Verimatrix (VMX) H2 2024 earnings summary

Executive summary

• Achieved 22% year-over-year growth in subscription ARR, reaching $18M at year-end 2024.

• Recurring revenue accounted for 60% of FY 2024 total revenue, growing 11% to $34.1M.

• Total FY 2024 revenue was $57.2M, down 7% compared to 2023, mainly due to deferred perpetual license sales.

• Adjusted EBITDA more than doubled to $2.8M, with adjusted net loss improving to -$7.7M from -$10.1M.

• Cash and cash equivalents at year-end were $11.0M, down from $22.6M, impacted by investments and debt repayment.

Financial highlights

• Q4 2024 total revenue was $12.3M, a 28% decrease 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, reflecting delayed customer investment decisions.

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

• Operating expenses decreased 11.7% to $42M, with significant reductions in sales, marketing, and G&A costs.

Outlook and guidance

• Targets double-digit growth in ARR for 2025, with recurring revenue expected to comprise two-thirds of total revenue.

• Aims for an EBITDA-to-sales ratio close to 10% in 2025.

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