Q-Free: Fourth quarter and preliminary FY2022 financial results

15 Feb 2023 07:00 CET

(Trondheim, 15 February 2023) Q-Free ASA (Q-Free, OSE: QFR) reported revenues
for the fourth quarter of 2022 of 305 MNOK, up from NOK 212 million in the
corresponding quarter in 2021, and an EBITDA of 30 MNOK (27). The company
continues the strong development in annual recurring revenues (ARR*), with a
growth of 40% year-on-year, to a calculated ARR of NOK 332 million. Hence, more
than 32% of revenue in 2022 was recurring. Q-Free reiterates the strong outlook
and will continue to invest in an ARR business model to leverage on the
opportunities when cities across the world are implementing accelerated
sustainability measures.

"Q-Free is in the middle of a transition from a project-based revenue model to a
higher degree of recurring revenue and scalable software solutions. We continue
to build a solid recurring base and it has been an especially good quarter for
our Traffic Management segment. We launched our Kinetic SaaS platform in October
2022, and we will in the coming years capitalize on the shift in business model
and scalable technology platform," says Thale Kuvås Solberg, President and CEO
of Q-Free.

The company reported revenues of 305 MNOK in the fourth quarter of 2022 (212)
and an EBITDA* of 30 MNOK (27). The EBIT ended at 15 MNOK (13), and the order
backlog was 1 413 MNOK at year-end, which represents 1.5 times annual revenue.
The company also reported a cashflow from operations at 63 MNOK in the quarter.

"This shift in business model will be advantageous for Q-Free in the long run as
it reduces volatility and increases robustness. Macrotrends with stronger focus
on ESG initiatives such as the need for better air quality in urban and
interurban areas globally, need for improved traffic flow and road safety all
working in our favor. We are now investing heavily in technology and product
development to ensure that we utilize this window of opportunity and are able to
maintain and capitalize on our technology advantage in the years to come"
Solberg continues.

Q-Free aims to continue to build its ARR base by pursuing long-term tolling
service contracts, win new Traffic Management SaaS contracts in the US, expand
its ALPR SaaS business in the US and Europe, and grow its tolling back-office SW
business in connection with new tolling system deliveries.

"Q-Free continues the transformation to a more robust and scalable recurring
business model and is well positioned to benefit from positive macro trends
related to efficient, safe, and sustainable transportation. We will continue our
efforts in building and investing in developing solutions that will meet market
expectations and demand in the years to come. With the growing pipeline of
upcoming tenders and projects to bid on, Q-Free is well positioned to increase
its market share in a growing market" Solberg concludes.

Q-Free will host a webcast on 15 February 2023 to present its 4th quarter
results 2022. The presentation starts at 09:00 CET and can be followed live
on: https://www.q-free.com/investor_relations/web-cast/

A recorded version will be available after the webcast has been concluded. The
report from the Board of Directors and the webcast presentation is enclosed.

* ARR, EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section of the
fourth quarter 2022 financial report.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Rita Bøe Isaksen, Board Secretary in Q-Free ASA,
on 15 February 2023 at 07:00 CET.

For further information, please contact:

Thale Kuvås Solberg, President & CEO, +47 936 800 30
Trond Christensen, CFO, +47 481 027 54

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 NOK 900 million and employs approximately 350 transportation
innovators, experts, and enthusiasts. To learn more about how Q-Free is
"changing the movements of life", visit www.q-free.com or Twitter:@Q-FreeASA

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582425_QFR_Q4_2022_REPORT.pdf
582425_QFR_Q4_2022_PRESENTATION.pdf