QPR Software (QPR1V) Q4 2024 earnings summary

Executive summary

• SaaS revenue grew 15% and software business 14% year-over-year, while overall net sales declined 12% due to discontinuation of non-core consulting.

• EBITDA margin improved to 15% of net sales, with EBITDA up 838k euros to 1,020k euros year-over-year.

• North American market entry advanced, with new partnerships and a major U.S. financial client win; strong growth also recorded in the Middle East.

• Recurring revenue increased to 73% of total revenue, up from 61% last year.

Financial highlights

• Full-year net sales: 6,614k euros (down 12% year-over-year); Q4 net sales: 1,963k euros (up 23% year-over-year).

• EBITDA: 1,020k euros (15.4% margin), up from 182k euros (2.4%) last year.

• Operating result: -16k euros (improved from -813k euros); Q4 operating profit: 23k euros (from -283k euros).

• Net result: -82k euros (from -924k euros); Q4 net result: 26k euros (from -307k euros).

• Earnings per share: -0.005 euros (from -0.055 euros).

• Cash flow from operations: 806k euros (849k euros last year); free cash flow: 436k euros (108k euros last year).

Outlook and guidance

• 2025 will focus on growth investments, especially in the U.S., Europe, and Middle East, impacting profitability.

• SaaS revenue expected to grow and EBITDA to remain positive despite growth investments.

• Moderate growth expected in H1 2025 due to legacy contract expirations; long sales cycles may cause quarterly fluctuations.

• Process mining market shifting to platform economy; QPR ProcessAnalyzer uniquely positioned on Snowflake Marketplace.