Q3 2025 Tecnotree Oyj Earnings Call Transcript
Key Points
- Tecnotree Corp (OHEL:TEM1V) has transitioned from a cash-burning company to a cash-generating entity, with six consecutive quarters of positive free cash flow.
- The company reported a 15% growth in EBIT in constant currency terms, demonstrating strong underlying profitability.
- Annual Recurring Revenue (ARR) increased by 8%, indicating strong customer retention and predictable revenue streams.
- Order backlog reached a record high of EUR105.5 million, providing a strong pipeline for future revenue.
- Tecnotree Corp (OHEL:TEM1V) received industry recognition from Gartner, moving from a Niche Player to a Visionary in AI capabilities, enhancing its market credibility.
- Revenue in euro terms decreased by 2% due to unfavorable foreign exchange impacts, despite a 4.8% growth in constant currency.
- EBIT for Q3 was lower than expected at EUR3.6 million, impacted by provisions and lower license sales.
- The company faced recurring foreign exchange losses, with a YTD ForEx loss of EUR3.9 million, affecting overall financial performance.
- Receivable days remain high at 154, above the target range of 100 to 140, indicating potential cash flow challenges.
- License sales significantly dropped to EUR0.1 million from EUR5.8 million year-on-year, affecting short-term revenue.
Good morning, and welcome to Tecnotree Q3 2025 Earnings Call. My name is Thomas Koponen, Director of IR. And with me today presenting are CEO, Padma Ravichander; and CFO, Indiresh Vivekananda. We will be having the webcast here on Zoom, and we are opening the questions down below, which will be presented at the end of the call in the Q&A sections.
Without further ado, CEO, Padma Ravichander, please go ahead.
Good morning, and welcome to our Q3 2025 results. I'm pleased to share our findings and update you on Tecnotree along with Indiresh, our CFO today.
Q3 results continue to demonstrate our commitment to getting our long-term fundamentals as a company right. As a headline, I would say, we have crossed the chasm of being a cash burning company to a cash-generating growth story.
I have been a CEO in Tecnotree now for almost 10 years. And I would say Tecnotree is a rare
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