR | 12.0 | 10.3 | 16.3 | 11.5 |
Invoicing | 4.7 | 3.2 | 48.8 | 18.3 |
Deferred revenue | 12.5 | 12.8 | -2.3 | 12.6 |
Current | 10.4 | 9.7 | 6.8 | 10.2 |
Non-current | 2.1 | 3.1 | -30.8 | 2.4 |
Consolidated net sales
EUR million | 1–3/2024 | 1–3/2023 | Change % | 1–12/2023 |
By segment | ||||
1.9 | 1.8 | 4.1 | 7.8 | |
APAC | 0.4 | 0.3 | 45.0 | 1.5 |
EMEA | 2.7 | 2.7 | 2.5 | 11.0 |
Total | 5.0 | 4.8 | 5.8 | 20.3 |
By operation | ||||
Subscription sales | 2.9 | 2.6 | 14.5 | 11.1 |
License sales | 0.1 | 0.2 | -23.9 | 0.9 |
Maintenance sales | 1.9 | 1.9 | -2.8 | 7.8 |
Professional services & others | 0.1 | 0.1 | -4.8 | 0.6 |
Total | 5.0 | 4.8 | 5.8 | 20.3 |
EBITDA = Operating profit/loss + depreciation and amortization.
Recurring Revenue, ARR: Subscription + maintenance revenue at the end of the last month of the reported period multiplied by 12.
Subscription ARR: Subscription revenue in the last month of a reported period multiplied by 12.
Invoicing: Invoices sent during the reported period without VAT
Deferred Revenue: Non-recognized revenue from invoiced maintenance and subscription sales.
Business outlook for 2024
We expect net sales to grow during 2024 compared to 2023. We estimate EBITDA and cash flow from operating activities to be positive for 2024. At the end of 2023, our Annual Recurring Revenue was
CEO review
I am excited to take the reins of SSH. One of the first actions was to streamline and simplify the organization with clearer accountabilities, as announced in early Q2. This change will help us to get closer to customers, and better facilitate growth. Looking ahead, I see several areas, such as OT (Operational Technology) business accelerating our growth with new opportunities being developed with manufacturing, logistics companies and critical infrastructure operators.
Our growth continued in the first quarter of 2024. Net sales increased by 5.8% reaching
The main driver for growth was the 14.5% increase in subscription sales reaching
License sales continued decreasing as we have converted our business model into subscription.
Maintenance sales mainly relate to continued support contracts for software licenses sold in the past. Maintenance revenues remained stable at
Professional services is a support function focused on architectural design and planning at more complex customer cases. The professional services revenues were stable at
Subscription ARR totaled 12.0 million (10.3) and total annual recurring revenue (ARR) reached 19.7 million (18.3). Software subscription revenues represented 61% of annualized recurring revenues. Total ARR accounted for 95.7% (94.6%) of revenue in Q1.
We succeeded in winning several new customers and expanding current customers' orders during the first quarter. A new Mainframe Tectia z/OS customer was won in the AMER region. A major existing customer, a Japanese Systems Integrator, expanded their PrivX usage with a new order, with a value of a quarter of a million euros annually.
In
Secure Messaging 2024, a suite including secure chat, secure video calls, secure rooms and secure file sharing was brought to market, also as SaaS and promotional activities for the solution started. In the first quarter we won the first Secure Mail 2024 customer.
We also announced integration of our SSH Zero Trust Suite with Microsoft Entra which enables tight integration for key users accessing critical and sensitive data. This expands our business opportunities with the market leading IAM solution, and during the first quarter multiple sales opportunities have already been established coming from the announcement.
Changes in Group management team
Teemu Tunkelo left his position as the CEO and the Executive Management Team on
CTO
Michael Kommonen, Chief Financial Officer
Board of Directors
Interim CEO
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