- HUB Security (HUBC, Financial) saw a revenue decline to $13.8 million in H2 2024, down from $17.6 million in H2 2023 due to strategic exits from lower-margin segments.
- Gross margin improved significantly, reaching 25.6% compared to 15.4% in the previous year, highlighting HUBC's strategic focus on higher-margin offerings.
- The company secured a €20 million contract with Cassa di Risparmio della Repubblica di San Marino and implemented its Secured Data Fabric for a major European bank managing €900 billion in assets.
HUB Security Ltd. (HUBC), a leader in confidential computing and data security solutions, announced its financial results for the second half of 2024, reflecting a strategic pivot towards more profitable business segments. The company reported revenues of $13.8 million, a 21.6% decrease from $17.6 million in the second half of 2023, as it exited lower-margin segments to focus on its core, high-value offerings.
Despite the revenue drop, HUBC achieved a notable improvement in its gross margin, which increased to 25.6% from 15.4% year-over-year. This margin expansion underscores the effectiveness of HUBC's strategic realignment, aiming for enhanced profitability and a stronger financial foundation. Operating expenses were reduced by 29%, totaling $14.7 million, contributing to a 38% improvement in operating losses, now standing at $11.1 million.
Key developments in 2024 included securing a €20 million digital banking modernization contract with Cassa di Risparmio della Repubblica di San Marino. Additionally, HUBC implemented its Secured Data Fabric platform for a leading European bank managing over €900 billion in assets, highlighting the company's capacity to provide secure data management solutions for regulated industries.
HUB Security also addressed its financial stability by resolving $17 million in legacy liabilities, securing new financing, and completing a reverse stock split to comply with Nasdaq listing standards. The company's main growth driver remains its Secured Data Fabric platform, which offers advanced encryption and real-time data retrieval, catering to the compliance needs of financial institutions and other regulated sectors.
