Sales came in at EUR5.1m, a y/y increase of 4% -5% below our estimate. Subscription sales came in at EUR2m, License Sales were EUR0.1m, and Maintenance sales EUR1.9m. Subscriptions were slightly weaker than our expectations of EUR3.1m and grew 10.9% in the quarter. Subscription ARR was EUR19m (EUR10.8m), growing 3.8% y/y. Recurring revenue, ARR mounted to EUR11.7m (18.3m), up 8.3% y/y. PrivX subscription sales was up by 21.2%.

We stated in our update after the Q1 report that we expect a ramp-up in H2, and we are now even more convinced this will be the case. All organizational changes have been completed, the cost base is under control, and a sales push towards the US paves the way for a strong end to 2024 and into 2025. We anticipate full-year sales of EUR 23m, reflecting 13% growth.

Our Base Case is EUR1.8 (1.8) per share, with a Bear Case of EUR0.9 (1) and a Bull Case of EUR3.1 (3.4), implying a 36% upside to Base Case. The stock is trading at EV/Sales of 1.8x next year, and EV/Ebitda 14x, roughly 50% discount to peers. We still argue that SSH should be seen as the most stable and predictable company within the Nordic cybersecurity sector due to its robust subscription revenue model.