Verimatrix Announces Q1 2021 Revenue - Seite 2

First quarter 2021 revenue

Verimatrix revenue was $20.1 million in the first quarter of 2021, stable overall year-on-year.

During the quarter Verimatrix saw a steady flow of business for its conditional access solutions, in particular its VCAS broadcast security for on-premise implementation. The Company also commercially launched six customers on the new Multi-DRM Core cloud native solution which provides a customizable and scalable Digital Rights Management solution with unmatched onboarding speed and security for streaming OTT² providers.

The Company also demonstrated further the multi-market reach of its Application Shielding product line in the quarter by winning new customers across the Mobile Payment, Media & Entertainment and Automotive markets.

Recurring revenues from royalties, maintenance and subscription fees were $11.4 million in the first quarter of 2021 (57% of total revenue). These recurring revenues are down year-over-year due to weak royalty collection from set-top boxes makers in the context of on-going Covid-19 supply-chain and component shortages and retail challenges in certain regions (Latin America notably). However, subscription revenue continued to increase, up 23% vs. Q1 2020, at $1.4million, a progression underpinned by a growing demand for Verimatrix technology.

The Company continued to experience good momentum on subscription-based and SaaS business by signing six new subscription and SaaS contracts during the quarter for a total contract value (TCV) of $2.8 million (up 100% year-over-year). The ARR (Annual Recurring Revenue) of subscription increased by 56% year-over-year to $9.7 million as of March 31, 2021.

Revenue from software licenses and non-recurring services was $8.7 million in the first quarter of 2021, up 41% year-over-year. During the quarter, the Company was able to regain part of the licence orders which had been delayed in the fourth quarter of 2020.

Also, Verimatrix signed new term-license deals with existing customers converting them from a yearly maintenance-only relationship with perpetual license ownership to a multiyear license agreement delivering new versions of its conditional access and DRM software. The aim is to move them to a subscription-based contract at the renewal of their new licenses. This transition will ultimately increase ARR and continue to improve the Company’s revenue mix.