Q-Free: Fourth quarter 2020 and preliminary FY 2020 results – introducing 2025 ambitions

(Oslo, 12 February 2021) Q-Free ASA (Q-Free, OSE: QFR) reported revenues in the fourth quarter 2020 of NOK 254.7 million (245.7) and an EBITDA of NOK 25.3 million (10.5), in addition to a strong cash flow and a backlog exceeding NOK 1 billion. The company has a positive outlook for 2021 and today outlines its 2025 ambitions of NOK 1.3-1.5 billion in revenues and an EBITDA margin in the 15-20 percent range.

“Q-Free delivered a solid quarter with revenue growth, significantly improved profitability, and a strong cash flow from operations. We enter 2021 with solid market momentum, several key contracts secured, and an order backlog exceeding 1 billion NOK. The recent contract wins are a testament to Q-Free’s increased competitiveness, and new technology advances also enable us to scale our solutions more cost-effectively and convert project-based sales to recurring sales models,” says Håkon Volldal, President and CEO of Q-Free.

Q-Free had revenues of NOK 254.7 million in the fourth quarter 2020, up from NOK 245.7 million in the corresponding quarter in 2019, while EBITDA ended at NOK 25.3 million (10.5). Following impairments due to reduction in parking intangibles given recent market value indications, the EBIT was minus 12.9 million in the period (-61.9). The cash flow from operations was NOK 30.9 million and the company ended 2020 with a cash balance of NOK 75.0 million and total liquidity reserves of NOK 175 million.

“Q-Free has sufficient funding to manage its debt and finance its ambitious growth plans. The ongoing conversion of big parts of the convertible bond to equity, will further strengthen Q-Free’s capital structure and reduce its debt obligations,” Volldal adds.

Q-Free had an orderbook of NOK 1.1 billion in addition to awarded, but not yet signed, contracts of NOK 400 million. Based on higher anticipated revenues, a solid gross margin structure, and reduced operational expenses, the profitability is expected to remain solid in the coming quarters.

“Q-Free targets double-digit revenue growth in 2021 with almost 40 percent recurring revenues. An increasing share of revenues is coming from high-margin software services and Q-Free will continue to shift the business towards recurring SaaS-revenues and to continue the margin expansion. The goal for 2021 is to achieve an EBITDA margin above 10 percent,” Volldal says.

Furthermore, Q-Free today outlines its 2025 ambitions of NOK 1.3-1.5 billion in revenues and an EBITDA margin in the 15-20 percent range.

“The company is exposed to an industry with favorable industry trends, has an increasing base of recurring revenues, and is building leading positions within key technology areas. Consequently, we are targeting an annual revenue growth in excess of 10 percent leading to 2025 revenues of 1.3-1.5 billion NOK. Potential growth from bolt-on acquisitions to strengthen and the scale-up of certain market offerings will come on top,” Volldal concludes.

Q-Free is hosting a presentation of the financial results for the fourth quarter 2020 at 09:00 CET. The presentation can be followed live on:

A recorded version will be available after the webcast has been concluded.

The presentation of the fourth quarter 2020 financial results and the report from the Board of Directors are enclosed.

For further information, please contact:

Håkon Volldal, President & CEO, +47 977 19 973

Trond Christensen, interim CFO, +47 481 02 754

About Q-Free:

Q-Free ASA (OSE: QFR) is a global innovator in intelligent transportation systems that improve traffic flow, road safety, and air quality. With an open, collaborative approach to tolling, traffic and active transportation management, Q-Free works with customers and partners on every continent to digitize infrastructure and overcome modern mobility challenges for the greater good of society.

Headquartered in Trondheim, Norway, Q-Free has annual revenues of approximately 1 billion NOK and employs approximately 380 transportation innovators, experts and enthusiasts. To learn more about how Q-Free is changing the movements of life, visit or Twitter:@Q-FreeASA