Qoria (QOR) Q1 2025 TU earnings summary

Executive summary

• Achieved record annual recurring revenue (ARR) of over AUD 120 million (up 17% year-on-year) and delivered inaugural free cash flow of AUD 8.5 million, marking a significant financial turnaround.

• Operating cash flow reached $14.6 million, up from $2.1 million year-over-year, with customer receipts of $37.5 million, reflecting disciplined cost management.

• Successfully integrated OctopusBI, expanding into the $3.5 billion US K12 data analytics market and adding immediate ARR.

• Secured a major partnership with Schools Broadband, granting access to 3,000 additional UK schools and 1.5 million students.

• Over 24 million children and 6 million parents use the platforms across 100+ countries, with staff count down 10% year-over-year to 500.

Financial highlights

• Added $5 million of ARR in the education segment during H1, with Qustodio contributing $0.6 million net ARR growth.

• Ended the quarter with $42 million in cash or equivalents and net debt under $10 million, including a $30 million capital raise post-quarter.

• Operating cash flow nearly $15 million; free cash flow at $8.5 million.

• Receipts from customers totaled $37.5 million for the quarter.

• 99% of revenue is recurring, with service margins at 93% and net retention at 110%.

Outlook and guidance

• Expecting ARR growth to continue at 20% and EBITDA margins of 10%-15% for the current financial year, targeting 20% next year.

• December quarter is key for Australia and New Zealand K12 sales, with record pipelines and $9 million weighted pipeline.

• Group expects to remain free cash flow positive and generate 10–15% EBITDA margins for FY2025.

• Cost base expected to remain flat for the next 18-24 months, with only CPI-related increases.

• Strong sales pipeline, with additional contributions from Octopus and Schools Broadband expected in the next quarter.