Quartix Technologies (QTX) Trading Update summary

Recurring revenue and customer metrics

• Annualised recurring revenue (ARR) grew by £2.7m in the nine months to 30 September 2024, over 60% higher than the same period in 2023, reaching £31.26m, up 11% year-on-year.

• Average revenue per unit (ARPU) decreased marginally by 0.1% on a constant currency basis, a notable improvement over the prior year.

• Customer attrition improved to 13.8% (trailing 12 months), down from 14.0% previously, with reductions in most territories.

• Total subscription base increased by 13% to 292,026 units, and the customer base grew by 10% to 29,302.

• New subscriptions rose 14% to 55,532 units, with a 29% increase in customer acquisition in Q3 compared to the prior year.

Regional performance

• UK saw a 5% ARR increase and 7% growth in the subscription base, with improved customer management.

• France achieved 18% ARR growth and 21% subscription base growth; customer base up 12%.

• USA ARR grew 2%, with customer acquisition rates in Q3 more than doubling versus last year; sales and support capacity is being rebuilt.

• Italy, Spain, and Germany posted strong double-digit growth in all key metrics, with Germany's new installations up 103%.

• Over 40% of revenue now comes from the EU and USA, with continued investment planned in these regions.

Financial outlook and management commentary

• Board remains confident of meeting market expectations for 2024 profit and free cashflow.

• Cash at period-end was £2.3m after dividend and acquisition-related payments.

• Equipment investment for subscription growth impacted free cashflow versus EBITDA.

• Executive Chairman credits renewed focus on core business and management team for strong performance.

• Anticipated costs of closure for Konetik Deutschland GmbH have been provided for.