In Q2 2019, QuarticOn, a tech company providing SaaS solutions for e-commerce, focused primarily on boosting the sales of its recently updated services, expanding cooperation with technology partners and e-commerce platforms, and developing its partner channel. The quarter saw the company achieve sales revenues of PLN 1.14 million, including 32 percent from foreign markets, as it continued to move towards the break-even point in Q4 2019.
During Q2 2019 QuarticOn worked hard to develop and integrate its plug-ins for SaaS e-commerce platforms, affording the greatest potential for business scalability. In the first days of August, the company launched the sales of its fully SaaS solutions on Shoptet, an e-commerce platform bringing together more than 18,000 online stores, and the leading technology provider in the Czech Republic and Slovakia. Also, QuarticOn is doing second-stage tests of its Shopify plug-in, and it will soon complete integration with other platforms.
Furthermore, the company has launched a new sales model based on its new product range, which is organised into feature bundles. Currently, its range includes about 90 features, all effective tools to optimise sales across e-commerce channels, which can be deployed stage- or group-wise. The new sales model speeds up client acquisition, while allowing existing clients to use newly developed services.
Moreover, in Q2 2019, the company developed a whole new partner programme, which was launched in late July.
During that period, QuarticOn also wrote and submitted an application for funding under the Smart Growth Operational Programme (SGOP) 1.1.1., to support one of its development projects involving the use of AI algorithms in the e-commerce fashion industry. The project’s estimated cost is PLN 8-10 million. The application passed through formal pre-assessment, and in the second week of August the Company presented the project’s core objectives through an expert panel. The results of the assessment procedure are expected to be announced in September.
In the period April-June 2019, QuarticOn posted sales of PLN 1.14 million, up 4% compared to the same period last year, but down 8% q/q. The company had an EBITDA of PLN -0.55 million and a net result of PLN -1.20 million.
“We had lower sales year-on-year mainly because our cooperation with a major VOD client had come to an end – which also had a one-off effect on our quarterly churn rate – and we’re still in the process of closing new deals in the VOD segment. Excluding sales to VOD clients, the company’s Q2 2019 revenues were similar to the previous quarter, and were up 15% year-on-year. As expected, QuarticOn optimised its operating costs in Q2 2019, with a reduction of PLN 330,000 relative to Q1 2019, mainly in payroll, IT infrastructure, & services. These cost savings helped us lower the negative results: EBITDA by PLN 228 thousand q/q, and net result by PLN 202 thousand q/q. In the current quarter, our main focus has been on driving sales (especially in new sales channels), and we continue to keep an eye on our costs” said Michał Giergielewicz, a Member of the Board at QuarticOn SA.