SSH COMMUNICATIONS SECURITY CORPORATION, STOCK EXCHANGE RELEASE, OCTOBER 27, 2022, AT 9:00 A.M EEST
NET SALES INCREASED 17 %, EBITDA POSITIVE
July–September 2022 in short
• Net gross sales totaled EUR 4.6 million (EUR 3.9 million)
• EBITDA was EUR 0.4 million (EUR 0.6 million)
• Operating loss was EUR -0.4 million (EUR -0.3 million)
• Loss for the interval was EUR -0.4 million (EUR -0.3 million)
• Earnings per share was EUR -0.02 (EUR -0.02)
Operating money circulation was EUR -0.5 million (EUR 0.0 million). The fairness ratio was 47.2 % (46.3 %). Liquid property have been EUR 2.7 million (EUR 4.2 million).
| KEY FIGURES | |||||||
| EUR million | 7–9/2022 | 7–9/2021 | Change % | 1–9/2022 | 1–9/2021 | Change % | 1–12/2021 |
| Net gross sales | 4.6 | 3.9 | 17.2 | 13.4 | 9.9 | 35.3 | 15.9 |
| EBITDA | 0.4 | 0.6 | -28.3 | 1.5 | -0.3 | 624.2 | 1.1 |
| % of internet gross sales | 8.6 | 14.0 | -38.8 | 10.9 | -2.8 | 487.3 | 7.0 |
| Operating revenue/loss | -0.4 | -0.3 | -23.0 | -0.9 | -2.2 | 61.1 | -1.5 |
| % of internet gross sales | -8.7 | -8.3 | -5.0 | -6.3 | -22.0 | 71.3 | -9.6 |
| Profit/loss earlier than taxes | -0.4 | -0.4 | 3.7 | -0.7 | -2.5 | 72.7 | -1.8 |
| Profit/loss | -0.4 | -0.3 | -33.4 | -0.8 | -2.7 | 71.1 | -2.3 |
| Return on fairness, % | -7.0 | -27.0 | 73.9 | -22.6 | |||
| Return on funding, % | -4.9 | -18.0 | 72.8 | -14.2 | |||
| Liquid property | 2.7 | 4.2 | -35.3 | 8.2 | |||
| Gearing (%) | -3.8 | -25.8 | 85.2 | -39.8 | |||
| Equity ratio (%) | 47.2 | 46.3 | 2.0 | 44.6 | |||
| Earnings per share, EUR | -0.02 | -0.02 | -13.5 | -0.04 | -0.10 | 61.3 | -0.10 |
| Shareholders’ fairness per share, EUR | 0.28 | 0.30 | -5.2 | 0.26 | 0.30 | -13.1 | 0.31 |
| Recurring income, ARR | 17.6 | 14.5 | 21.0 | 15.4 | |||
| Subscription income, ARR | 9.2 | 6.3 | 46.3 | 7.3 |
SSH Communications Security offers different efficiency measures that aren’t outlined by IFRS requirements. Alternative efficiency measures shouldn’t be thought-about substitutes for efficiency measures in accordance with IFRS. The different efficiency measures are:
EBITDA = Operating revenue/loss + depreciation and amortization
Annual Recurring Revenue: Subscription + upkeep income on the finish of the final month of the reported quarter multiplied by 12.
Subscription ARR (Annual Recurring Revenue): Subscription income within the final month of a reported quarter multiplied by 12. For an exhaustive listing of different efficiency measures and formulation used, check with SSH’s Annual Report.
OUTLOOK
Our present 12 months 2022 steerage stays unchanged:
We proceed our business transition from a license and help mannequin to a recurring-revenue mannequin, which we foresee will present extra steady income in the long run whereas lowering our short-term annual progress charge in comparison with a perpetual license business mannequin. At the tip of 2021, Annual Recurring Revenue was EUR 15.4 million (EUR 8.0 million), which positions us properly for continued progress. We count on internet gross sales to develop throughout 2022 in comparison with 2021. We estimate EBITDA and money circulation from working actions to be optimistic for 2022.
CEO REVIEW
Valued shareholders, clients, companions, and colleagues,
Our progress continued in the course of the third quarter. Net gross sales elevated by 17 %, and EBITDA reached EUR 0.4 million. The barely decrease EBITDA vs. the comparability interval is principally because of the {hardware} element in NQX deliveries recorded as price of products bought. We have efficiently transitioned quite a few our clients into the subscription mannequin by way of the introduction of progressive editions and future-proof applied sciences to our portfolio. Consequently, over 90% of Q3 income is subscription-based.
During the third quarter, we delivered a EUR 2.1 million order positioned in June, and we’re securing the capability to ship additional orders beneath the identical contract. Due to deliveries late within the quarter, the income recognition impact of the order was minor in Q3 with full affect from the beginning of This autumn, extending over a three-year preliminary contract interval.
Our working money circulation was EUR -0.5 million for the quarter, primarily because of the timing of bigger money receipts by a couple of days simply after quarter finish. Operating money circulation and liquid property are anticipated to enhance over the last quarter as the vast majority of our renewal funds, and the cost for the supply of the EUR 2.1 million order might be obtained throughout This autumn.
PrivX achieved vital analyst recognition for the third time
In August, the main European market analyst agency, KuppingerCole, named SSH Communications Security an Overall Leader within the Leadership Compass Report 2022. SSH was chosen as an total chief on the Privileged Access Management (PAM) market and as a frontrunner within the Innovation, Product, Market, and Market Champion classes. SSH’s fastest-growing product, PrivX, carried out alongside world cybersecurity giants, outperforming them, particularly in technological improvement.
NQX began to generate significant revenues
The Finnish National Cyber Security Center (NCSA-FI) safety certification for encryption answer NQX was granted in June, leading to a number of new buyer orders. SSH began deliveries of NQX, the worth of which exceeds EUR 2 million in Q3 over three years. The element availability is nice for NQX, however the world provide and logistic chain challenges leading to lengthy lead occasions might affect future supply occasions.
SSH Deltagon Suite establishes new worldwide companions
SSH Deltagon Suite continued its progress throughout Q3, pushed by our companions within the Nordics. We are working with chosen worldwide companions to ascertain and develop the Suite internationally, particularly within the regulated business market section and the place SSH already has a robust buyer footprint. A brand new consumer interface and an improved consumer expertise for the Suite are in improvement, and we’re excited to launch a brand new model throughout This autumn.
Universal SSH Key Manager (UKM) upgraded with new options
New UKM product launch launched discovery and reporting associated to Quantum preparedness for Tectia Secure Shell merchandise. It additionally provides new choices for locating non-public SSH keys in customized areas and superior alerts administration to concentrate on what issues, keep away from alert fatigue, and enhance information administration. Further, SSHerlock – our discovery and audit device – is now used for self-risk evaluation by our clients and prospects. We count on SSHerlock to open extra alternatives for brand new buyer acquisitions and extra gross sales.
Going Forward
Businesses, governments, and federal organizations have realized the significance of the Zero Trust strategy to cybersecurity. In addition, ever-increasing assaults on society’s crucial infrastructure and the weaponization of operational expertise create a rising want for options like SSH’s Privx OT version. Together with quantum computer-resistant encryption, SSH’s merchandise are confirmed in use and future-proof.
Functionality throughout all 5 product strains has been improved, and funding in product improvement, channel gross sales, and advertising continues. We have strengthened cooperation with our world companions and elevated assets for gross sales by way of associate channels. We can reply to buyer wants for complete options to make sure business continuity and safety from vulnerabilities.
Financial Performance
Net gross sales for the third quarter have been EUR 4.6 million (EUR 3.9 million), a rise of 17 % in comparison with Q3 2021.
EBITDA for Q3 2022 was EUR 0.4 million (EUR 0.6 million).
The working loss was EUR -0.4 million (EUR -0.3 million), and the online loss for the quarter was EUR -0.4 million
(EUR -0.3 million).
Operating money circulation for the quarter was EUR -0.5 million (EUR 0.0 million).
Sales Performance
Sales within the EMEA area elevated 29 % in comparison with Q3 2021. The APAC area’s gross sales grew by 25 % in comparison with Q3 2021, and the AMER area’s gross sales have been flat.
Subscription income grew 35 % in comparison with Q3 2021. PrivX subscription income grew 144 % in comparison with Q3 2021.
During the quarter, recurring income (subscriptions and upkeep) accounted for 93 % of whole income, giving SSH a stable base from which to construct additional progress.
DISCLAIMER
The contents of this report are supplied by SSH Communications Security and its third-party content material suppliers on your private data solely and don’t represent a suggestion or invitation to buy any securities, nor does this report present any type of recommendation (funding, tax, authorized) amounting to an funding recommendation nor make any suggestions concerning explicit investments or merchandise. SSH Communications Security doesn’t present funding recommendation or suggestions to purchase or promote its shares or the shares of others. If you have an interest in investing in SSH Communications Security, please contact your monetary adviser for additional particulars and data. The previous efficiency of SSH Communications Security shares shouldn’t be indicative of future outcomes. 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 PURPOSE.
SSH Communications Security will launch its monetary reporting calendar for 2023 throughout This autumn.
Helsinki, October 27, 2022
SSH COMMUNICATIONS SECURITY
Board of Directors
Teemu Tunkelo
CEO
For additional data, please contact:
Teemu Tunkelo, CEO tel. +41 79 227 8362
Niklas Nordström, CFO tel. +358 50 541 0543
Distribution:
Nasdaq Helsinki Ltd.
Major media
www.ssh.com
