The recording of our meeting with Tim Levy is now on the meetings page and you can access the transcript here: Qoria Transcript.pdf

It's an interesting business that certainly seems to be going from strength to strength on the revenue front -- which has doubled in the last 3 years. Of course, a lot of that is to do with acquisitions and has meant a lot of share dilution. But they are tipping into profitability and, as Tim explained, they made the strategic decision to fuel growth via acquisition because they felt the opportunity to capture and secure market share would otherwise pass them by.

With the company presently going through the Aura merger, which isn't set to be completed until some time mid-2026, and with the usual need to bed things down, it may be a little while before we get a clean read on how it's all worked out.

Still, if you are of the view that the merger delivers most of what it claims to (such as a $55m cost out), there's probably an arbitrage opportunity. EG. if you use the implied equity value based on the scrip deal (which itself rests on a 6.6 ARR multiple), QOR should be valued at 72c or so, well above the current price of 30c. The market is obviously skeptical, but therein lies the opportunity i guess.

Here is an AI-produced summary of the meeting:

Interview Summary: Qoria (ASX: QOR)

Business Overview & Technology

• Core Mission: Qoria is a global provider of online safety and student wellbeing services, protecting roughly 30 million children across 32,000 schools.
• Product Suite: The company uses a "hybrid architecture" that includes browser extensions, mobile apps for parents, classroom management tools for teachers, and hardware appliances for school networks.
• Unique Selling Point: Unlike competitors who focus only on one area, Qoria offers an integrated "ecosystem" where schools and parents can collaborate on a child’s digital safety. They are currently the only player offering a seamless handoff between school and parental control.

Market Dynamics & Growth

• US Expansion: Qoria has captured 20% of the US student market in just five years, driven by a shift toward account-based marketing and targeting "lighthouse" school districts.
• Sales Strategy: The business leverages a "Trojan Horse" entry point by selling compliance-based filtering to Chief Technology Officers (CTOs). Once a trial is established, they see a 85-90% conversion rate.
• Regulatory Drivers: Demand is heavily fueled by legal requirements for schools to protect students, such as CIPA in the US and "Keeping Children Safe in Education" in the UK.

Acquisitions & Integration

• Strategic M&A: The company has grown significantly through acquisitions, most notably Smoothtool in 2021. This allowed them to "speed run" development and market capture.
• Unification Progress: After previously struggling with fragmented code bases, Qoria now has a dedicated unification team focused on integrating their various products into a single user interface and platform.
• Aura Merger: Qoria is currently undergoing a merger with the Aura Group. The merged entity is expected to list on the ASX in June under the code XQ, with Aura providing a $75 million USD capital injection.

AI Opportunities & Risks

• Filtering Stability: Management views AI more as an opportunity than a threat. They believe startups cannot easily disrupt the "high-trust" compliance market where schools require long-term reliability and risk transfer.
• Classroom Disruption: The biggest long-term question mark is classroom management. If classrooms become entirely AI-driven, the company is working with regulators to ensure they have interoperable access to monitor and moderate those environments.

Leadership & Outlook

• Founding Vision: The business was inspired by the personal experiences of the founders with family-related mental health and bullying issues.
• Management Transition: Following the Aura merger, Tim Levy will serve as Managing Director, while Aura’s founder will transition to Chairman.
• Financial Inflection: The company currently has over $100 million USD in annualized recurring revenue (ARR) and is reaching a point of free cash flow generation.