Quartix Technologies (QTX) H2 2024 earnings summary

Executive summary

• Achieved a turnaround in 2024, reversing prior declines in UK and US customer bases and setting record customer acquisition rates, now exceeding 700 new customers per month, with total new customers reaching 6,863 (+19%).

• Over 300,000 vehicles under subscription, with 60% of customers outside the UK and rapid growth in international markets; fleet subscription base grew 13% to 300,168 units.

• Achieved record growth in annualised recurring revenue (ARR), up GBP 3.5 million (+12.2%) year-over-year, 68% higher than 2023.

• Refocused on core telematics business after liquidating the loss-making Konetik subsidiary and implemented a French upgrade program.

• Substantial reductions in overheads and resolution of prior year issues contributed to improved profitability.

Financial highlights

• Annualised Recurring Revenue (ARR) increased by a record GBP 3.5 million in 2024, reaching GBP 32.2 million (12.2% year-over-year growth).

• Revenue rose 8.4% to GBP 32.4 million; operating profit (adjusted for exceptional costs) up 25% to GBP 6.3 million; EPS at 9.85p versus a loss last year.

• Adjusted EBITDA rose 21% to GBP 6.5 million; gross margin improved to 69% from 57% year-over-year.

• Free cash flow nearly doubled to GBP 2.6 million; underlying cash flow before exceptional items was around GBP 4.5 million.

• Net revenue retention improved to 95.7%, up 2.7 percentage points from 2023.

Outlook and guidance

• Strong start to 2025 with record new monthly subscriptions (over 8,000 vehicles in January) and installations significantly ahead in the first two months.

• Upgraded financial outlook for 2025, with ARR growth target set at over GBP 3.5 million and continued focus on growth in six target markets.

• Ongoing pricing adjustments and increased price indexation to address inflationary pressures.