SSH Communications Security (SSH1V) Q3 2024 earnings summary

Executive summary

• Net sales grew 1.5% year-over-year to €5.2 million in Q3 2024, with stable EBITDA of €1 million and continued profitability despite delayed customer deals and macroeconomic headwinds.

• PrivX subscription sales rose 15.6% in Q3 and 25.7% year-to-date, with overall subscription ARR up 1.8%.

• Deferred revenues decreased to €11.5 million, and cash flow from operations was -€0.7 million, down from €0.8 million in Q3 2023.

• Achieved NATO supplier approval and NQX solution certification, expanding market opportunities.

• Partner network expanded with new agreements and 50 engineers certified.

Financial highlights

• Net sales: €5.2 million, up 1.5% year-over-year; EBITDA: €1 million, unchanged from Q3 2023.

• EBIT: €0.1 million, flat year-over-year; loss for the period: €-0.1 million; EPS: €-0.06.

• Cash flow from operations: -€0.7 million, down from €0.8 million in Q3 2023; liquid assets: €0.8 million.

• Deferred revenues: €11.5 million, down from €12.5 million.

• Equity ratio: 50.6%; gearing: 19.2%.

Outlook and guidance

• Net sales expected to grow in 2024 compared to 2023, with positive EBITDA and operating cash flow anticipated for the full year.

• Cash position improved post-Q3, with further improvement expected in Q4 due to seasonal renewals.