Total Revenue

–2.8% (from $62.93M to $61.17M)

Total revenue declined slightly as gains in Digital Agreements revenue were partially offset by declines in the Security Solutions segment, highlighting the overall impact of the company’s strategic shift toward subscription offerings at the expense of hardware and associated services " " " " versus. " "

Digital Agreements Revenue

+8% (from $14.51M to $15.71M)

Digital Agreements revenue increased due to growing cloud subscription revenue, expansion of renewal contracts, and the strategic relocation of identity verification products into the unit, reflecting a continued emphasis on digital, SaaS-based solutions compared to the previous period " " " " versus. " "

Security Solutions Overall

–6.2% (from $48.42M to $45.46M)

Security Solutions revenue dropped mainly because of a significant decline in hardware, Maintenance & Support, and Professional Services revenues; however, this drop was partially mitigated by a strong boost in subscription revenue, indicating a continuing transition away from legacy revenue streams that dominated in the past period " " " " versus. " "

Security Solutions – Subscription Revenue

+32% (from $27.30M to $36.12M)

Subscription revenue surged as existing customer adoption accelerated, conversions from legacy perpetual contracts boosted pricing, and the focus on software-based solutions became increasingly dominant compared to the previous quarter, supporting the move to a more profitable subscription model " versus. " "

Security Solutions – Maintenance & Support

–15% (to $9.63M)

Maintenance & Support revenue declined in line with the deliberate transition from legacy perpetual maintenance contracts to subscription licenses, reflecting ongoing strategic adjustments that resulted in lower recurring revenue from maintenance services compared to the previous period " versus. " "

Security Solutions – Professional Services

–40% (to $0.98M)

Professional Services revenue fell sharply, driven by lower per-unit contributions from bundled perpetual software licenses and hardware-related services, which had a more significant role in the prior period " versus. " "

Security Solutions – Hardware Products

–36% (to $14.44M)

Hardware revenue declined markedly due to reduced hardware volumes sold and a strategic shift away from hardware-centric products in favor of higher-margin, software-based offerings, contrasting with previous periods where hardware contributed more significantly " versus. " "

EMEA Revenue

–5.9% (from $30.98M to $29.18M)

EMEA revenue contracted as a result of lower hardware volumes and the impact of end-of-life products, reflecting softer demand in the region compared to the previous period. " " "

APAC Revenue

–9.1% (from $10.72M to $9.74M)

APAC revenue slipped primarily due to decreased hardware sales, which contrasts with earlier periods where hardware and increased average selling prices had driven stronger revenue growth. " " "

Americas Revenue

+4.8% (from $21.26M to $22.25M)

Americas revenue grew owing to stronger Digital Agreements performance, which compensated for lower hardware revenue, highlighting region-specific success in digital solution adoption relative to Q4 2023 " " " versus. " " "

Revenue Guidance

FY 2024

$238M to $246M "

$238M to $242M "

lowered

ARR Guidance

FY 2024

no prior guidance

$166M to $170M "

no prior guidance

Adjusted EBITDA

FY 2024

$55M to $59M "

$65M to $67M "

raised

Net Retention Rate (NRR)

FY 2025

no prior guidance

106% to 108% "

no prior guidance

ARR Growth

FY 2025

no prior guidance

10% "

no prior guidance

Total Revenue Growth

FY 2025

no prior guidance

2% "

no prior guidance

Hardware Revenue Decline

FY 2025

no prior guidance

8% year-over-year "

no prior guidance

Subscription Revenue Growth

FY 2025

no prior guidance

Double-digit growth "

no prior guidance

Cash Flow Generation

FY 2025

no prior guidance

Modest improvement " "

no prior guidance

Adjusted EBITDA

FY 2025

no prior guidance

Modest increases "

no prior guidance

End-of-Life Products Impact

FY 2025

no prior guidance

Higher revenue impact "

no prior guidance

Foreign Exchange (FX) Impact

FY 2025

no prior guidance

Factored into guidance (≈40% of revenue in euros; exchange rate shifts could impact revenue growth by a couple of percentage points) " "

no prior guidance

Recurring Revenue Growth & Subscription Transition

Q3, Q2, and Q1 earnings consistently highlighted ARR growth, strong subscription revenue increases, and the strategic transition from perpetual models to SaaS/subscription licenses. " " "

Q4 continued to emphasize strong recurring revenue growth with explicit metrics (e.g., ARR grew 8.5% to $168 million, subscription revenue up over 30%, transitioning to SaaS/term licenses). " " "

Consistent and positive. The focus remains on robust subscription revenue growth and a smooth transition to higher-margin SaaS models.

Operational Efficiency, Cost Management & Margin Expansion

Across Q3, Q2, and Q1, discussions centered on cost reduction, restructuring activities, and improvements in both gross and operating margins, with detailed references to EBITDA and cash flow improvements. " " "

Q4 reported further improvements with initiatives like restructuring, cost savings, and better product mix leading to a gross margin of 75% and higher segment-level margins. " " " "

Steady improvement. Continued positive sentiment with ongoing cost efficiencies and margin expansion across all periods.

Declining Hardware Revenue

In Q3, Q2, and Q1, there were clear mentions of a decline in hardware revenue (e.g., DIGIPASS token declines, seasonal effects, and a long-term shift to software) with explanations on strategic transitions. " " "

Q4 reaffirmed the long-term decline with hardware revenue down by 36% in Q4 and expectations for continued declines in 2025, while emphasizing the shift to higher‐margin software solutions. " " "

Consistently negative. The long-term decline in hardware revenue is an ongoing challenge, with the strategy to mitigate this by focusing on software and subscription offerings.

Currency Headwinds & FX Exposure

Q3, Q2, and Q1 earnings calls did not mention or provide details on FX exposure or currency headwinds.

In Q4, detailed commentary was introduced regarding the impact of the euro-dollar exchange rate (noting a roughly $5 million revenue impact) and a more cautious revenue guidance for 2025 because 40% of revenue is in euros. " "

Newly emerging. This is a new topic in Q4 reflecting evolving concerns about FX fluctuations that were not previously discussed.

Customer Retention, Acquisition, and Churn Dynamics

Each of Q3, Q2, and Q1 included detailed discussion on NRR, new logo acquisition, and churn dynamics stemming from end-of-life products and transitions, with steady NRRs in the 106–112% range. " " "

Q4 maintained a focus on customer metrics by reporting an NRR of 106%, improved on-time renewals, and noting churn impacts from end-of-life products, with new logo growth concentrated in Digital Agreements and channel initiatives in workforce authentication. " " "

Steady but nuanced. Overall strong retention with consistent challenges from legacy product churn, balanced by ongoing acquisition efforts and a focus on expansion.

Strategic Partner Expansion & Diversified Product Portfolio

This topic was not discussed in Q1 and Q2. However, in Q3 there was significant discussion regarding channel partner growth and product portfolio adjustments (e.g., relocating identity verification products). " " "

In Q4, there was further emphasis on channel partner expansion for workforce authentication and subtle references to product portfolio adjustments, though not explicitly diversified, building on the Q3 narrative. " " "

Emerging focus. While absent in early quarters, discussions in Q3 and Q4 indicate a growing strategic emphasis on expanding through partners and refining the product mix.

Pipeline Visibility & Demand Uncertainty

Q3 and Q2 (and to a lesser degree Q1) contained detailed analysis on pipeline visibility, particularly for hardware revenue, seasonal booking challenges, and demand uncertainty, with candid remarks on the difficulty of separating demand from execution. " " "

Q4 did not feature specific commentary on pipeline visibility or demand uncertainty, with discussions shifting more toward revenue outcomes and strategic guidance rather than detailed pipeline metrics.

Diminished discussion. Previously a significant focus, conversation on pipeline visibility and demand uncertainty has notably decreased in Q4, suggesting either stabilization or a change in focus.

Macro Environment & Regional Performance

Q3, Q2, and Q1 provided extensive commentary on macro conditions and regional performance, including detailed revenue mixes by region and qualitative assessments of economic conditions in Europe, APAC, and North America. " " "

Q4 focused primarily on providing updated revenue mix by region (EMEA, Americas, Asia Pacific) with less qualitative discussion of the overall macro environment compared to earlier periods. "

Reduced emphasis. While regional performance remains a reporting element in Q4, broader macro environment commentary is less prominent, shifting the focus toward updated quantitative mixes over qualitative macro insights.