Verimatrix (VMX) H1 2024 earnings summary

Executive summary

• H1 2024 revenue grew 1% year-over-year to $30.8M, with recurring revenue up 14% and now representing 55% of total revenue.

• Subscription ARR increased 25% year-over-year, and subscription revenue rose 31% to $8.6M.

• Adjusted EBITDA for H1 2024 was $1.7M (5.5% margin), a 351.5% increase from H1 2023.

• Commercial momentum in Latin America (+62% YoY revenue), with notable customer wins and industry awards.

• Continued transformation toward a recurring revenue model and cost optimization.

Financial highlights

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

• H1 2024 recurring revenue reached $17.1M (+14% YoY); subscription revenue $8.6M (+31%); non-recurring revenue $13.7M (-12%).

• Adjusted EBITDA for H1 2024 was $1.7M (5.5% margin); adjusted net loss improved to -$3.3M from -$4.9M YoY.

• 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 end-2023, mainly due to delayed customer payments.

Outlook and guidance

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

• Continued EBITDA improvement targeted through recurring revenue growth and cost control.

• Anti-Piracy activity expected to stabilize; Extended Threat Defense (XTD) to post strong growth.