QPR Software Announces New Strategy – Increased Investment in the Growth of the Process Mining SaaS Business Internationally and Creating New Ecosystems
QPR Software Plc announces its new strategy, stating that the company aims to increase the value that it generates for its customers and support growth through a concentrated focus. Behind the selected strategy is a rapid growth of the process mining market, which creates new opportunities for the company. Adhering to the renewed strategy 2022 – 2026, the company will focus on the international growth of the process mining SaaS (Software as a Service) business. The strategy enables growth through investments that are scalable and targeted at selected application areas of process mining. Additionally, the company will build new strategic partnerships to extend its offering. Compared to 2021, the company aims to double the annual recurring SaaS revenues from process mining over the next two years.
According to several market research companies and industry analysts, the size of the global process mining market in 2021 was around EUR 500 – 550 million. The market size is expected to grow 40 – 50% in 2022. Additionally, a large complementary market exists for process mining related consulting and services. The software market for strategic corporate performance management is mature and continues to grow steadily.
QPR Software is today announcing its new strategy which reflects market changes and highlights the company’s future priorities. Investments will be focused on business areas where the company has a competitive advantage and sees sustainable growth, especially through international expansion. Digitalization projects in organizations and an increased demand for process mining internationally, support a favorable business environment for company growth. In accordance with the new strategy (2022 – 2026), the company will focus on the international growth of SaaS solutions for process mining. The company is increasing its marketing and sales investments, especially in Northern and Central Europe and the United Kingdom.
QPR has a strong position in the Middle East is and aims to use this stronghold to expand its regional offering to process mining. The focus will be on fostering the continued success in license sales and the steadily growing recurring software maintenance revenue, while simultaneously using its process mining solution as a growth engine to boost recurring SaaS revenue.
Furthermore, QPR is building new strategic partnerships and alliances to achieve a scalable go-to-market model, extend its offering, and enhance customer value through technology and implementation partners. QPR’s comprehensive offering in process mining will be further developed based on customer and market insights, especially with increased AI, Machine Learning, and task mining capabilities. The offering will drive intelligent automation in its customers’ processes and operations and secure their delivery of sustainable value and desired business outcomes.
Consulting will continue to be a key part of QPR’s offering wherein the company aims to shift towards tool-agnostic consulting services. The consulting business is expected to grow steadily throughout the strategy period.
The new Data-to-Value concept and focused offering drive growth
With the new strategy, QPR is shifting away from generic strategies for individual products and services towards a holistic offering that is harmonized from beginning to end: from scalable SaaS products to value delivery and continuous services. The company’s new Data-to-Value service offering combines process modeling with excellence in process mining. Through the data and insights generated, the realization of the customer value is ensured, for example, through machine learning and intelligent automation. The unique Data-to-Value concept is supported by a scalable go-to-market model implemented through a mix of in-house capabilities and an extended partner ecosystem.
The company’s key strategic target is to accelerate growth by increasing investment in its SaaS business and achieving over 30% CAGR in the SaaS business during the strategy period. Compared to 2021, the company aims to double the annual recurring SaaS revenues from process mining over the next two years.
The company’s secondary target is to grow the Company’s annual net sales at a high single-digit percentage throughout the strategy period. After the initial growth investment, the company aims to remain EBITDA-positive throughout the strategy period and achieve a positive operating result by the end of 2024.
CEO Jussi Vasama:
“In 2021, QPR Software celebrated its 30th anniversary as a pioneer and leader in its industry. For more than three decades, QPR has been leading in the innovation of software solutions and services that have generated tangible process insights for customers around the world. As companies continue their digital transformation and automation journeys, we are here to help them create actionable intelligence to reach their full operational potential.
This is the time take advantage of the global opportunities offered by the rapidly growing process mining market and renew our strategy accordingly. The market growth opens an opportunity for QPR to explore new growth and value creation opportunities. We aim to strengthen our position as a software company that combines SaaS solutions with consulting in process mining and modeling. QPR’s comprehensive solution combines our software offering and internal know-how with the knowledge of our strategic partners and alliances to enable extensive customer value realization.
The high growth target for our SaaS business implies that most of our company’s revenue will by the end of the strategy period be collected from the recurring SaaS business. The selected strategic direction is a significant change for our company, and I firmly believe in attaining substantial growth during the strategy period. This new direction is also rewarding for our employees through new opportunities to learn as well as a clarified image of their role as part of our clients’ successes. I am very excited for this new phase, which opens great opportunities both in Finland and in the international market.”
Guidance for 2022 (unchanged):
The general instability of our operating environment in Europe will create uncertainty for new customer acquisition in early 2022.
QPR estimates that its net sales will grow in 2022 (2021: EUR 9,140 thousand), supported by the growth in SaaS net sales, based on an increased sales portfolio, ongoing customer revenues, and the booking level for consulting.
The financial goals are:
- The company will increase investments in its SaaS business to accelerate growth and achieve more than an 30% increase in CAGR in the SaaS business during the strategy period (2022 – 2026)
- Compared to 2021, the company aims to double the annual recurring SaaS revenues from process mining over the next two years
- The company aims to increase its annual net sales at a high single-digit percentage throughout the strategy cycle 2022 – 2026
- After the initial growth investments, the company aims to remain EBITDA-positive throughout the strategy period and achieve a positive operating result by the end of 2024