Quarterly Business Review - Q1 (Sample)
Prepared for the management team. Reporting period: 1 January to 31 March 2026. All figures
are illustrative and are provided as a worked example of a quarterly review pack.
Executive summary
Revenue for the quarter reached 1,250,000 EUR, ahead of the 1,180,000 EUR plan and up
eighteen percent on the same quarter last year. Gross margin improved to 32.8 percent from
30.1 percent, driven by a shift in mix towards higher margin services and a renegotiated hosting
contract. Operating costs grew more slowly than revenue, so operating profit improved in both
absolute and percentage terms. The main risks for the coming quarter are customer
concentration and a hiring pipeline that is running behind plan.
Financial highlights
• Revenue: 1,250,000 EUR against a plan of 1,180,000 EUR, a favourable variance of 5.9
percent.
• Cost of sales: 840,000 EUR, giving a gross profit of 410,000 EUR.
• Gross margin: 32.8 percent, up 2.7 percentage points year on year.
• Operating expenses: 295,000 EUR, or 23.6 percent of revenue, against 25.9 percent last
year.
• Cash at quarter end: 640,000 EUR, equivalent to roughly five months of operating costs.
Key performance indicators
• New customers acquired: 34, against a target of 30.
• Gross revenue retention: 94 percent. Net revenue retention including expansion: 108 percent.
• Average contract value: 18,400 EUR, up from 16,900 EUR.
• Sales cycle length: 47 days on average, broadly flat.
• Support satisfaction: 4.5 out of 5 across 812 responses.
Segment analysis
The services segment contributed 61 percent of revenue and grew 22 percent year on year,
helped by two large implementation projects that began in January. The product segment grew
11 percent, held back by a delayed release that slipped from February into April. Regionally,
domestic revenue grew 14 percent while export revenue grew 29 percent from a smaller base;
currency movements contributed approximately two percentage points of the export growth.
Operations
Delivery capacity remained the binding constraint through the quarter. Utilisation averaged 78
percent against a target range of 70 to 75 percent, which supported margin but left limited slack
for unplanned work and contributed to two schedule slips. Two of six planned hires completed;
three offers are outstanding. Average time to hire increased from 38 to 52 days, mostly in the
technical screening stage.
Risks and mitigations
• Customer concentration: the largest customer represents 19 percent of revenue. Mitigation is
a targeted mid-market campaign and a cap on single-customer exposure in the pipeline
Quarterly Business Review Q1 (Sample) | Page 1 of 2
review.
• Hiring shortfall: the delivery plan for the next quarter assumes four additional engineers.
Mitigation is a pre-approved contractor pool and a revised screening process.
• Release slippage: the delayed product release pushes approximately 45,000 EUR of
expected revenue into the next quarter. Mitigation is a scope freeze and a weekly readiness
review.
• Foreign exchange: roughly 24 percent of revenue is billed in a foreign currency without
hedging. Mitigation under evaluation is a rolling forward contract for half of forecast exposure.
Outlook
The plan for the next quarter assumes revenue of 1,340,000 EUR and a gross margin held at or
slightly above 32 percent. Achieving it depends on closing the outstanding offers, shipping the
delayed release in April, and converting the two enterprise opportunities currently in late-stage
negotiation. A downside case, assuming neither enterprise deal closes and hiring slips a further
month, gives revenue of approximately 1,220,000 EUR with margin unchanged.
Method notes
Revenue is recognised in line with delivery for services and rateably over the term for
subscriptions. Year on year comparisons use the same quarter of the prior year and are not
adjusted for currency unless stated. Net revenue retention is measured on customers present at
the start of the comparison period. Headcount figures are full time equivalents at quarter end.
About this document
This is a sample template provided for reference and testing purposes. It is not legal, financial or
tax advice, and it has not been reviewed for any specific jurisdiction. Adapt the wording to your
own circumstances and have a qualified professional review it before use.
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