QT Group (Helsinki:QTCOM) Q3 2026 Earnings Call

0:00 Hello everybody and welcome to QT Group's Q3 2026 results presentation. My name is Herta Nervanen. I'm the communications lead at QT Group. I'm here today with Juha Varelius, our CEO and our CFO Ann Zetterberg, who will be presenting the results. After the presentation, we have time for questions, first starting from the room and then if time permits from the line. That's enough of me. Now I'll give the stage to Juha. Please go ahead.

0:34 Good afternoon everyone and welcome to QT Group's Q3 results. We're going to go through the very traditional business highlights and financials by Ann and I'm going to talk about the outlook and guidance for 2026. So if we go on this current quarter, we had a Thank you very much. on that we that does include a one-off cost of 5.3 million which was for these change management negotiations we still have some way to go on those but the kind of a minor thing to close so our expectation or we you know that All the one-off costs. So there won't be any more on those on fourth quarter or later on this particular process. So I do expect that we're going to close that process during this quarter pretty much.

1:57 And on the ARR growth was the 32% but that's of course IAR effects pretty much on that one so we did have a pretty good growth on Qt license sales as well and the if we look on the license sales the we we do have a bit of a fluctuation on different regions so this time the best performing region was really on the Europe APAC was a good second and like we've had now some time the USA has been the slowest moving on our regions and the if we look on the Mark, on the segments, there is not a whole lot of change on that.

3:06 As you know, we are on 70 different industries and medical and defense, well, defense is particularly hot segment globally overall now. If we look in the medical, medical is usually very long-term business. So they look beyond the kind of economic downturns or upturns. They have a very solid long-term plans. And if we look automotive, it's kind of a mixed bag in a way that in China and APAC, our automotive is doing pretty well. and obviously our customers in Europe and US are a bit suffering. On renewals, we've always had a fairly stable churn. It's a relatively low churn.

4:00 So people that sign up for Qt usually renew and that's well, the product is good and usually when people start developing with some products they don't do a kind of a running changes they they go with the one product all the way through the product life cycle that's a very typical thing but we do have a very long lasting customer so the ones that have started using Qt way back when are still doing that so the that renewal rate hasn't changed well I remember during the spring they were going to reduce the number of developers. Well, we haven't seen that. The renewal rates, if we look, people are pretty much renewing. What they've been renewing, what they've been having licenses, so we don't see AI effect on that. We do see people using AI, of course, say a tool helping them, but we haven't seen reductions on the developer license use because of AI. If we look on the, where do we see usually people Thank you very much.

5:51 Thank you very much. And it means that you need to have DOCs and kind of a lot of documentation and you need to support your product at least five years that it stays cyber secure when using Qt 6.12. or beyond, you get DOC from TQ. And so it helps a lot for our customers on that. So particularly customers, if somebody's been using open source before and thinking that doesn't need a commercialized point.

6:48 IAR subscription has been going well. Well, that's kind of expected because in the beginning Thank you for watching! Thanks for watching! The, you know...

7:46 Many things have been integrated continuous, but I don't expect any trouble or problems on that front. So I would say that the integration risk is more or less already behind us in that sense. Of course, when you buy a big company like we did on IAR, there is always a risk that there comes all kinds of integration hassles. But it's been amazingly smooth, I must say. probably the Nordic culture and the closeness helps as well. So Well, I'm going to talk more about when on the future outlook, if we look on what happened during the third quarter.

8:38 Well, of course, there was a bit of a turmoil in oil prices and whatnot, and a bit of a war going. Well, that war started earlier, but during the third quarter, that's what's going to happen. Usually, now, but if I looked at the on different product groups, maybe a bit more one year license sales than three year license sales, but no significant numbers of changes over there. So in that sense, a pretty typical quarter for us. No big surprises.

9:23 I think, like I said already on the second quarter, that we've seen the... Thank you very much. Like I said on the change negotiations or this change we did, we said that we're looking for 20 million cost savings and that is going to happen. So like I said, we have a few small minor things in Europe to close and then the whole process is closed.

10:21 So that 20 million cost saving is going to happen. When you look next year, of course, we're going to be investing next year. So don't make an estimation that our cost level will be this year cost level minus 20. I mean, you know, business does go forward, but from this year current run rate, 20 million will disappear. which means that we announced then that we're looking to downsize roughly 200 people and that was mainly some in US and not affected a whole lot at all. And we're going to get into that 200 number or very close to it when the whole thing is over. So that's where the maturity of the 20 million comes from.

11:19 So more about the future outlook, but now I'll let Ann go through the numbers in a bit more detail.

11:38 Yes, hello.

11:45 I'm going to tell you a little about the financial numbers. We had, as you saw, a pretty good Q3 with 27% growth. With an exchange rate impact, it was 26% growth, which was quite positive and we were quite pleased with it. The distribution licenses grew 18%, which was nice. We had a good increase in new cells. But of course it is the IAR also that affects the Q3 cells as we didn't have IAR at all last year. So the growth that you see in maintenance, 155% in Q3, that is from IAR.

12:40 Looking at the year-to-date then, the growth was 19.1. With the exchange rate change impact, it was 21.7% at comparable currencies. The distribution licenses year-to-date has declined, but that was expected as we had a very high level of distribution licenses sold last year. And, of course, the effect of growth in the year-to-date numbers. but also I often get the questions about how the multi-year contracts affect the P&L revenue as it is difficult to understand sometimes because the QT revenues are to some extent recognized up front for multi-year contracts but looking at the third quarter then and also the year-to-date numbers there is really no Shifts to longer contracts to push revenue growth.

13:41 It's actually a lower percentage of the total revenue share in Q3 and also year to date when it comes to those longer three-year and five-year multi-year contracts. and IAR like Juha said but IAR also has a very strong ARR growth during this period as we're moving into subscription revenue which increases the ARR But also the QT based business in SQS and QT also has a nice growth in ARR because we have very strong long contracts and good relationship with our customers and a very stable load churn.

14:29 So... And looking at the expenses side, we have done a lot of cost efficiencies and so. But of course, the personnel costs are affected by the reorganization parts, the restructuring. Those are one restructuring costs that are booked in Q3. Those are 5.3 million and year to date they are 9.7 million. We do estimate that this is the full cost for the restructuring process even though we haven't fully closed some of the processes yet. The IAR wasn't there last year, and the IAR was over 200 people that were acquired.

15:14 So even though it is an increase of 80 people, you can see that we have declined the number of employees quite heavily during this period. And also the other costs are actually lower in Q3 than they were last year due to all kinds of synergies and cost efficiencies that we have chosen to do during this period to get a better profitability in the company. It's also a natural effect when you made an acquisition that some of the costs are double. and that hasn't fully been realized yet. There are still entities to merge and still offices to merge and so we can still have some effects from that moving forward.

16:03 The total cost then, they grew by 26% in Q3 and also year-to-date about the same. And that restructuring is still ongoing, like you have said. We do have certain investments that we're planning to make, so you must have that into consideration when you plan our P&L or analyze that for the future. Profitability in Q3 was 5.7 million euros, a margin of 11. But if you adjust for the one of cost, we actually have an EBITDA of 21.4, which is quite much higher than it was last year. and the EBITDA year to date was 12.1 but if you adjust for the one-offs it's actually in level with last year's 17.5 so we actually reached 17.9 if we adjust for those one-offs costs.

17:03 So quite a decent quarter that we are pleased with in many ways. Then looking at the The balance sheet. Of course, we have a large part of goodwill, and that is kind of a stable base, not changing from quarter to quarter, as we don't write goodwill off. But we write those mostly over 15 years. The internal development assets that we capitalize, as you might remember I mentioned to you before, Those were 0.2 million euros in Q3 and this is IER that still capitalizes some costs in projects, some development costs. But part of the projects have been finalized and we expect that the rest of them will be finalized during this year. So next year this will probably not be happening.

18:08 and we will instead depreciate those assets moving forward as they are final. The trade receivables are around 20%, which is overruling. So it's a normal and stable level for us. And the ending cash balance was 15.2, obviously lower than last year because we purchased IAR. We are also repaying that debt, so it will have a good liquidity, but it will not increase past last year's level as long as we continue amortizing the bank debt. The interest-sparing debt was 126.7 million euros. We still have bank loans of 120 million euros.

19:00 And we pay those off every half year with 15 million euros. So yearly 30 million euros will be amortized. and other receivables and other short-term liabilities. We still have those 5.2 million euros that we hold to buy the rest of the IAR shares. The arbitration hasn't been finalized yet. I'm hoping it will be. I'm at least moving forward. So hopefully we can close that one soon. and letting people go. That is also a book as a debt in the balance sheet.

19:47 Equity, 212,213 million euros is 53.6%. So stable balance sheet. And as we start, I mean, continue amortizing our bank debt, that will also increase over time. And looking at the cash flow, January to September, that was 29.5 compared to 32.4 last year. It's basically the same operational cash flow, but we are amortizing the bank loan with 15, so that affects the cash flow for a period. And the operational cash flow is affected by the interest that we pay on the bank loan.

20:33 So that is a short summary on the financials. And with that, I... Thank you. Thank you.

20:48 So, well, we haven't changed our guidance that we've given for the year. So the full year guidance is still the same. So the net sales 10% and operating margin 15% at least. And we're keeping those. If we look on the... If we look on the... The business, how I see it, well, the fourth quarter obviously is always the busiest quarter and at this point we do have the pipeline and everything is over there in place. If I look over all our product lines, what we do see obviously on IAR, we do have a lot of Thank you very much.

22:03 Thank you very much. and as we do have organic growth and we will have a revenue growth also next year we will be when we said that we're going to do a 20 million cost savings of course we're going to be also investing next year and Thank you very much.

23:03 Earlier this week, one of the major ideas over there obviously is that the designers can start using AI and doing their designs and later on it generates QML code. Thank you very much. The languages, underlying languages, like on Qt now, it's a C++, but in the future, the languages are going to disappear more on the background when you can use AI on front.

23:56 to use our frameworks and our tools. So on IAR, this transformation into subscription, I don't see it. The reorganization thing, we do have some minor things in Germany to close down, but I think they're going to be closed. So as we think it's pretty much handled. and the well the market challenges are kind of when we operate in three regions I mean APAC, EMEA and USA and 70 industries it's a it's you know it's kind of very difficult to say like I was you know on one sentence what does the market look like so you know we're doing pretty well in China We're doing pretty well in Japan and APAC in general. Automotive is doing there pretty well, as you know.

25:02 It was a few years back I said that there's going to be a day that we are going to be driving Chinese electric vehicles, and I think that was a pretty accurate prediction. I mean some people still might have a Tesla but the P1 in US where obviously our customers are suffering and not only the automotive manufacturers but the tier 1 manufacturers as well. Whereas on medical we're doing pretty well. All around the globe defense is a very hot topic. I mean you know that around the defense industry Jens Nielsen The market looks like it's very difficult.

26:02 But in general, if I look at the I'm happy how we're doing in Europe in overall, when I combine all the segments, I'm happy how we're doing in APAC. It doesn't mean that we wouldn't, you know, there's always room for improvement. and you know I'm not that happy how we're doing in the US so I think that in the US we can improve quite a bit so the there there is a room for better execution the well the long-term growth I think that what I do get challenged is that I actually don't get challenged that will there be a screen pretty much on every device and will there be touchscreens and will all the devices be digitalized.

26:53 I don't get challenged on that. I think that's commonly agreed upon. What I do get challenged is that will AI take over this all? Who knows, when a new technology arrives in the beginning, we overestimate the effect. And then on a long term, we underestimate, right? So we usually overestimate what's going to happen in the next two, three years. And then we underestimate what the world looks like 10 years from now. That's traditionally been, of course, AI is moving faster than anything else. We've seen before, but that's usually how things goes.

27:39 So if I start from the kind of embedded systems that somehow are functional safety or safety critical and they need certifications and whatnot. and C.R.A.' 's and whatnot. The AI is quite far from that. So if you code with AI, Thank you very much. Then we have kind of an in-between embedded systems and over there we see that people are using AI to help their work and whatnot.

28:43 But we still see that people are pretty conscious on AI usage and basically for two reasons. One is that when you do embedded devices, a crucial cost effect is the hardware, the amount of memory the hardware has and the hardware itself. And manufacturers usually want to have as clean and as sufficient code as possible so that they can have the cheapest possible memory and that, right? It also means that these products need to be supported a long time so it makes sense that whatever is built in there it's somehow structured and architecture is known and it can be moved forward to other developers maintain and whatnot and their frameworks do help so I think that the artificial The AI models will be using frameworks also going forward in that sense and then the third is that at least at this point of time the software usually represents a small fraction of the cost of the whole product not to mention that what does it cost if you have to do product recalls right so it's a um

30:15 The people are kind of calculating that how much do I want to save on doing software that all kind of sums up to that the humans and developers are very much involved in the whole process so far and thinking about the architectures and the frameworks. Then we come to a software that the It's not so much on embedded anymore. It's a type of software that, you know, I'll do my own web pages, right? And if I do my own web pages and they're a couple bucks, I can fix them tonight and then I have a new web page, right? And for that kind of use, AI is very good.

31:08 So we see it on the low end where there is a... you know the risk of something going wrong is limited there the AI usage is is that um If we talk about a product, I think that there is no timeline to this, but first of all, we do see that over time we're going to go more on consumption-based pricing. We're going to introduce... Well, we have already some and we will introduce more when we go forward.

31:53 Some people have asked that is there a huge risk involved in that and I don't think there is because When we're going to start introducing consumer-based pricing, we can of course do it in a limited market. We can do it on the new customers only and see how it really goes. We don't have to roll it up on, say, a consumption-based pricing in a particular country only for new customers and then view how that usage goes. So it can be done in a way that you don't take a humongous risk doing it. Going forward, I think that we're going to have more and more AI agents on our products and which will help the use of our products.

32:48 And those agents will also be combined to each other in a way that if you... Thank you very much. you're going to be able to have agents that help you creating code with Qt framework testing without testing tools and then IAR turning that all to machine language and I think that then Using all those, you can use the whole set of products or you can use a subset of products on consumer base and AI is helping you on all that and that's kind of the future in the three to five years from now.

34:01 Do I see that the... Well, at least now we see that if we do AI-helped coding with Qt and it's done by ourselves, it's far to do something. So I think those efficiencies will always be there. I don't think that the efficiencies having very efficient software on embedded devices that have very little bucks to prevent product recalls that you know that's kind of a fundamental thing on an embedded world and that's not going to go anywhere so eventually what that means is that our addressable market will grow because it will enable people with less skills to do more right so when this world kind of comes it means that you and I will be able to do simple demos we can do that runs on real hardware we can be able to do product managers will be able to do simple demos and simple coding and what for development when this world comes more in reality you can do we can do more of that and the uh it means for Qt a bigger addressable market as we go forward Well, then another change that we usually don't talk so much, but it's also happening,

35:33 is the way that the processes are run in companies. And that means, for example, that in former days, it was very important that you were visible on Google. Thank you very much. Thank you very much. The people came to read our documentation.

36:26 That's of course changing quite a bit. So one of the first things you need to be, you need to be visible on AI, which means that you need to be able to train the AI that it knows your product, it can recommend your product, it knows how to help if there are bugs and whatnot. and we're very well down on that road we've been doing that a long time now already so the um but that's kind of a change we took a bit less so of course we have a q4 to close and and of course that's going to be the busiest quarter and the best EBITDA. If I look at the Q4, I'm pretty comfortable with it. If I look towards next year, this year has been a tough year and all kinds of challenges if I look next year.

37:28 The owner number wise obviously it's going to look substantially better than this year particularly on a profit line and I'm looking forward that the it's going to be a much more well it's going to be a better year so I'm hopeful to that and then it's always this disclaimer that if something terrible doesn't happen but I think that the our new normal is that there is at least one or two wars starting somewhere and I think that the I probably fair to say that for the next two years that I see forward there are going to be a lot of surprises What happens after that? We'll see.

38:23 Yeah, with that, thank you. And I'm sure you have a lot of questions. Distribution license growth in Q3, it got back to positive territory at 18% year on year. Was this mainly timing or is there something to extrapolate for the coming quarters?

38:44 It's timing. So the guidance we've been giving before that the, you know, it's a flat or small decline still is still there. Yeah. So the thing is that we did report the Distributional license revenue early on, on a yearly basis. And the reason is the fact that it really goes up and down, right? So on a yearly level, you can kind of see a bit of a trend, but the quarterly fluctuations are really big. I mean, quarterly fluctuations like last year, the biggest ones on quarter on quarter were 18 on distributional licenses now. So it's like the previous guidance that it's flat is small decline.

39:33 Fair enough, and yeah, I appreciate the disclosure on that. Then on IAR, I think in Q2, you stated that around 68% of the customers had been converted into the same description model. Can you update us on that figure? And you also mentioned that it takes still two years to complete the migration. Sounds lengthy, given how far you are currently. So a bit of color on that, thanks.

40:02 Yeah, on that particular figure, I need help for man because I don't have it. But on the, before you, I'll give you a little time. You know, in... We had it on Qt and we had it, you know, there are customers that will never convert. I mean, you know, they don't know versions and whatnot. So my expectation is that it'll slow down. So I think that two more years and then... We are where we are, and then I think that it's pretty much done. So what was the percentage on third quarter?

40:47 Well, it is above 50%, but the 68% is not 68% of the customer base. It was 68% of the bookings at that time. So NIR has a large amount of customers who don't buy anything every quarter. So there's still a large portion of the customers that will come and want to buy perpetual from us. And then we will convert them. So it's not 68% of the customer base, but more of the bookings there. Got it, thanks. Good clarification. And then finally on the acute licensing model change towards a consumption-based model. I think in the last quarter you were still a bit hesitant to comment about the potential revenue impact of that. So can you disclose anything more about that?

41:43 Because logically thinking it sounds like there might be some you know element of of disruption given that you're moving from a upfront based three-year license booking model towards a more stable one

42:00 It's too early to say, but of course we will introduce a model that our current customers won't get a huge price increase or a huge price reduction to that matter, right? Because I think that our position in the market is that our products are really state of the art, right? They are really good. and but they're not the cheapest in the market either so I don't think that we have a price elasticity really and the two levels where we are how much we charge the when we do go in a consumption-based modeling it's the I'm not expecting to have a huge revenue increase through that, but I don't want to see any decrease either. So it's going to be modeled through that. I think it's more where the world is going that the...

43:00 People are using, developers are using AIS to boost their work, which means that there is more usage of Qt framework, and we think that, you know, fair enough to have that. One equation over there, obviously, is that the, let's see how it goes, but as you know, that the You know, earlier on, people were saying that we're going to start using AI and we're going to get a lot of efficiencies. Well, yeah, sure. Many companies, you know, the cost of using AI is becoming visible that, hey, this is how much I know that there are companies that they're looking at the... Thank you very much.

44:02 Thank you very much. We're looking for a revenue neutral, but we're also looking for that we go into that consumption best because AI is being used. It's not only Qt framework, but also the...

44:52 Thank you very much. Well, we think it's a winning combination. It's definitely something that the, I don't know that the whole other companies have something like that. So I see, for example, some of the testing companies that are competitors, they are trying to implement tools for developers. Well, we already have one and a half million developers on Qt framework.

45:38 So they're trying to move into that, hey, it's not only a testing tool, but you can also something for developers to develop. So telling offering when we get there. And a very unique one. Let's see that if we can add any value. From the customer point of view, what's the added value is that, hey, well, you know, I get a whole set and I can do the whole thing and I don't have to think about it and it works very well together. So that's where the benefit comes. Thank you.

46:11 Hi, thank you for the presentation. Valter Rossi from Danske Bank. I'd first like to ask about IAR. I know you don't disclose this, so that's why I'm asking. What was IAR's base revenue level in 2025 and how much has it declined in sales this year?

46:40 Well, the IAR, you can, you know, if you look at the historical data on IAR, it was on a fairly slow growth, and it was on a, so it was a bit over, a bit over... Thank you very much. Like we discussed already offline, we don't disclose the BU numbers, so we don't disclose the BU numbers. But we were discussing early on that it's a...

47:51 Thank you very much. Even high as 30%, and I think that was a very high end, so not that bad, but substantial.

48:25 Okay, that's helpful. Thank you. Then second question relating to the license maturity mix. You mentioned earlier that I think one-year licenses are going a bit more than three-year licenses. So to me that actually sounds that the split would be close to 50-50 right now of sales. So can you give any indication on that?

48:53 Thank you very much. The changes were very little, but on one-year licenses, it was a bit more than on the three-year licenses. But no substantial change, really. I mean, I didn't calculate the millions. I was just looking at the different product lines. So a bit more one-year license, but no big change. No meaningful change in that shift, really.

49:37 All right, final one from me. You have now publicly stated your plans to change the pricing model at some point. Have you seen any kind of, from customers, any changes in the buying behavior that they would be buying now, the licenses with the old 30s?

50:01 Like Daimler and LG and, you know, Fortune 500 companies and the, you know, they very long, very long relationship with our customers. So they and if you look on the Thank you very much. Thank you very much. Well, we talk too much about cars, but let's talk about medical devices.

50:59 For example, the cost, our cost in the overall whole product, it's like this big, right? I mean, yeah. So they can, you know, if you think that... They want to use the best of free products to build their software and if they can squeeze the software development tooling cost and testing cost they're optimizing this size of the overall cost. If you think car, for example, I mean, you know, yeah, there is a software cost, but it's, you know, our part of that software is important for those customers that they, for example, in Europe, they've fulfilled the STRA requirements and the software works and there are not recalls.

51:55 and it looks cool than the optimized. So that's kind of the position where we are. And then we, so I don't see, the users are happy with the products. They're not changing. So then we have the, and most companies are very big. So the pricing discussions are with the sourcing organizers. Their target, by the way, is always to lower the cost by 5%, so it's a funny discussion. They want to have more cheaper, so that's how it works. But yeah, absolutely no. They've been asking that, hey, well, how do you want to charge this?

52:40 Got it. Thanks, Juha.

52:45 Good afternoon, it's Matt Rehgon and Diaby Carnegie. A couple of questions. Firstly, you already discussed a bit about the difference between ARR and organic growth, but could you just... Quantify that how much the maturity mix in your growth is affecting your top line growth and how much that has done in the first three quarters of this year. I'm just trying to understand that what kind of change in the numbers that we see. So would Jan want to answer?

53:33 You mean the three-year and five-year contracts? Exactly. How much of those there are? I can say that, as I said when I was on the stage also about the financials, that the multi-year contracts are in Q3, that's a share of the total in Q3, they are lower, the multi-year contracts, than they were last year. Thank you very much.

54:25 All right. And no major changes in the quarters either, I assume. So Q3 has been kind of favorable in terms of, or not as favorable as earlier, but then in the first half you had quarters that had the positive impact on top line growth.

54:50 You mean Q1 and Q2? Yes. I believe in Q2 we had a higher degree of the multi-year contracts. We communicated that, right? Then we did in Q1. So there was some effect there in that quarter in the growth, but not in Q3. I would say quite the opposite.

55:16 All right. Thank you for that. Then the second question is... Thank you very much. So, when can you start investing in growth more? Is that going to be in first half or Q1 next year or how do you plan to do that?

55:54 We are, you know, I think that, well, we are hiring already, right? And it's a bit of a... Well, of course, we do... We do need replacements. People are leaving voluntarily as well. And we do need on a growing scale, we need more AI capabilities. And not only on R&D, but also on the business side. How do we use AI in our own processes to improve them?

56:40 And then on the R&D side, if you think that what I was describing, that we go in the consumption-based model kind of a platform where all our products are, and we build AI agents on top of that, it's a... We need new skills on that type of development and we're doing those hires as we speak. So in that sense, you know, I'd say there are change negotiations where and at the same time, same companies are hiring.

57:16 All right, thank you for that. Then you talk about the importance of regulated customer industries for you so that many customers are actually in those kind of environments. What is the revenue share of your customers actually being in regulated industries? Hmm.

57:46 Thank you for joining us. you know we do have um if you take well we talk so much about cars that i met some investors that they thought that we are only in the automotive industry and i decided that i'm not going to talk about cars but i'll talk cars right and then you have brakes so to kind of that's why i'm saying that i'm a bit i know on defense say the same thing that you do have You know, you do have applications and functionalities on defense that are, you know, not safety critical. And then you do. So it's not so that you can say one industry, we kind of are looking into their functions.

58:33 But I'd say that's a very good question. And that's something that we need to look and see that the IAR is very much in that business and we have a good framework quite a bit on that business and then our testing is more broad on all kinds but sorry I can't give you an answer on that.

59:04 All right. Then could you just briefly describe your momentum in your assurance? And then you have IAR. You have already touched on the IAR, which seems to be doing fairly well, considering that there is reductions to be made. But in QT Legacy and TQA, How would you characterize the moment when those...

59:36 Sounds so bad to say QT legacy.

59:45 Let's define it that being everything else than testing and quality assurance. Yeah, yeah, yeah. And other acquired businesses.

59:54 Yeah. Well, you know... I'll try to describe you. So, you know, before I was saying that the... If you look at successful frameworks, tools, they are 200 million plus minus something. I mean the ones that have been really successful. And then you have quite a lot of businesses that are 40, 50. We've been able to create a user community of one and a half million. Many big companies have been trying to do something like that and failed. So it's a great success. Thank you very much.

1:01:02 Then we became this business model that we have the distribution licenses right which is priced per unit and that kind of gives you an other alternative growth which we've been using and that will continue to grow and over the course of time. So, over time, maybe Qt can be like a 300 million business, and where do we grow from there? And then the universe sent us AI. And now AI actually means that as we go further develop this, the more people...

1:01:48 Thank you very much. or Qt itself you know if we can keep a Qt on a uh on on a and that's uh then if you look you ask that how would I rate the the products well squishing testing that is something that the um You know, I've said before that the, you know, I would say that the over there, you're going to be looking at double digit growth with starting with the two. And that's going to...

1:02:57 Originally, we said that our target with Qt is a 100 million business, and a lot of people were smiling at us at that time. Maybe they were thinking that our target is too low. And, well, we got beyond that. The IC's quest, I've said before, that IC's quest like Qt, 2.0. So Squish works on multiple languages. It's very well integrated into Qt framework. So if you're doing something with Qt, it makes all the sense in the world to do the testing with Squish and use also Cocoa for code coverage. Axivion itself is one of the best tools for static code testing and the architect certification is a very unique offering on that.

1:03:57 So, you know, it's very easy to see that it's going to grow into a hundred million business. and the growth now in the early days will be that you know 20 plus minus something percentage on the the With this price increase on the next couple of years, you're going to be looking like 20 plus minus something growth. So that's going to give you an idea. And really, where do we need to spend the time with IAR on the next couple of years while it's growing through this price conversion? And so.

1:04:55 That's basically it, what I call Qt legacy, because it's percentage-wise growing less. Well, not necessarily, because it is bigger than all these others, but these others are on the earlier phase of their path. So if you think the really old way of looking at the product lifecycle, obviously the Qt growth and the stories, of course, it kind of evens out. and what we're looking for The design tooling is interesting to see. I actually don't expect huge revenue numbers out of it. I kind of see it more like an integrated tool making our offering more complete so that you can start from design and then you move on into developing the things, whatever you're doing.

1:05:59 but let's see the you know it might be a product of its own right and we're gonna you know people are buying only that but the that's you know I don't let's see but I you know I'm not counting on it I'm counting on it more that the early on people can start this only six minutes over time Thank you so much. Thank you very much. Looking forward to seeing you at the fourth quarter.