Translation: Original comment published in Finnish on 10/18/2023 at 6:15 am EEST.

Tecnotree announced that it has signed a contract with a new African operator customer. According to the press release, this is an order of several million dollars, but it did not exceed the threshold for a stock exchange release (at least 10% of the previous year's revenue). The contract is for five years and covers Tecnotree's full portfolio of BSS products, digital wallet solution (DiWa) and VAS services.

The name of the customer or the exact structure of the order was not disclosed in the release. For license-based subscriptions, typically about half of the order consists of a license (payable immediately) and half of a deployment (payable typically within 12 months). However, Tecnotree has increasingly focused its sales on an ARR model, where revenue is generated gradually over a longer period of time. The DiWa solution to be delivered under the contract is mainly based on a transaction-based business model.

The agreement does not imply any immediate need for forecast changes but contributes to the growth outlook that we project for Tecnotree in the coming years. However, winning a multi-million-dollar contract is obviously positive for the company, especially when we estimate that the risks related to the demand outlook are elevated.