QPR Software Interim Report January – September 2020

QPR SOFTWARE STOCK EXCHANGE RELEASE, October 27, 2020 AT 9.00 AM

Software license and maintenance net sales decreased, cloud services and consulting net sales increased

July - September 2020

• Net sales amounted to EUR 1,801 thousand (July-September 2019: 1,981).
• Net sales decreased 9 % due to a decline in software license and maintenance services sales. During the coronavirus pandemic, sales cycles for new software deals have been significantly longer than usually and have not yet been normalized.
• Cloud services and consulting net sales increased.
• EBITDA was EUR -109 thousand (188).
• Operating result (EBIT) amounted to EUR -413 thousand (-119). The decrease in operating result was due to decrease in net sales, as well as outlays in growth business areas.
• Result for the quarter EUR -345 thousand (-85).
  

January - September 2020

• Net sales amounted to EUR 6,630 thousand (January-September 2019: 7,015).
• Net sales decreased 5 % due to a decline in software license and maintenance services sales.
• Cloud services and consulting net sales increased.
  
• EBITDA was EUR 221 thousand (838).
• Operating result (EBIT) amounted to EUR -752 thousand (-90). The decrease in operating result was due to decrease in net sales, as well as outlays in growth business areas.
• Result for the quarter EUR -665 thousand (-42).
• Earnings per share EUR -0.055 (-0.004).
  
  

Business operations

QPR Software´s mission is to make customers agile and efficient in their operations. We innovate, develop, and sell software aimed at analyzing, monitoring, and modeling operations in organizations. Furthermore, we offer customers a variety of consulting services.

OUTLOOK

Operating environment and market outlook

In recent years, QPR Software has made significant investments in developing the Company´s process mining software, as well as in renewing the user interfaces of its software products. The Company estimates that the demand for process mining software and related services will continue to grow rapidly over the course of 2020.

In developed markets, we expect the competition for process and enterprise architecture modeling software, as well as for performance management software to remain tight. However, there is still growth potential for these products in emerging markets, especially for performance management software.

Outlook for 2020

QPR issued a profit warning on October 14th and revised its net sales forecast, which was issued in February 2020. After the update of outlook, the Company estimates its net sales to decrease compared to last year, when it earlier estimated net sales growth (2019: EUR 9,513 thousand).

Profit forecast remained intact and as previously published. Operating result (EBIT) is estimated to be negative (2019: -213 thousand) and EBITDA is expected to be positive (2019: EUR 1,036 thousand).

Mid-term financial targets

The Company´s mid-term target in 2020 – 2022 is to grow net sales by an average of 15 – 20% per annum. The target is mainly based on international net sales growth in process mining, where we target an annual growth of over 50%.

KEY FIGURES