SSH - Q3 result misses our expectations, guidance unchanged
SSH Q3 result missed our expectations due to lower than expected software fees. As software fees fluctuate between quarters, one should not read to much of this. CEO sees reaching guidance still possible and outlook for 2019 is unchanged; SSH expects double digit percentage growth from software business (software fees, professional services, and recurring revenue) at comparable exchange rates.
- Q3 net sales were EUR 3.6 million (vs. 5.0m our expectation)
- Software fees were EUR 1.3 million (2.4m Evli), Professional services were EUR 0.1 million (0.3m Evli), and Recurring revenue was EUR 2.3 million (2.3m Evli)
- Q3 operating profit was EUR -0.2 million (vs. 0.7m our expectation)
- EPS was -0.01 (vs. 0.01 our estimate)
- Liquid assets were EUR 11.6m (11.2m Q2/19)
- Business outlook for 2019 unchanged: SSH expects double digit percentage growth from software business (software fees, professional services, and recurring revenue) at comparable exchange rates
- CEO comment: “Entering the fourth quarter, our sales pipeline is strong, and we maintain our guidance despite the slightly slower than planned growth in the first nine months of the year. Achieving our full year target, however, requires some key customer wins during Q4.”