Translation: Original comment published in Finnish on 2/29/2024 at 6:53 am EET.

Tecnotree announced yesterday a new contract with Brazilian operator Nuh Digital. The release did not disclose the size of the deal, but we estimate that it was relatively small. The agreement covers Tecnotree's full BSS portfolio.

With Tecnotree's products, Nuh Digital aims to improve its efficiency and generally upgrade its technological capabilities to a new level. In concrete terms, this should translate into faster new product launches and an improved customer experience.

The exact structure of the order was not disclosed in the press 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 deal does not lead to any forecast changes but contributes to the growth outlook we forecast for Tecnotree in the coming years.