Verimatrix (VMX) H2 2024 earnings summary

Executive summary

• Adjusted EBITDA more than doubled to $2.8M, driven by 22% growth in subscription ARR and improved operational efficiency, despite a 7% revenue decline to $57.2M.

• Recurring revenue accounted for 60% of FY 2024 total, growing 11% to $34.1M, while net loss narrowed to -$7.7M.

• Subscription ARR reached $18M at year-end 2024.

Financial highlights

• Q4 2024 revenue was $12.3M, down 28% year-over-year, with recurring revenue up 12% and non-recurring revenue down 61%.

• FY 2024 recurring revenue grew 11% to $34.1M; subscription revenue rose 26% to $17.3M.

• Non-recurring revenue for FY 2024 declined 25% to $23.1M.

• Gross margin for FY 2024 was $39.1M (68.3% of revenue), down from $43.4M (70.4%) in 2023.

• Adjusted EBITDA margin improved to 4.9% from 2.2% year-over-year.

Outlook and guidance

• 2025 targets double-digit ARR growth and an EBITDA-to-sales ratio close to 10%.

• Recurring revenue expected to comprise two-thirds of total revenue.

• Plans to expand into new verticals and partnerships to accelerate recurring revenue transformation.