Quarterhill Inc T.QTRH

Questions About QTRH

[AlwaysLong683]

I'm interested in QTRH stock - I like the ITS sector and QRTH has cleaned up its balance sheet nicely after the WiLAN transaction.

There's some info I can't seem to find. Wondering if anyone on this BB can provide it, or better yet, knows where I can locate it.

1) What % of QTRH's Q4 2023 revenues were recurring?

2) Chuck Myers was announced as CEO of QTRH in a PR dated September 5, 2023. I believe he lived in California while holding his previous jobs. Anyone know if he's moved to Toronto (location of QRTH's corporate headquarters) or is he running the company from the west coast? I realize that modern communication technology makes it easier to work remotely, but I prefer a CEO to live in the area where company headquarters is located.

Thanks in advance!

[cabbieJBJ]

QTRH IR can best answer your questions.  But, I'm up early, so I'll pass on what I know. If you read the transcript of the Q4 call, management addressed revenue.  As you know, the backlog of contracted business, which spans many years, was reported at USD $520M in Q4, up $20M from Q3.  The backlog is contracted revenue, but does not include renewals and does not include the

[VanLudwig]

All true, until a project is delayed because a customer's demark isn't ready or there's a resource or other CP slip on our side.  Then it's not. There are very good ITS providers in the EU, lots, and although there's an IRD EU division do we hear anything from them. RedFox is not an in-road to the UE market, that's my point, its' not an EU company.  Still don

[cabbieJBJ]

I don't think it was positioned that way VanLudwig.  It's part of the package, designed to beef up the front end data collection and get it to the back office, which is where ETC's platform excels and has a competitive advantage.  That applies to all markets, not just EU.  Perhaps the principals of Red Fox carry some cred that might open EU doors, but I don't know

[AlwaysLong683]

Thanks for the info cabbie.    Concerning recurring revenues, the following are excerpts from QTRH's latest MD&A dated March 14, 2024:   "...We believe that if we increase the share of our revenue derived from recurring sources we will also increase the predictability of our revenues and cash flows. This will allow us to better scale our operations to ensure we

[cabbieJBJ]

In the main this speaks to the backlog and year-to-year renewals I covered in my previous post.  Backlog is a metric I've been tracking.  Clearly, leadership has an eye on higher margin SaaS revenue as well going forward; they said so in the Q4 call.  So 70% recurring and 15% to 20% "near" recurring  is a pretty good situation ot be in.  Down the

[Socrates1]

Commend you for spending all this time and effort Cabbie...................... we are all ears.............

[cabbieJBJ]

In retirement, I have the time.  Hopfully the contribution is of value. I have my hearing aids in!

[AlwaysLong683]

Just a point of clarifitcation.   Recurring revenues are contract or subscription based sources of revenue that a company receives for software or services they provide to clients on an ongoing basis. For example, telecomm comopanies like BCE, RCI.B, and T have recurring revenue streams because, in addition to owning a cellphone, clients pay a fee every month for the wireless service

[cabbieJBJ]

I think we are sasying the same thing in a way! Most QTRH tolling contracts are made up of two parts.  First there is the implementation period which includes hardware and customized software, among other things.  Typically this phase is 12 to 36 months, depending on the size and complexity of the project.  Properly bid and executed, this phase carries lower margins in the 10%0- 12