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Solid performance for the year 2022:
Net sales grew by 21%, EBITDA margin 14%, operating cash flow EUR 3 million

October–December 2022:

  • Net sales decreased by 2.6% to EUR 5.8 million (EUR 6.0 million)
  • EBITDA was EUR 1.2 million (EUR 1.4 million), 20.7% of net sales
  • Operating profit was EUR 0.4 million (EUR 0.7 million), 7.0% of net sales
  • Earnings per share was EUR -0.00 (EUR 0.00)

January–December 2022:

  • Net sales increased by 21.1% to EUR 19.3 million (EUR 15.9 million)
  • EBITDA was EUR 2.7 million (EUR 1.1 million), 13.9% of net sales
  • Operating loss was EUR -0.4 million (EUR -1.5 million), -2.3% of net sales
  • Deferred revenue increased by 57% to EUR 14.1 million (EUR 9.0 million)
  • Earnings per share was EUR -0.05 (EUR -0.10)

Cash flow from operating activities improved by EUR 0.2 million to EUR 3.0 million (EUR 2.8 million). The equity ratio was 46.1% (44.6%). Liquid assets decreased by EUR 2.5 million to EUR 5.7 million (EUR 8.2 million).

Business outlook for 2023

Our business transition from license and support to a recurring-revenue model has continued providing a more stable revenue base. At the end of 2022, our Annual Recurring Revenue was EUR 18.4 million (EUR 15.4 million in 2021). Our net sales grew by 21% to EUR 19.3 million in 2022. Going into 2023, we will continue to focus on increasing the average deal size. We expect net sales to grow during 2023 compared to 2022. We estimate EBITDA and cash flow from operating activities to be positive for 2023.

The complete financial statements release is attached to this release (pdf) and is also available on our website

KEY FIGURES            
EUR million 10–12/2022 10–12/2021 Change % 1–12/2022 1–12/2021 Change %
Net sales 5.8 6.0 -2.6 19.3 15.9 21.1
EBITDA 1.2 1.4 -13.5 2.7 1.1 138.7
% of net sales 20.7 23.3 -11.2 13.9 7.0 97.2
Operating profit/loss 0.4 0.7 -38.1 -0.4 -1.5 71.1
% of net sales 7.0 11.0 -36.5 -2.3 -9.6 76.1
Profit/loss before taxes 0.0 0.7 -100.0 -0.7 -1.8 62.0
Profit/loss 0.2 0.4 51.3 -0.6 -2.3 74.3
Return on equity, %       5.2 -22.6 52.3
Return on investment, %       4.7 -14.2 36.0
Liquid assets       5.7 8.2 -30.3
Gearing (%)       -27.9 -39.8 25.7
Equity ratio (%)       46.1 44.6 -2.7
Earnings per share, EUR 0.00 0.00   -0.05 -0.10 47.2
Shareholders’ equity per share, EUR 0.29 0.30 -1.6 0.28 0.31 -8.7
Recurring revenue, ARR       18.4 15.4 19.4
Subscription revenue, ARR       9.9 7.3 35.8
Invoicing 11.2 7.6 46.3 24.2 15.1 60.3
Deferred revenues       14.1 9.0 56.7
Current       10.6 7.8 35.8
Non-current       3.5 1.2 190.5

SSH Communications Security provides alternative performance measures which are not defined by IFRS standards. Alternative performance measures should not be considered substitutes for performance measures in accordance with the IFRS. The alternative performance measures are:
EBITDA = Operating profit/loss + depreciation and amortization.
Recurring Revenue, ARR: Subscription + maintenance revenue at the end of the last month of the reported period multiplied by 12.
Subscription ARR: Subscription revenue in the last month of a reported period multiplied by 12.
Deferred Revenue: Non-recognized revenues from invoiced maintenance and subscription sales.


Dear customers, shareholders, partners, and colleagues,

SSH achieved solid progress during 2022. Net sales grew by 21% to EUR 19.3 million, and EBITDA grew by 139% to EUR 2.7 million, representing 14% of net sales. The fourth quarter sales of EUR 5.8 million (EUR 6.0 million in Q4/2021) almost reached the previous year’s level, which included significant license sales.

We have continued on a successful journey of selling innovative and future-proof technologies to major global corporations, increasingly through a subscription model. Deferred revenue increased strongly by 57% to EUR 14.1 million, driven by several major multi-year subscription and maintenance contracts. Subscription Annual Recurring Revenue grew by 36% to EUR 9.9 million, while Total Annual Recurring Revenue, also including maintenance revenues, grew by 19%, reaching EUR 18.4 million.

Operating cash flow was EUR 3.0 million for the year, while cash position decreased due to Deltagon installment and financing costs. We continued to invest in long-term growth, including R&D, sales and marketing, and innovation with key customers, and we remain well-prepared for the future.

SSH won several new customers over the last quarter. Privileged access management solution PrivX gained multiple Managed Service Providers (MSPs) and Operational Technology (OT) customers, and a major Fortune 500 global financial services institution expanded the use of Universal SSH Key Manager to cover their entire corporate network. These wins demonstrate technological excellence as well as an outstanding service level in our professional services and support.

In the fourth quarter, PrivX subscription revenue grew by 96% compared to Q4 2021. We added several new features to our passwordless PAM solution, PrivX, such as real-time connection monitoring, post-quantum cryptography algorithms, and user and behavior analytics. These advancements ensure that PrivX continues to have the most attractive total cost of ownership thanks to its straightforward implementation and broad set of features.

Additionally, as quantum computing becomes a reality, we continue to lead the way in developing post-quantum-safe solutions. In November, we launched the world’s first quantum-safe data communications software for mainframes by upgrading Tectia SSH Server for IBM z/OS with quantum-safe capabilities, and we are updating the rest of our solutions to include post-quantum encryption. The NQX encryption solution also continued its quarterly revenue growth by winning public and private sector customers.

Our commitment to providing winning solutions for digital communications between systems, applications, and the people operating them remains unchanged while improving financial performance. I would like to thank all members of SSH and partners for contributing to our all-hands-on-deck approach, delivering outstanding achievements in 2022, and establishing a great base to build upon in 2023.

The complete financial statements release is attached to this release (pdf) and is also available on our website.


During 2023, SSH Communications Security Corporation publishes the following financial information:

  • FY 2022 Financial Statements Bulletin: February 23, 2023
  • FY 2022 Annual Report: released during Week 11
  • Business Review, January–March (Q1): April 26, 2023
  • Half-year report, January–June (Q2): July 20, 2023
  • Business Review, January–September (Q3): October 25, 2023

SSH Communications Security Corporation’s Annual General Meeting is planned for Friday, March 24, 2023, in Helsinki, Finland. The invitation will be published later.

SSH Communications Security follows a silent period starting 30 days before the publication of its financial information.

Helsinki, February 23, 2023


Board of Directors

Teemu Tunkelo

For further information, please contact:
Teemu Tunkelo, CEO tel. +41 79 227 8362

NASDAQ Helsinki Ltd.
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