Quartix Technologies PLC (AIM:QTX) said it remains confident of meeting market expectations for 2025 after a strong start to the year saw a sharp rise in customer numbers, new subscriptions and recurring revenue.
The vehicle tracking firm reported a 21% increase in annualised recurring revenue (ARR) for the first quarter, with total ARR rising by £2 million to £34.2 million. ARR refers to the predictable income generated from subscription contracts and is seen by Quartix as the key measure of long-term value.
Free cash flow in the quarter reached £1.3 million, pushing the company’s net cash to £4.4 million. Apart from an inflation-linked pay rise for staff in January, overheads remained broadly stable compared with the second half of last year.
Customer acquisition also accelerated. The company gained 2,206 new clients in the three months to March, an 18% year-on-year increase, while new subscriptions rose 19% to 22,102.
Growth was particularly strong in Italy and Germany, where ARR rose 53% and 63% respectively on a trailing twelve-month basis. In the US, the number of new customers jumped by 52%.
Quartix, which supplies tracking software and services to businesses with vehicle fleets, said price rises had now been built into nearly all customer contracts. Around 75% of the impact from these inflation adjustments had already been reflected in Q1.
The group’s customer base now stands at just over 31,000, with more than 310,000 active subscriptions across its markets.
Net revenue retention - a measure of how much existing customers spend over time - edged up slightly to 96.3%. The company said it aimed to improve this further.
While Quartix does import some hardware into the United States from its UK arm, it said any exposure to tariffs would be limited given the small size of this part of the business.