Nordea executed a 556k trade in QPR shares. Only 8 potential sellers, as I understand it.
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QPR interview from a couple of days ago at the Snowflake event in San Francisco.
(144) Process Mining Software Seeks To Achieve Frictionless Business Processes - YouTube
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QPR Strengthens Its Presence in the United States – Daniel Hughes to Lead Business Operations QPR vahvistaa läsnäoloaan Yhdysvalloissa – Daniel Hughes johtamaan liiketoimintaa | Kauppalehti
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Atte and Roni are in pre-party mood (Thursday and Kalle is exciting), as QPR reports its Q2 results on July 19th. 
QPR will report its Q2 results on Friday, July 19th, at approximately 9:00 AM. We expect a slight decrease in revenue due to, among other things, the expiration of contracts for certain old products and the strong weakening of the dollar. With the company’s increased growth investments, we expect the profit level to have weakened and slipped even more clearly into the red. The company is currently investing in growth at the expense of profitability, using funds raised from a share issue, and growth is indeed the most significant value driver for the stock. Therefore, in the report, we will pay particular attention to the development of the sales outlook.
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Here are QPR’s Q2 figures relative to forecasts. Forecasts were slightly missed in terms of both growth and profit. On the positive side, SaaS revenue development remained on the growth side (+4%). Weak cash flow was noticeable, but this is largely explained by changes in working capital, which are often timing-related factors. Guidance remains unchanged, but the earnings trend must turn around in the latter half of the year for the company to achieve its guided positive operating profit (EBITDA).
We will delve into the report’s content in more detail during the day!
| Forecast Table | Q2’24 | Q2’25 | Q2’25e | Q2’25e | Consensus | Difference (%) | 2025e | |||
|---|---|---|---|---|---|---|---|---|---|---|
| MEUR / EUR | Comparison | Actual | Inderes | Consensus | Lowest | Highest | Actual vs. Inderes | Inderes | ||
| Revenue | 1.5 | 1.4 | 1.5 | -5 % | 6.4 | |||||
| EBITDA | 0.2 | -0.2 | -0.1 | -207 % | 0.1 | |||||
| Operating Profit (adj.) | -0.1 | -0.5 | -0.3 | -60 % | -0.8 | |||||
| Operating Profit | -0.1 | -0.5 | -0.3 | -60 % | -0.8 | |||||
| EPS (reported) | 0.00 | -0.02 | -0.01 | -85 % | -0.04 | |||||
| Revenue Growth % | -22.8 % | -6.2 % | -1.5 % | -4.8 pp | -2.6 % | |||||
| Operating Profit % (adj.) | -4.5 % | -33.9 % | -20.1 % | -13.8 pp | -12.3 % | |||||
| Source: Inderes |
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@Atte_Riikola interviewed CEO Heikki Veijola regarding Q2:
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Atte and Roni have prepared a company report on QPR after Q2.
QPR’s Q2 figures were slightly below our forecasts in terms of both growth and earnings. Customer decision-making appears to have slowed down further, which may also delay the payback of increased growth investments. Despite the share price decline, the stock’s valuation remains tight relative to our forecasted combination of growth and profitability. With minor forecast reductions, we revise our target price to EUR 0.70 (previously EUR 0.72) and reiterate our sell recommendation.
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"Daniel Hughes, Director responsible for QPR Software’s North American business, has decided to pursue new opportunities outside the company and is leaving his position immediately.
“It is regrettable that Daniel decided to leave QPR so soon after starting. We wish him all the best and success in his new endeavors,” commented CEO Heikki Veijola."
Manager of the month, as they say in Fingerpori.
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Surprisingly, staff reductions are being planned, even though the focus was supposed to be on growth. Could the reductions be related to software maintenance services, where there was a stronger decline last quarter? In any case, it will be interesting to see how salaries / staff will develop. It seems that soon every other employee will belong to the management team.
“According to preliminary estimates, the planned measures may lead to temporary and indefinite layoffs of personnel. In addition, the measures may lead to the termination of a total of up to five (5) job positions at QPR Software Oyj and QPR Services Oy.” Sisäpiiritieto: QPR Software Oyj suunnittelee henkilöstövähennyksiä ja lomautuksia - Inderes
From 5 people, one could well achieve savings of 550-600 kEUR per year, which would already be quite a significant saving.
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Atte has written his comments on QPR’s new savings plans.
QPR Software announced on Thursday that it plans staff reductions and temporary layoffs due to production-related, financial, and operational restructuring reasons. The aim of these measures is to adapt the operations of the group companies, strengthen profitability and competitiveness, and ensure the company’s future operational capability and growth.
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The Sales Director and a member of the management team had to leave. QPR Software Oyj’s Sales Director Antti Kivalo leaves the company - Inderes He was in the position for about a year. QPR Software Oyj implements staff reductions and layoffs - Inderes Turnover has been high in sales and marketing. What on earth has happened or failed to happen there?
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Unfortunately, this looks like the “beginning of the end”
- The new US leader worked for about a month and then left
- The Sales Director is leaving
- Other staff, excluding financial administration, are partially laid off
It’s hard to see how this can be turned into a growth company. Perhaps the question is more about whether anyone is interested in buying.
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At least there’s a guy at the helm of the board (Pertti Ervi) who can sell this if the owners’ will allows it. (I don’t own any shares)
I brazenly quote my own writing from 2.5 years ago. The guess was accurate, and Finnish public administration software subcontracting, if not sinking, at least stumbled.
QPR’s product is not a “must-have” in daily operations; rather, it supports process development. Such products are the first to be crossed off, and they are not easily acquired in this situation. I believe the same sentiment prevails throughout Finland.
Cutting QPR’s products does not bring significant savings, but in a SaaS model, these lines can be said goodbye to faster. International sales cannot compensate for domestic attrition and sales stagnation.
In the longer term, the main owners must carefully consider how to revive the business for growth. The industry is difficult, and if one considers machine learning, mammoths like Celonis benefit from an abundance of material. It doesn’t take a genius to see AI models (other than language models) suggesting process changes and analyzing deviations from the agreed standard model.
It might be my own narrow-mindedness, but with the current trend, we hope for the domestic economy to turn to growth, and especially for the public sector to find at least one leg of its buying pants. Will money and faith run out before the turnaround?
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A significantly larger partnership began at the San Francisco event.
I thought for a long time about how appropriate it is for me to write about this, but I’m writing it anyway. I myself work for a company that is a QPR customer. Without mincing words, I dare say that QPR’s competitors are significantly further ahead in software development. QPR is an unfortunate example of a company that, in my opinion, has not made the conversion during technological disruptions, but rather develops new things on top of old. To my knowledge, development resources are also scarce, which makes product development slow. I could imagine that external recruits coming from other circles quickly realize that the company’s chances of competing in an increasingly tough and accelerating pace are difficult. Having worked with product development in quite a few tech companies, I’ve sometimes been breathless at the speed with which the best ones roll out features. Then there are companies whose legacy product itself limits the pace of development and, at worst, even recruitment, as developers don’t want to join a company where coding, building, testing, and releases are not implemented modernly. An American sales director might understand a surprising amount about this and ponder what a heavy burden lies ahead if sales and product development don’t work in sync.
This doesn’t mean that the company or its products are inherently bad. I’m just saying that I also look at them against competitors as a user, and I do notice how big players, such as SAP (Signavio) or similar, play at a different pace in the same field.
This is sad in that without internationally sustainable products, we also won’t get growing software companies emerging from Finland. Companies like QPR would specifically need a boost in product development resources. When reading about the co-determination negotiations, the first thought that comes to mind is that hopefully these aren’t cuts to product development, but then again, they shouldn’t be reduced from sales either.
I only wish QPR well, but I myself will not get involved in their case unless I, as a user, see changes in their solutions.
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QPR: A fresh, updated, comprehensive report would be available:
Today, the plan is also to go on video to open up thoughts about the company. I could write a few things here already before that, related to previous messages.
This certainly looked peculiar from the outside, but behind it was a perfectly human factor. QPR’s own original plans possibly included hiring a North American lead during the next year. However, this experienced individual had contacted them himself and expressed interest in joining, as he saw QPR’s Snowflake angle as promising. Nevertheless, soon after starting work, he was offered a position with significantly broader responsibility and considerably higher compensation from another company in the industry. It is understandable, in itself, that a quick change in career plans would be made at this point. This story, however, partly highlights the fact that QPR’s competitive position is tough among large players whose significant resources enable various investments in product development and sales.
QPR itself has stated that SAP’s Signavio is a very strong player in SAP’s own ecosystem. Among other platform providers, Microsoft is also striving to build a stronger position in the market. QPR aims to specialize particularly in the Snowflake ecosystem, and especially there, the company’s software should be efficient and offer cost benefits compared to other players. In Finland, too, I understand that Snowflake customers can be found quite commendably among large companies today, and there could be potential for direct sales in the domestic market.
When selling to large organizations, the company’s small size poses challenges, as it is easier for a large organization to buy from a “familiar company on Gartner’s list” versus a small player. Therefore, it would now be especially important for the company to find good partners who already have strong customer relationships, to whom QPR’s software could then be offered. The company is now actively building this, and I sincerely hope for its success. QPR’s revenue and market value are absolutely so low that achieving strong growth and thus an increase in valuation is not impossible to draw on paper. In the short term, however, growth has been sluggish, and it is regrettable that an organization of just over 30 people still has to make savings, when in an ideal situation, the headcount should be strongly growing with strengthening demand.
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Forbes had released a new list of the largest cloud service companies. Market leader Celonis is at number 12, and the list is interesting otherwise as well.
Forbes Cloud 100 2025 List - Largest Cloud Computing Companies Ranked
Atte and Tomi discussed QPR based on an extensive report.
Topics:
00:00 Introduction
00:19 Pioneer in Process Mining
05:21 Revenue development and phasing out consulting
08:09 SaaS revenue growth
10:30 Competitive product despite limited resources
17:50 Balancing growth and profitability
22:38 Risks keep you on your toes
27:32 Could QPR be an acquisition target?
Here are Ate’s and Roni’s comments on how a Central European financial sector player has chosen the company as its process mining partner and is implementing QPR ProcessAnalyzer software.
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