In the fourth quarter of 2019 QuarticOn ramped up its efforts on e-commerce platforms by securing new clients (as at the end of the year, the Company had recorded a 63-percent increase in the number of SaaS clients relative to the end of Q3 2019). These efforts delivered increased SaaS profit on sales as early as in Q4 2019, reaching 5 percent of total revenue (compared with 1.5 percent in the preceding quarter). At the same time, the Company implemented cost-optimisation measures which helped it achieve a 15-percent reduction in costs relative to the previous quarter, and consequently post a positive EBITDA in December 2019.
QuarticOn also presented some preliminary financial data for Q4 2019. In the period September – December 2019 the Company posted sales revenues of about PLN 1.14 million, a 4.8-percent increase relative to the previous quarter. Its EBIDTA (i.e. profit on sales) reached PLN -145,000, a PLN 280,000 improvement over the previous quarter. The net income in Q4 2019 was PLN -859,300.
“We worked very hard towards the end of last year to drive our sales. In the last months we’ve been focusing primarily on growing our business in the SaaS channel, and these accounted for almost 7 percent of total sales by the end of the year. It took us some experimentation with various forms of cooperation to work out a model which works best for both us and our partner platforms. So, we believe our growth in this area will help us drive economies of scale and secure a large number of clients, including from multiple international markets. We continue our commitment to engage in research, and to develop new products. We are also thoroughly exploring acquisition opportunities,” said Paweł Wyborski, QuarticOn’s founder and CEO. The last quarter of 2019 also saw the further optimisation of processes and reductions in operating costs.
“We had been aiming for cost reductions since Q2 2019. As a result, operating costs in the last quarter of 2019 were lower than in Q1 by almost PLN 740,000 (a 36-percent decrease). We’re glad that our sales- and cost-related measures have led to the predicted EBITDA break-even point. However, we’re determined to grow and drive our sales much more vigorously in 2020, especially in the face of the ever-growing cost pressures”, explained QuarticOn’s Member of the Board Michał Giergielewicz.
 EBITDA as profit on sales. In monthly and quarterly terms, the Company’s EBITDA is calculated based on profit on sales, and in annual terms based on operating profit.
 Operating costs less depreciation