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Third party research

Qlosr: Solid Q3 delivery - ABG

Qlosr Group

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
Minor estimate revisions
Subscription business performed well...
...despite a challenging market


Q3 results better than expected

Q3 revenue and EBITDA were 6% and 39% above our estimates, respectively. Even though the deviations are seemingly large in relative terms, we note that they are not large in absolute terms. The subscription business is still performing, despite slower momentum in the market. A little more than half (55%) of the revenues were attributable to the subscription business, and the remainder to hardware sales. We surmise that the subscription business earns approximately the same margin as the hardware sales business, despite the migration of revenues from a traditional transaction-based model to a subscription model — an operational change that temporarily reduces margins.