QAD cloud revenue continues to grow

Key Takeaways

QAD's total revenue increased from $74.1 million in Q2 2021 to $84.8 million in Q2 2022, driven mainly by growth in subscription and professional services revenue.

Subscription revenue rose to $38.4 million, marking a 24% increase from the previous year and comprising 45% of total revenue, a three-percentage point increase from Q2 2021.

QAD announced an agreement to be acquired by Thoma Bravo for $2 billion, resulting in the withdrawal of its guidance for the remainder of the year.

QAD has reported financial results for the fiscal 2022 second quarter, revealing that total revenue grew from $74.1m in Q2 2021 to $84.8m in Q2 2022, resulting primarily from increases in subscription and professional services revenue.

Subscription revenue grew to $38.4m, up 24 percent from the same quarter last year, and accounted for 45 percent of total revenue – a three-percentage point increase over last year’s second quarter.

QAD recently announced that it signed an agreement to be acquired by Thoma Bravo for $2bn. Under the terms of the agreement, QAD shareholders will receive $87.50 per share of class A common stock or class B common stock. Given the pending acquisition, QAD is withdrawing guidance for the remainder of the year.

Anton Chilton, chief executive officer at QAD, said: “During the second quarter, QAD continued to grow cloud revenue, while improving cloud and services margins. Excluding transaction costs related to our pending acquisition by Thoma Bravo, operating income exceeded our target.”