SSH Communications Security (SSH1V) Q4 2024 earnings summary

Executive summary

• Net sales grew 9.0% year-over-year to EUR 22.2 million, with Q4 net sales up 23.1% to EUR 6.8 million, driven by strong license and subscription sales.

• EBITDA for the year rose 88% to EUR 3.4 million, with Q4 EBITDA at EUR 1.7 million, reflecting improved profitability.

• Celebrated 30th anniversary, emphasizing leadership in defensive cybersecurity and quantum-safe solutions.

• Major new customer wins across defense, energy, finance, healthcare, and gaming sectors.

• Expanded global presence, with 55% of revenue from Europe, 36% from Americas, and nearly 10% from APAC.

Financial highlights

• Annual Recurring Revenue (ARR) increased to EUR 20.5 million from EUR 19.3 million in 2023; subscription ARR up 7.4% to EUR 12.3 million.

• Deferred revenue increased to EUR 13.5 million.

• Operating cash flow was EUR 2.7 million, with liquid assets at year-end of EUR 2.9 million.

• Equity ratio improved to 52.8% from 50.0%; gearing turned negative at -8.9%.

• R&D expenses rose to EUR 8.9 million, 40.0% of net sales.

Outlook and guidance

• Net sales expected to grow in 2025 compared to 2024.

• EBITDA and operating cash flow projected to remain positive in 2025.

• Focus on accelerating growth in all regions, especially rebuilding the U.S. market and advancing quantum-safe solutions.