QPR Software expects a loss as expected – considering a subscription issue

Software company QPR Software published its January-March chapter today. The company’s focus has been on strategy reform, so as expected, the report was again a minor win in terms of numbers.

The company itself had forecast that the first quarter of this year would be weaker than in the comparison period in terms of both net sales and profit, which is partly due to the EUR 0.5 million license transaction in the previous year.

QPR’s adjusted operating result in January – March fell from EUR 0.3 million in the comparison period to EUR -0.5 million now, when the next analysis house Inderes expected an adjusted operating result of EUR -0.3 million.

Net sales also fell by 24 per cent from EUR 2.9 million last year to EUR 2.2 million. It expects Inderes to have a turnover of EUR 2.6 million. According to QPR, the SaaS software business grew 8 percent in the first quarter

EBITDA fell from EUR 0.6 million to EUR -0.2 million, with Inderes forecasting zero.

Earnings per share decreased from EUR 0.014 in the comparison period to EUR -0.032. Inderes’ expectation was EUR -0.02.

“New customer acquisition was slow during the first quarter of the year, which is reflected in the decline in new software license sales,” QPR Software CEO Jussi Vasama says in the results release.

“Growth investments launched in line with the company’s new strategy and the cost of collective bargaining weakened profitability in the first quarter.”

Vasama also says that the costs for the first quarter include significant restructuring and development costs, including contract restructuring and strategy work.

Instructions unchanged

The company kept its guidelines unchanged in the earnings announcement. As previously reported, QPR expects its revenue to grow this year, supported by growth in SaaS revenue.

Last year, net sales totaled EUR 9.14 million, and the guidance is based on the company’s increased offer base, continuous customer revenues and the degree of consulting.

The full-year guidance already included a provision, based on which the company expected first-quarter net sales and earnings to be lower than in the comparison period.

“QPR’s net sales and earnings have been on a downward trend for a long time and continued into the first quarter. We are rebuilding the company and the construction work inside the company is well under way, “Jussi Vasama says in a press release.

“We believe that the measures taken will also start to show in the company’s figures towards the end of this year. QPR operates in a favorable growth environment, where both the growing demand for process mining internationally and digitalization in the public and private sectors create new business opportunities. I strongly believe that our growth strategy, announced in March 2022, combined with growth investments, will further enhance the company’s competitiveness in our chosen markets. ”

Subscription under consideration

In connection with its earnings announcement, the company announced that it is exploring the possibility of implementing a rights issue during the second quarter of 2022. The gross amount of funds to be raised in the issue would initially not exceed EUR 3.5 million.

In its financial statement bulletin on 16 February, the company stated that it was seeking authorization from the Annual General Meeting to issue a maximum of 4.5 million new shares in connection with the implementation of the strategy and possible growth investments.

The company’s Board of Directors has further assessed the possibility of issuing shares, and the Annual General Meeting on April 6 has authorized the Board of Directors to issue a maximum of 4.5 million new shares in the share issues.

Decisions on the implementation of a possible share issue and the detailed terms and conditions will be made and announced later, and the implementation of the share issue is uncertain.

According to the company, the main organizer of the possible share issue would be Married Oyj. Acting as legal counsel to the company and the lead arranger Law firm Castrén & Snellman Oy.

By Editor

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