Verimatrix (VMX) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 consolidated revenue was $11.5 million, down 19% compared to Q1 2024, mainly due to delayed perpetual license sales.

• Recurring revenue from subscriptions grew 10% year-over-year to $4.6 million, with ARR from subscriptions up 12% to $18.5 million.

• Non-recurring revenue dropped 49% year-over-year to $2.9 million, impacted by economic slowdowns in Brazil and Argentina.

• Strategic focus remains on expanding recurring revenue streams and diversifying the customer base through international partnerships.

Financial highlights

• Total recurring revenue reached $8.6 million, up 1% year-over-year, representing 75% of total revenue.

• Maintenance revenue declined 8% to $4.0 million.

• Total ARR at March 31, 2025, was $33.2 million, up 3% year-over-year.

Outlook and guidance

• Double-digit growth in ARR from subscriptions is expected for full-year 2025.

• Targeting an EBITDA-to-revenue ratio close to 10% for 2025, supported by revenue growth and cost control.