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liji verimatrix . DRIVING TRUST Verimatrix Announces Third Quarter 2021 Revenue Solid progress in the transition toward recurring subscription and SaaS model • $ 15.7 million revenue in Q3 2021 。 Core software revenue slightly up vs. Q2 2021 , down year - over - year 。 Recurring subscription and SaaS revenue of $ 1.4 million : up 17 % vs. Q2 2021 and up 28 % vs. Q3 2020 。 Recurring revenues¹ of maintenance and subscription down 25 % year - on - year at $ 6.1 million due to the decrease in new perpetual and term licenses 。 Non - recurring revenues of licenses down significantly year - on - year due to unfavorable base effect ( strong one - time license revenues in Q3 2020 ) while the Covid - 19 pandemic impact continues to weigh on BtoB spending and the ability to launch new infrastructure projects • $ 67.9 million revenue for 9 - month 2021 。 Consolidated revenue ( IFRS ) down 4 % year - over - year : core software business down 27 % year- over - year balanced by $ 16.6 million revenue from the NFC patent licensing program 。 Recurring revenues representing 36 % of revenue vs. 34 % for the first 9 months of 2020 。 Recurring subscription and SaaS revenue ( $ 4.0 million ) up 8 % year - on - year Annual Recurring Revenue ( ARR ) ² of SaaS up 35 % year - on - year to $ 6.5 million and up 15 % vs. second quarter , confirming continuous progress in deploying SaaS and subscription - based offerings • Business outlook 。 Ongoing transformation of the company's operations to adapt to the new business and revenue model 。 Ongoing investments in engineering to expand SaaS offerings 。 Continuously growing recurring revenues and subscription - based and SaaS business 。 Objectives : $ 90 million revenue for 2021 - Generating 70 % of recurring revenues in 2024 compared with 36 % in the first 9 months of 2021 ( and 33 % in the first half of the year ) - Aix - en - Provence , France and San Diego , USA , October 20 , 2021 Verimatrix ( Euronext Paris : VMX ) today announced its revenue for the third quarter ended September 30 , 2021 . Amedeo D'Angelo , Chairman and CEO , commented : “ During the third quarter , we executed the implementation of our accelerated shift toward a subscription - based business , including through SaaS offerings . It included further developing the go - to - market strategy as well as reviewing organization and expenses to ensure we are spending and investing in alignment with our strategy . At the same time , we continue to expand our cloud - based offerings , as illustrated with the release of the Verimatrix Multi- DRM Core service earlier in 2021. Verimatrix is experiencing continuous growth of its SaaS business , as illustrated with the sequential growth of the ARR , even though products and offerings have not yet been changed to be subscription - only and " cloud first . " This growth should be further supported by new SaaS products going live throughout 2022. Additionally , the shift in our contract models toward full on- premises subscriptions starting beginning of 2022 will add to this positive trend and is expected to positively impact our ARR in 2022 and beyond . " Amedeo D'Angelo continued , “ Verimatrix reaffirms that this ongoing shift to a recurring revenue model , depsite how it mechanically affects recognition of revenues for the rest of 2021 and in 2022 , stands as 1 Recurring revenues comprise maintenance and support fees and subscription fees ( of SaaS and non - SaaS implementations ) ; they exclude revenue from royalties . 2 For definition , see " Supplementary non - IFRS financial information " at the end of the press release .