Qt Group (QTCOM) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 grew 22.7% year-over-year to EUR 53 million, driven by strong developer license sales and a major North American deal, with a 34.7%–35% EBITDA/EBITA margin and performance above Q1 levels.

• EBITA for Q2 was EUR 18.5 million (up 48.3% year-over-year), with EBITA margin at 34.7%; EBIT for Q2 was EUR 16.5 million (30%–31% margin).

• License sales, especially developer licenses, were robust, with significant contributions from the US and APAC, while Europe remained sluggish; a large North American deal was secured in June.

• QA/testing business continued to grow rapidly, with about one-third of QA revenue now coming from outside the Qt ecosystem.

• Headcount increased by 15% year-over-year, totaling 837 at quarter-end, with ongoing investments in sales, R&D, and strategic areas.

Financial highlights

• Net sales increased 22.7% year-over-year in Q2 2024; license sales and consulting grew 26.2%.

• Q2 EBITDA was EUR 18.5 million (34.7% margin), up by six points year-over-year; EBITA margin reached 34.7% in Q2 2024, up from 28.7% in Q2 2023.

• Net profit for Q2 was EUR 13.3–13.4 million; EPS was EUR 0.53 in Q2 and EUR 0.83 for H1.

• H1 2024 operative cash flow was EUR 27.6–28 million; ending cash balance stood at EUR 40.4 million.

• Interest-bearing liabilities decreased by EUR 16–16.4 million due to loan repayment.

Outlook and guidance

• Full-year 2024 net sales expected to increase 20–30% year-over-year at comparable exchange rates; operating profit margin (EBITA %) forecasted at 25–35%.

• Q3 expected to be seasonally slower due to summer, with Q4 anticipated to be significantly stronger.

• Growth acceleration in H2 expected from both developer and distribution licenses, with large deals and economic improvement as key variables.

• Maintenance revenue expected to return to growth in line with developer license sales by next year.

• Company maintains its previous guidance despite ongoing challenges in Europe.