Verimatrix (VMX) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached $14.1M, up 1% year-over-year, driven by recurring and subscription-based sales.

• Recurring revenue comprised 60% of total revenue, progressing toward a 70% target by end-2025.

• Subscriptions ARR grew 27% year-over-year to $17.6M, now the largest revenue contributor.

• New contracts signed with Jio Platforms, Antena TV Group, and in the Middle East and Latin America, expanding presence in major markets.

• Security solutions, including Verimatrix Counterspy, won top industry awards for anti-piracy protection.

Financial highlights

• Q3 2024 recurring revenue was $8.4M (+4% YoY); non-recurring revenue was $5.7M (-4% YoY).

• Year-to-date recurring revenue reached $25.4M (+11% YoY), with subscriptions at $12.8M (+26% YoY).

• Non-recurring revenue for the nine months fell 10% to $19.5M, mainly due to lower royalties from set-top box deliveries.

• Total ARR at the end of Q3 was $32.9M (+10.4% YoY).

• Nine-month total revenue reached $44.9M, up 1% year-over-year.

Outlook and guidance

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

• Ongoing transformation aims to offset broadcasting declines with OTT growth.

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