QBNK (QBNK) Q3 2024 earnings summary

Executive summary

• Revenue for Jan–Sep 2024 increased 8% year-over-year to 30.3 MSEK, with subscription revenue (ARR) at 34.9 MSEK as of October 2024.

• EBIT improved to -0.8 MSEK from -6.1 MSEK year-over-year; Q3 EBIT was positive at 0.3 MSEK.

• Net result after tax for Jan–Sep was -0.5 MSEK, a significant improvement from -4.8 MSEK last year.

• Cash flow from operations for Jan–Sep was 6.7 MSEK, up from -0.7 MSEK year-over-year.

• Q3 saw continued sales to existing strategic customers and nearly zero churn in the core segment.

Financial highlights

• Q3 2024 revenue was 9.7 MSEK, up 5% year-over-year; EBIT was 0.3 MSEK (margin 3.6%).

• Subscription revenue for Jan–Sep was 26.7 MSEK, up 13% year-over-year; 88% of total revenue.

• Cash and cash equivalents at Sep 30, 2024, were 15.1 MSEK, up from 13.2 MSEK a year earlier.

• Equity at period end was 5.7 MSEK, down from 7.4 MSEK last year; equity ratio 21%.

• No investments in fixed assets during the period.

Outlook and guidance

• Management expects growth in coming quarters, with a clear ambition to achieve full-year profitability in 2025.

• Cost base expected to normalize in Q4, with slightly higher costs than Q3.

• The global DAM market is expected to grow at 15% annually, supporting long-term growth prospects.