TIDMSSH1V
SSH COMMUNICATIONS SECURITY CORPORATION -- STOCK EXCHANGE
RELEASE -- JULY 20, 2023, AT 09:00 A.M. EEST
Net sales increased by 9.2%, subscription ARR increased by
36.7%, and EBITDA remained positive
April--June 2023:
-- Net sales increased by 9.2% to EUR 4.9 million (EUR 4.5 million)
-- EBITDA was EUR 0.1 million (EUR 0.5 million), 2.9% of net sales
-- Operating loss was EUR -0.7 million (EUR --0.2 million), -14.6% of net sales
-- Cash flow from operations decreased by 36.5% to EUR -1.4 million (EUR -1.1 million)
-- Subscription revenue, ARR increased by 36.7% to EUR 10.8 million (EUR 7.9 million)
-- Recurring revenue, ARR increased by 12.3% to EUR 18.3 million (EUR 16.3 million)
January--June 2023:
-- Net sales increased by 9.3% to EUR 9.6 million (EUR 8.8 million)
-- EBITDA was EUR 0.3 million (EUR 1.1 million), 3.0% of net sales
-- Operating loss was EUR -1.4 million (EUR --0.4 million), -14.4% of net sales
-- Cash flow from operations increased by 288% to EUR 0.5 million (EUR -0.3 million)
The equity ratio was 51.6% (47.4%). Liquid assets at quarter-end
were EUR 2.6 million (EUR 4.4 million).
Change Change
EUR million 4--6/2023 4--6/2022 % 1--6/2023 1--6/2022 % 1--12/2022
---------------------- --------- --------- ------ --------- --------- ------ ----------
Net sales 4.9 4.5 9.2 9.6 8.8 9.3 19.3
---------------------- --------- --------- ------ --------- --------- ------ ----------
EBITDA 0.1 0.5 -73.0 0.3 1.1 -72.5 2.7
---------------------- --------- --------- ------ --------- --------- ------ ----------
% of net sales 2.9 11.9 -75.2 3.0 12.1 -74.8 13.9
---------------------- --------- --------- ------ --------- --------- ------ ----------
Operating profit/loss -0.7 -0.2 -1.4 -0.4 -0.4
---------------------- --------- --------- ------ --------- --------- ------ ----------
% of net sales -14.6 -5.2 -181.1 -14.4 -5.1 -2.3
---------------------- --------- --------- ------ --------- --------- ------ ----------
Profit/loss before
taxes -0.9 -0.1 -1.9 -0.3 -0.7
---------------------- --------- --------- ------ --------- --------- ------ ----------
Profit/loss -0.9 -0.2 -1.8 -0.4 -0.6
---------------------- --------- --------- ------ --------- --------- ------ ----------
Return on equity,
% -18.1 -3.3 -5.2
---------------------- --------- --------- ------ --------- --------- ------ ----------
Return on investment,
% -15.1 -2.1 -4.7
---------------------- --------- --------- ------ --------- --------- ------ ----------
Liquid assets 2.6 4.4 -40.9 5.7
---------------------- --------- --------- ------ --------- --------- ------ ----------
Gearing (%) -2.4 -10.6 77.4 -27.9
---------------------- --------- --------- ------ --------- --------- ------ ----------
Equity ratio (%) 51.6 47.4 8.9 46.1
---------------------- --------- --------- ------ --------- --------- ------ ----------
Earnings per share,
EUR -0.03 -0.01 -0.06 -0.03 -0.05
---------------------- --------- --------- ------ --------- --------- ------ ----------
Shareholders' equity
per share, EUR 0.25 0.29 -11.0 0.25 0.27 -5.7 0.28
---------------------- --------- --------- ------ --------- --------- ------ ----------
Recurring revenue,
ARR 18.3 16.3 12.3 18.4
---------------------- --------- --------- ------ --------- --------- ------ ----------
Subscription revenue,
ARR 10.8 7.9 36.7 9.9
---------------------- --------- --------- ------ --------- --------- ------ ----------
Invoicing 4.5 3.2 41.3 7.7 7.1 8.1 24.2
---------------------- --------- --------- ------ --------- --------- ------ ----------
Deferred revenue 12.6 7.4 70.3 14.1
---------------------- --------- --------- ------ --------- --------- ------ ----------
Current 9.0 6.2 45.2 10.6
---------------------- --------- --------- ------ --------- --------- ------ ----------
Non-current 3.6 1.2 3.5
---------------------- --------- --------- ------ --------- --------- ------ ----------
SSH Communications Security provides alternative performance
measures which are not defined by IFRS standards. Alternative
performance measures should not be considered substitutes for
performance measures in accordance with the IFRS. The alternative
performance measures are:
EBITDA = Operating profit/loss + depreciation and
amortization.
Recurring Revenue, ARR: Subscription + maintenance revenue at
the end of the last month of the reported period multiplied by
12.
Subscription ARR: Subscription revenue in the last month of a
reported period multiplied by 12.
Deferred Revenue: Non-recognized revenue from invoiced
maintenance and subscription sales.
The complete interim report is attached to this release (pdf)
and is also available on our
https://www.globenewswire.com/Tracker?data=Wp_u_NH3GB2slFn3QUDufLRbNrQC8QZSihoiHq5xRxe6yXZDDW_bBwZ2cdMamGnbdG14P07VGY4xTTXMFqW33ymY_t_jBkNQvt65w3H6aws=
website.
CEO review
Valued shareholders, customers, partners, and colleagues,
The second quarter of the year was affected by more uncertain
economic conditions delaying customer procurement procedures and
causing certain significant deals to be carried over to the next
quarter or the end of the year. Yet, we closed several mid-sized
deals, especially with PrivX and continued positive EBITDA. We
remain confident in our business and growth potential.
Our net sales increased by 9% to EUR 4.9 million, owing
primarily to the recurring business as subscription ARR grew 37%.
EBITDA stood at EUR 0.1 million (EUR 0.5 million). Cash flow from
operations was negative at EUR -1.4 million (EUR -1.1 million) due
to typical seasonality. Recurring revenue accounted for 94% of
total revenue in Q2, and Annual Recurring Revenue (ARR) grew by 12%
year-on-year, reaching EUR 18.3 million, of which EUR 10.8 million
is from subscription-based revenue.
Strengthening the long-term resilience of the business
By implementing a revenue model centered around subscriptions,
we have enhanced the stability and predictability of our revenue
streams. This strategic shift empowers us to offer continuous
support to our customers while providing them with uninterrupted
access to the latest features and updates and ensuring the
long-term viability of SSH solutions. We have continued to invest
in our marketing, engineering, and R&D teams, resulting in a 20
% year-on-year increase in employees.
Quarterly sales growth continued strong in EMEA at +18%,
followed by AMER +8%. APAC region declined 28% due to ongoing
changes in our go-to-market strategy.
We launched a modular software solution in the second quarter,
SSH Zero Trust Suite. Based on PrivX technology our Zero Trust
Suite enables our customers to improve their security posture in
intranet, extranet and internet. The Suite integrates SSH's secure
communication products into a passwordless, keyless, and borderless
solution for our IT and OT customers, enhancing it with
quantum-safe capabilities.
We also launched a support service for OpenSSH for
multi-platform SSH environments. With this new offer, customers
benefit from single source support both for Tectia and OpenSSH
products from experienced SSH technical support.
During the quarter Finland joined NATO, which has increased
interest in NQX and Zero Trust Suite. The membership enables us to
achieve NATO compatibility with our offering.
We are working with new partners to grow our business as well as
serve our customers better. Our focus on Zero Trust, Operational
Technology, and Quantum-Safe solutions has allowed us to stay at
the forefront of cybersecurity.
Business outlook for 2023 (unchanged)
Our business transition from license and support to a
recurring-revenue model has continued providing a more stable
revenue base. At the end of 2022, our Annual Recurring Revenue was
EUR 18.4 million (EUR 15.4 million in 2021). Our net sales grew by
21% to EUR 19.3 million in 2022. Going into 2023, we will continue
to focus on increasing the average deal size. We expect net sales
to grow during 2023 compared to 2022. We estimate EBITDA and cash
flow from operating activities to be positive for 2023.
SSH Communications Security will release its Business Review for
the third quarter of the year on October 25, 2023.
SSH will organize a Capital Markets Day for investors, analysts,
and the media on 29 August 2023. Read more at
www.ssh.com/investors
Helsinki, July 20, 2023
SSH Communications Security Corp.
Board of Directors
Teemu Tunkelo
CEO
For further information, please contact:
Teemu Tunkelo, CEO, tel. +41 79 227 8362
Michael Kommonen, CFO, tel. +358 40 183 5836
Distribution:
NASDAQ Helsinki Ltd.
Major media
www.ssh.com
Disclaimer
The contents of this report are provided by SSH Communications
Security and its third-party content providers for your personal
information only and do not constitute an offer or invitation to
purchase any securities nor does this report provide any form of
advice (investment, tax, legal) amounting to investment advice nor
make any recommendations regarding particular investments or
products. SSH Communications Security does not provide investment
advice or recommendations to buy or sell its shares or the shares
of others. If you are interested in investing in SSH Communications
Security, please contact your financial adviser for further details
and information. Past performance of SSH Communications Security
shares is not indicative of future results. EXCEPT AS PROVIDED BY
APPLICABLE COMPULSORY LAW SSH COMMUNICATIONS SECURITY EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE
AVAILABILITY, ACCURACY, OR RELIABILITY OF ANY OF THE CONTENT
PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSED,
OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
Attachment
-- SSH COMMUNICATIONS SECURITY CORPORATION'S INTERIM REPORT, JANUARY 1 --
JUNE 30, 2023
https://ml-eu.globenewswire.com/Resource/Download/04844dda-4205-431f-990b-9d2309db6f6d
(END) Dow Jones Newswires
July 20, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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