QPR Software (QPR1V) Q3 2024 earnings summary

Executive summary

• SaaS net sales grew 15% year-over-year for both Q3 and the nine-month period, supporting ongoing profitability improvements for the eighth consecutive quarter.

• Overall net sales declined 22% year-over-year due to the discontinuation of non-core consulting services.

• EBITDA improved to €269k in Q3 (+11% YoY) and €745k for Jan–Sept (+532k YoY), with operating losses narrowing significantly.

• Secured a significant contract with a global luxury brand and advanced QPR ProcessAnalyzer as a native app on Snowflake Marketplace.

Financial highlights

• Q3 net sales: €1,409k (-22% YoY); Jan–Sept net sales: €4,651k (-22% YoY).

• Q3 EBITDA: €269k (+11% YoY); Jan–Sept EBITDA: €745k (+532k YoY).

• Q3 operating profit: -€6k (improved by €6k YoY); Jan–Sept operating profit: -€39k (improved by €490k YoY).

• Q3 result: -€33k; Jan–Sept result: -€107k (improved by €510k YoY).

• Q3 cash flow from operations: €34k (vs. -€640k YoY); Jan–Sept: -€226k (vs. €20k YoY).

Outlook and guidance

• Expects double-digit SaaS net sales growth and overall software net sales growth for 2024.

• Anticipates significant improvement in operating result for FY2024 (2023: -€813k).

• Market recovery is slower than anticipated, but investment decisions are expected to accelerate by year-end.