(Boursier.com) — The turnover of Verimatrix in the first quarter of 2024 is stable at $14.2 million ($14 million a year earlier). Recurring revenue, however, increased 14% over the period, to $8.5 million. They reached 60% of total turnover this quarter, constantly increasing to move towards the objective previously communicated by Verimatrix of 70% by 2025.
Recurring revenues generated through subscriptions continued to increase to $4.2 million, a strong growth of 31%, compared to $3.2 million in the first quarter of 2023. Recurring revenues from maintenance increased to them stabilized at $4.3 million in the first quarter of 2024.
In accordance with the indications given by the company, the first quarter of 2024 benefits from the signing of major contracts. ARR from subscriptions thus increased significantly by 34% to $16.5 million, compared to $12.3 million as of March 31, 2023 and by 11% compared to the fourth quarter of 2023. Commercial activity was very active in the Latin America region, notably with the signing of a major new subscription contract with a historic Mexican client in the field of video protection (Anti-Piracy).
For 2024, Verimatrix anticipates a stabilization of the Anti-Piracy activity (video content protection software) explained by two ongoing transformations: continued decline in the broadcasting market, partially offset by the growth of OTT, and evolution in course of the sales model transformed into recurring revenue. The Extended Threat Defense (XTD) activity will continue its strong growth, particularly in new market segments such as banking and automobiles. Growth in ARR from subscriptions is expected to exceed 20%.
Verimatrix targets continued improvement in EBITDA through recurring revenue growth across its two businesses and an expense structure
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