Yubico (YUBICO) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with net sales up 44.8% to SEK 589.9 million and bookings up 53% to SEK 609.7 million, supported by robust growth across geographies and industries.

• Gross margin remained stable at 81%, with adjusted EBIT margin improving to 18.8% from 4% a year ago.

• Strategic partnership with PKO Bank enabled secure logins for 12 million customers, highlighting expansion in the financial sector.

• Customer base diversified, with financial services now the largest sector, and continued strength in public and high-tech sectors.

• Focus remains on large enterprise customers, with growing penetration in Global 2000 and Fortune 500 companies.

Financial highlights

• Q3 net sales: SEK 589.9 million (+44.8% YoY); Q3 bookings: SEK 609.7 million (+52.6% YoY); YTD bookings: SEK 1,861.2 million (+61.0%).

• Gross profit for Q3: SEK 478.0 million (gross margin 81.0%); adjusted EBIT Q3: SEK 110.7 million (18.8% margin).

• Net profit for Q3: SEK 81.2 million, compared to a loss of SEK 70.7 million in Q3 2023.

• Operating cash flow was SEK 67.6 million; cash and equivalents at SEK 727.6 million; net cash at SEK 676.1 million.

• Annual recurring revenue (ARR) from subscriptions grew 14.6% YoY to SEK 292.7 million.

Outlook and guidance

• Management targets at least 25% average annual net sales growth and 20% EBIT margin over five years.

• No dividends planned; cash flows will be reinvested in growth, both organically and via M&A.

• Demand for robust security products is accelerating due to AI-driven cyber threats and regulatory changes.

• No quarterly guidance provided, but broad-based growth and high renewal rates support continued momentum.

• Ongoing alignment with sustainability frameworks and digital identity initiatives in Europe.