Qt Group (QTCOM) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 grew 22.7% year-over-year to EUR 53–53.3 million, driven by strong developer license sales and a major North American deal, with a 34.7–35% EBITDA/EBITA margin and improved scalability.

• EBITA for Q2 was EUR 18.5–19 million, up 48.3% year-over-year, with EBITA margin at 34.7–35%.

• Headcount increased by 15% year-over-year, with 31 added in Q2, totaling 837 at quarter-end, supporting strategic growth in sales, R&D, and QA.

• Large deals, typically over EUR 5 million, contributed to quarterly fluctuations, with a significant US developer license deal in the large vehicle sector.

• Partnerships with Qualcomm and LG Electronics were announced, expanding reach in industrial IoT and automotive sectors.

Financial highlights

• Q2 2024 EBITDA/EBITA was EUR 18.5–19 million (34.7% margin), up six points year-over-year; H1 EBITDA/EBITA margin was 30%+.

• EBIT for Q2 was EUR 16.5 million (30–31% margin), up EUR 6 million from the previous year; H1 EBIT was EUR 25.5 million (26% margin).

• Net profit for Q2 was EUR 13.3–13.4 million; H1 net profit was EUR 21 million.

• EPS was EUR 0.53 in Q2 and EUR 0.83 for H1.

• Operating cash flow for H1 was EUR 27.6–28 million; ending cash increased to EUR 40.4 million.

• Interest-bearing liabilities decreased by EUR 16–16.4 million due to loan repayment.

Outlook and guidance

• Full-year 2024 guidance: net sales growth of 20–30% at comparable exchange rates and operating profit (EBITA) margin of 25–35%.

• Q3 expected to be seasonally slower, with Q4 anticipated to be significantly stronger.

• Growth acceleration in H2 expected from developer and distribution licenses, with large deals and economic improvement as key variables.

• Maintenance revenue expected to return to growth in line with developer license sales by next year.

• Long-term growth prospects remain strong, driven by demand for software development and QA tools.