Verimatrix (VMX) H1 2024 earnings summary

Executive summary

• H1 2024 revenue stabilized at $30.8M (+1% year-over-year), with recurring revenue up 14% and subscription ARR up 25%.

• Adjusted EBITDA for H1 2024 was $1.7M (5.5% margin), a 351% increase from H1 2023, surpassing full-year 2023.

• Notable customer wins and multiple industry awards for technology leadership and innovation in cybersecurity and in-app protection.

• Business refocus and cost optimization led to reduced sales and marketing expenses and improved profitability.

• New solutions launched and deployed for anti-piracy and threat defense across financial and media sectors.

Financial highlights

• Q2 2024 total revenue was $16.6M (flat year-over-year); recurring revenue grew 14% to $8.6M, subscriptions up 33%.

• H1 2024 recurring revenue: $17.1M (+14%), subscriptions: $8.6M (+31%), non-recurring: $13.7M (-12%).

• Adjusted net loss improved to -$3.3M from -$4.9M year-over-year; IFRS net loss was $4.4M (vs. $7.3M in H1 2023).

• Gross margin declined to 69.7% from 72.0% due to increased customer support and higher depreciation.

• Cash at end-June 2024: $12.6M, down from $22.6M at year-end, mainly due to delayed customer payments.

Outlook and guidance

• 2024 objectives: resilient anti-piracy revenue, strong growth in threat defense, and ARR subscription growth above 20%.

• Continued transformation with a focus on recurring revenue and EBITDA improvement.

• Anti-piracy activity expected to stabilize; Extended Threat Defense to post strong growth.