Qoria (QOR) Q1 2025 TU earnings summary

Executive summary

• Achieved record annual recurring revenue (ARR) of AUD 120 million, up 17% year-over-year, and delivered inaugural free cash flow of AUD 8.5 million, marking a significant financial turnaround.

• Operating cash flow reached $14.6 million, up from $2.1 million year-over-year, with customer receipts of $37.5 million, up 25% year-over-year.

• Successfully integrated OctopusBI, expanding into the $3.5 billion US K12 data analytics market and generating immediate ARR uplift.

• Secured a major partnership with Schools Broadband, granting access to 3,000 additional UK schools and 1.5 million students.

• Over 24 million children and 6 million parents use the platforms across 100+ countries, with staff count down 10% year-over-year to 500.

Financial highlights

• Added $5 million of ARR in the education segment during H1, with gross K12 ARR growth of $5 million in the quarter; Qustodio contributed $0.6 million net ARR growth.

• Ended the quarter with $42 million in cash/cash equivalents and net debt under $10 million; cash and equivalents increased to $18.6 million at quarter end.

• Operating cash flow nearly $15 million; free cash flow at $8.5 million; adjusted free cash flow $8.4 million.

• Direct costs down 22% year-over-year despite adding 2 million students; staff costs up 6% sequentially but 4% lower year-over-year.

• 99% of revenue is recurring, with service margins at 93%, net retention 110%, and no bad debt.

Outlook and guidance

• Expecting ARR growth to continue at 20% and EBITDA margins of 10%-15% for the current financial year, targeting 20% next year.

• December quarter is key for Australia and New Zealand K12 sales, with record pipelines and $9 million weighted pipeline.

• Group expects to remain free cash flow positive and generate 10–15% EBITDA margins for FY2025.

• Major product launches and feature expansions planned for Qustodio and Community in the coming months.

• Qustodio business projected to maintain 15%-20% annual growth.