In This Article:
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Net Sales Growth (Q4 2024): 23.1%, reaching 6.8 million.
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EBDA (Q4 2024): 1.7 million.
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Annual Net Sales Growth (2024): 9.0%, totaling 22.2 million.
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Annual EBDA (2024): 3.4 million.
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Subscription ARR Growth (Q4 2024): 7.4%.
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Privex Subscription Growth (Q4 2024): 16%.
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Privex Subscription Growth (2024): 23%.
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Deferred Revenue Increase: 1 million, reaching 13.5 million by year-end.
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Cash Flow from Operations (Q4 2024): 3.2 million.
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Liquidity Improvement (Q4 2024): Increased by over 2 million, reaching 2.9 million at year-end.
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Annual Recurring Revenue (2024): 20.5 million, up from 19.3 million in 2023.
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SSH Communications Security Oyj (FRA:XXH) reported a strong performance in Q4 2024, with net sales growing by 23.1% compared to the previous year.
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The company achieved significant improvements in financial performance for the full year 2024, with EBITDA reaching 3.4 million.
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Subscription Annual Recurring Revenue (ARR) grew by 7.4%, with Privex subscription growth at 16% in Q4 and 23% for the full year.
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The liquidity situation improved substantially in Q4, with cash flow from operations reaching 3.2 million.
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SSH Communications Security Oyj secured several multi-year Zero Trust suite deals in EMEA and APAC, expanding its market presence.
Negative Points
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The company faced challenges in growing its market presence in the US, with plans to rebuild under new leadership and strengthen its sales and marketing team.
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The anticipated total contract value for the NQX project is expected to be smaller than initially estimated due to changes in market conditions.
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The company had to reduce headcount in the second half of the year, which contributed to cost savings but also indicates restructuring challenges.
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The US market growth was flat, and the company needs to obtain further product validations to penetrate certain segments.
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The transition to quantum-safe technologies is ongoing, and the company faces competitive pressure from global advancements in quantum computing.
Q & A Highlights
Q: Can you provide more details on the strong growth in license sales and what to expect for 2025? A: Michael Kommonen, CFO, explained that a significant portion of the license sales growth in Q4 was due to the cryptographic solution announced in early 2024, with half of its 1.8 million value recognized in Q4. Looking forward, they expect continued license sales as some customers prefer CapEx over OpEx.