In This Article:
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net sales grew by 7.9% in the first quarter, indicating positive revenue momentum.
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Subscription ARR growth was strong at 12.9%, with subscription sales increasing by 15%.
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The company closed several global deals across all three regions, particularly in Europe and APAC.
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Privex, a key product, saw a 19% growth in annual recurring revenue, with new customer wins.
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The liquidity position improved, ending the quarter with 3.5 million in total liquidity.
Negative Points
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EBIT was negatively impacted by a 0.4 million write-down due to refocusing R&D efforts.
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Increased spending on regulatory certifications and North American expansion affected profitability.
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Deferred revenues declined to 11.8 million due to seasonality.
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Cash flow from operations was slightly lower than previous quarters at 0.7 million.
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The US market did not grow in Q1, necessitating further strategic initiatives and investments.
Q & A Highlights
Q: Regarding the recruitment in the US, can you give us your trajectory for the rest of the year? Are you satisfied with the number of new recruitments, or will there be additional costs related to the US expansion? A: We have taken on more costs with the recruitments, but the main part of the investment for solution approvals, partner network development, and sales and marketing resources are now in place. We do not foresee any major further investments in that area for this year. Now, we need to see the results of that investment. - CEO Rami Ravas
Q: How do you balance the sales effort between APAC and the US going forward, given APAC's growth? A: The US is the biggest market, and we are working on improving our strategy and resourcing there. We have high expectations to turn the US market around, focusing on dialogues, new deals, and enhancing existing customer relationships. It's challenging to estimate how quickly this will reflect in numbers, but we are taking it step by step. - CEO Rami Ravas
Q: Privex grew 19% in the quarter. Do you think you can maintain a 20% growth rate for the rest of the year? A: We certainly target that and even higher. Privex is the biggest part of our business and the highest growth market. We see opportunities in both new markets and replacement markets, especially in the OT space. Our aspirations are high, and we foresee an opportunity to grow more in that space. - CEO Rami Ravas