SSH Communications Security Corporation | Stock Exchange Release | February 14, 2025 at 09:00:00 EET
Net sales increased by 23%, EBIT positive during Q4
October-December 2024:
• Net sales totaled EUR 6.8 million (5.5 million)
• EBITDA was EUR 1.7 million (0.5 million)
• Operating profit (EBIT) was EUR 0.8 million (-0.4 million)
• Profit for the period was EUR 0.5 million (-0.4 million¹)
• Earnings per share was EUR -0.00 (EUR -0.02¹)
January-December 2024:
• Net sales totaled EUR 22.2 million (20.3 million)
• EBITDA was EUR 3.4 million (1.8 million)
• Operating loss was EUR -0.3 million (-1.6 million)
• Loss for the period was EUR -0.8 million (-2.0 million¹)
• Earnings per share was EUR -0.10 (EUR -0.10¹)
Operating cash flow was EUR 2.7 million (EUR 3.2 million). The equity ratio was 52.8% (50.0%¹). Liquid assets including short-term liquid investments were EUR 2.9 million (EUR 3.7 million).
1) The comparison period 2023 has been corrected according to IAS 8 due to adjusting interest expenses and deferred revenue. The decrease in interest cost was EUR 0.1 million for Q4 2023 and EUR 0.3 million for the full year 2023. Interest costs are included in financial items and the correction of the error affects profit/loss before taxes and net profit for the year, and any key figures derived from net profit. The correction of the error affects deferred revenue increasing it by EUR 0.3 million in the end of 2023.
Key Figures
| EUR million | 10-12/2024 | 10-12/2023 | Change % | 1-12/2024 | 1-12/2023 | Change % |
| Net sales | 6.8 | 5.5 | 23.1 | 22.2 | 20.3 | 9.0 |
| EBITDA | 1.7 | 0.5 | 3.4 | 1.8 | 88.4 | |
| % of net sales | 25.3 | 9.6 | 15.5 | 8.9 | ||
| Operating profit/loss | 0.8 | -0.4 | -0.3 | -1.6 | 84.1 | |
| % of net sales | 12.2 | -6.8 | -1.2 | -8.1 | ||
| Profit/loss before taxes¹ | 0.9 | -0.4 | -0.6 | -2.1 | 71.8 | |
| Profit/loss¹ | 0.5 | -0.4 | -0.8 | -2.0 | 59.9 | |
| Return on equity, %¹ | -8.7% | -19.4% | ||||
| Return on investment, %¹ | -5.1% | -16.4% | ||||
| Liquid assets | 2.9 | 2.2 | 35.8 | |||
| Short-term liquid investments | 1.5 | |||||
| Gearing (%)¹ | -8.9% | 2.9% | ||||
| Equity ratio (%)¹ | 52.8% | 50.0% | ||||
| Earnings per share, EUR¹ | -0.00 | -0.02 | 85.4 | -0.10 | -0.10 | 1.9 |
| Shareholders' equity per share, EUR¹ | 0.23 | 0.25 | -10.6 | |||
| Recurring revenue, ARR | 20.5 | 19.3 | 6.0 | |||
| Subscription revenue, ARR | 12.3 | 11.5 | 7.4 | |||
| Invoicing² | 8.2 | 5.9 | 39.1 | 22.3 | 18.6 | 19.8 |
| Deferred revenue¹ | 13.0 | 12.2 | 6.0 | |||
| Current¹ | 10.5 | 9.8 | 7.1 | |||
| Non-current | 2.5 | 2.4 | 1.6 |
1) The comparison period 2023 has been corrected according to IAS 8 due to adjusting interest expenses and deferred revenue. The decrease in interest cost was EUR 0.1 million for Q4 2023 and EUR 0.3 million for the full year 2023. Interest costs are included in financial items and the correction of the error affects profit/loss before taxes and net profit for the year, and any key figures derived from net profit. The correction of the error affects deferred revenue increasing it by EUR 0.3 million in the end of 2023.
2) Invoicing number for comparison period 1-12/2023 has been corrected
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.
Invoicing: Invoices sent during the reported period without VAT.
Deferred Revenue: Non-recognized revenue from invoiced maintenance and subscription sales.
The complete financial statements release is attached to this release (pdf) and is also available on our website.
Business outlook for 2025
We expect net sales to grow during 2025 compared to 2024. We estimate EBITDA and cash flow from operating activities to be positive for 2025. At the end of 2024, our Annual Recurring Revenue was EUR 20.5 million (EUR 19.3 million in 2023). Our net sales grew by 9.0% to EUR 22.2 million in 2024, and EBITDA was 3.4 million in 2024.
CEO review
SSH continued solid business growth during Q4 and full year 2024. The fourth quarter revenue grew significantly by 23.1%, reaching EUR 6.8 million (EUR 5.5 million), driven in part by strong license sales. The full year revenue grew by 9.0% to EUR 22.2 million, and EBITDA grew by 88.4% to EUR 3.4 million, representing 15.5% of net sales.
Cash position improved significantly during Q4 compared to Q3 due to strong operational cash flow of EUR 3.2 million. Liquid assets including short-term liquid investments were EUR 2.9 million (EUR 3.7 million).
Subscription sales grew by 7.7% in 2024 totaling EUR 11.9 million with PrivX subscription sales growing 23.2%. License sales grew by 105.2% to EUR 1.7 million in 2024, driven by the cryptographic solution and services announced in February being recognized as revenue during Q4. Total ARR grew by 6.0% to EUR 20.5 million.
We successfully expanded our business in several important growth verticals; defense market, critical infrastructure operators and manufacturing companies (OT).
During the fourth quarter we won several new customers in all regions. In EMEA, we signed an agreement with a leading Nordic energy company for PrivX. The customer sought an IT solution capable of centrally managing critical access at scale across both IT and OT environments. In APAC, a leading regional bank signed a multi-year agreement to expand its use of Tectia and UKM Key Manager in their environment. Additionally, a major Asian gaming giant selected PrivX as its PAM solution to secure access to sensitive intellectual property. In AMER, a global leader in digital payments expanded its use of UKM Key Manager to improve SSH key governance and secure critical transactions. In EMEA, a leading Northern European healthcare provider selected PrivX to strengthen access controls for servers and databases containing sensitive patient data, including medical histories, prescriptions and transcripts of doctor's appointments.
During 2024 we clarified our solution portfolio - Communications Security for Humans, Systems and Networks. New PrivX versions were announced featuring Zero Downtime upgrades and enhanced secrets management. SalaX's Matrix-based Secure Messaging was released to the market. New NQX versions feature certification for security level TL III (confidential information) granted by the Finnish NCSA (National Cyber Security Agency). NQX offers cutting-edge quantum-safe encryption while delivering up to 6x faster throughput than traditional hardware-based encryption solutions - ideal for customers requiring high bandwidth and large data volumes.
The latter half of the year marked a key step in our journey towards accelerating growth and improving profitability with higher efficiency. The main strategic themes of Zero Trust, OT Security and Quantum Safety continue to enable new business opportunities for us. Zero-Trust approach in access control eliminates reusable credentials and their GenAI-fueled phishing attacks. OT in manufacturing companies remains an attractive target for ransomware and extortion and therefore needs improved resilience for operational continuity and better protection. Deploying Quantum-Safe encryption is vital now for securing long-term data against future quantum computers.
As the inventor of SSH Secure Shell, we have been safeguarding the internet for three decades, celebrating our 30th anniversary in 2025. With our Quantum-Safe, crypto-agile solutions, we remain committed to staying at the forefront of securing communications for the decades ahead, in the next era of Quantum Resilience.
During 2025, SSH Communications Security Corporation publishes the following financial information:
- FY 2024 Financial Statements Bulletin: February 14, 2025
- FY 2024 Annual Report: released during Week 11
- Business Review, January-March (Q1): April 29, 2025
- Half-year report, January-June (Q2): July 17, 2025
- Business Review, January-September (Q3): October 23, 2025
SSH Communications Security Corporation's Annual General Meeting is planned for Tuesday, March 26, 2025, in Helsinki, Finland.
Helsinki, February 14, 2025
SSH COMMUNICATIONS SECURITY
Board of Directors
Rami Raulas
CEO
For further information:
Rami Raulas, CEO, tel. +358 50 331 1741, email Rami.Raulas@ssh.com
Michael Kommonen, CFO, tel. +358 40 183 5836, email Michael.Kommonen@ssh.com
Distribution:
Nasdaq Helsinki Ltd.
Major media
www.ssh.com
Disclaimer:
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