QPR Software (QPR1V) Q2 2024 earnings summary

Executive summary

• SaaS and software revenue grew, with the company's turnaround progressing as planned and several new partnerships signed in North America.

• Discontinuation of non-core consulting services led to a decline in total net sales, but recurring revenue proportion increased significantly.

• Cost-saving measures and restructuring have improved profitability metrics, with EBITDA turning positive and operating losses narrowing.

• Expansion in the US and Middle East, with new reseller agreements and increased market activity, especially in the financial sector.

Financial highlights

• Net sales for Jan–Jun 2024 were €3.24M, down 22% year-over-year due to discontinued consulting; recurring revenue rose to 76% of total.

• SaaS net sales grew 15% year-over-year to €1.35M; software net sales up 8%.

• EBITDA for Jan–Jun was €476K (up €504K from prior year); operating loss narrowed to €-34K from €-517K.

• Net result for Jan–Jun was €-74K, a significant improvement from €-579K year-over-year.

• Earnings per share improved to €-0.004 from €-0.036 year-over-year.

Outlook and guidance

• Double-digit SaaS net sales growth expected for 2024, with total software net sales projected to increase.

• Operating result anticipated to improve significantly in 2024 (2023: €-813K).

• Economic recovery, lower interest rates, and normalizing inflation expected to support customer investment decisions in late 2024.