Good morning, everyone. It's finally time, another quarterly result presentation. It's Q3. My name is Sten Kirkbak, CEO and Founder of Xplora. With me today, our CFO, Mikael Clement. Jointly, we will guide you through this presentation today. We'll divide the presentation, as always, into three sections, where first I will give you an overview, high level of the company and the development. Then Mikael will go through all the financial details, and I will end with the outlook and what's to come in the coming months. Of course, after that, we will have a Q&A session. Let's dive straight into the key summary of Q3 2021. High level, it's another quarter with EBITDA in black numbers, and we have had a strong sales growth, with rising share of recurring service revenue, and we have also widening our gross margin.
We have onboarded 13 new employees, this in order to deliver our ambitious plans for 2021, plus of course also setting the stage for a planned further growth into 2022. We have successfully revamped the foundation of our platform and service value proposition, which will be important in Q4 and into 2022 to increase the focus and service revenue share. High level, our group revenue is up 135% year-over-year to NOK 108 million. We have increased our gross margin to 49%, up 43% from previous quarter, and our recurring revenue now represent NOK 30.4 million. Before we go into more details of this third quarter, I would like to recap on the company strategy, also in particular for our growing new audience.
Xplora is leading the way in this rapidly growing industry, and we were founded with a mission to give children a safer and better onboarding to digital world. Also, we have a very ambitious vision in order to enable children around the world to experience how their everyday life and activity can make a positive change and impact to the world. What we see is becoming more and more important, and also why our value proposition is resonating so strong, is that we're actually onboarding the future generation into the digital world by allowing kids to have their first smart watch in a form factor of a mobile device. We provide them with their first ever mobile subscription, and also onboard them to their first digital ecosystem, and now also in Q4, the digital payment services. I would also like you to...
I would also like to take you through a little history recap in three slides to see how much the company have evolved over the last couple of years. When we launched the company back in 2017, and all the way from 2017 into 2020, our core proposition was a smart watch with a key set of basic feature. Basically, we sold a smart watch for a price point typically between NOK 119 and NOK 169, with a contribution roughly around 30%. We focused on selling smart watches with the ability to make phone calls, messaging, location, SOS, and so on. From that point, we have evolved the company into also then including Xplora Connect services, meaning that all smart watches we are selling from online and retail, we are now enabling the opportunity to activate our own SIM card.
Huge success in the Nordic market with our own MVNO setup, and now also expanding that, those services into the global market with our own connectivity services. That means that going from only selling smart watches with some contribution on that hardware, we are now adding as much as EUR 300 in recurring revenue on our services that we are adding on top of it. That was our biggest involvement during 2021. In the future, we'll now also extend our service proposition to add premium services. From going to focusing on hardware sales, adding SIM recurring revenue, from now going forward, we are also adding the ability to upgrade the services to premium services, again allowing us to increase the service revenue on roughly 100 or expected 100 EUR, potentially to be even more.
That just summarizes the evolution of the company, transitioning from a hardware or smartwatch-focused company, increasing to add service revenue from SIM connectivity, and now into the future, also adding the opportunity to add additional premium services. I would now take you through some of the key highlight from operational point of view during Q3. Just to take a step back and see the accomplishment in some of the first markets, starting with the Norwegian market. That was the first market we launched in. We have the longest experience here, starting from 2017. If you look at it from a big picture right now, almost one out of five kids in the age group four to ten is now a user of an Xplora smartwatch. Not a smartwatch in general, but actually of a smartwatch delivered from Xplora with Xplora SIM connectivity.
16%, almost reaching one out of five kids. An interesting point, as we can see on the next slide. Is that we have from day one been extremely data-driven to build models that are scalable and replicable. That means that also if you look into the Nordic penetration, we are currently reaching 5%+ by adding the same go-to-market strategy, the same principle as we started with in Norway. Going into one of the larger European markets such as Germany, we are also seeing the same trend in how we are increasing our penetration, how we use our go-to-market strategy with retail and with telco, and now reaching 2%+ of the population in the German market, again, between 4%-10%.
We are now also then starting to get data from our MVNO and mobile solution in the Nordic, seeing that we roughly have a lifetime value of EUR 300+ and an average currently 30 months of the subscription. Globally in our European market, we are still keeping a historical low acquisition cost for the industry with roughly EUR 20 per acquired customer. Some extremely strong KPIs and performance number. Again, being a data-driven company, we are building models so we can replicate and scale into new market when we are growing. A little bit more on the operational highlights. We feel very comfortable moving into 2022 with a very strong foundation as well as great momentum.
To divide some highlights into four categories, when it comes to the product development, we have successfully launched our XGO2 product with SIM included into the US market, a key milestone for the company to be able to deliver that in the US market. We have also developed core elements of our Voice over IP solution, enabling us to sell product with connectivity, utilizing Voice over IP, again, to potentially reduce the cost and increase the margin on that value proposition. We have roughly 18-month life cycle on our product, which means that we successfully have come quite far in the development of the next generation product of XGO2 and X5 to be launched in 2022. On the service side, we have increased our mobile subscriber base from 94,000 to 111,000 paying subscribers in Q3.
Also on our platform side, we have won a global award for our Goplay ad platform with its value when it comes to creating advertising value for our partners. We have also finalized several components on the platform and licensing module, which will be a key part of how we'll generate revenues on our platform in 2022. Also, at the end of the presentation, we'll tap more into that. We have launched a very exciting campaign with UNICEF Kid Power primarily in the US market, which I also will showcase later in the presentation. A very key milestone as well on the service side is that we have completed our platform to be hardware agnostic, meaning that third parties can join and onboard our platform. It no longer has to be Xplora watches, but any other hardware device or any other hardware devices.
On the business side, we have onboarded 30 new team members, so the team now is a total of 19 people. Also, in order to keep track of the growth, making sure that we have a healthy and efficient growth, we have also started the implementation of agile organization and new structure into the company, making sure that we are really utilizing on the people we are onboarding, being more efficient. We have also launched a brand new global e-commerce solution with UK and US the first market to launch the new site. On the distribution side, we have just managed to be more than 80 global retailers going into Q4. We have had some big wins during Q4 as well, such as Aldi Nord, Media-Saturn in Germany, Clas Ohlson here in the Nordic, as well as Vodafone Hungary.
The list is even larger than that, but we have highlighted some of the largest new retailers. It's very important to comment that we also have throughout Q3 worked extensively with multiple telcos, both in Europe and US, which we're hoping to progress further in Q4 and into Q1. To paint a picture of the broad footprint, and again, as we have said previously, if you divide into the market opportunity, 20%+ will probably come from online sale, 30% from retail, and 50%+ from the telco industry. That means a company like us and the ability for us to grow and scale, a key part of that is to have the broadest and most powerful distribution, retail, and telco footprint in the industry. Now we are in 22 global markets.
More than 80 retailers, different retail brands are distributing our brand. Currently we have successfully been through homologation, meaning that our product is sold with more, or with 8 different global telcos as well. With that introduction, I will leave Mikael to take you through the financial highlights from third quarter.
Thank you, Sten. Starting out with revenues for the third quarter of 2021. Total revenues, group revenues were NOK 108 million, up 135% from the same period last year. Recurring service revenues stood at NOK 30.4 million in Q3, representing 28% of group sales, up 23% from NOK 24 million in the second quarter. The underlying drivers, first of all, mobile connectivity in the Nordics. We increased our subscriber base from 94,400 subscribers at the end of Q2 to 110.7 thousand subscribers at the end of Q3. Given the population in the Nordics in our target segments of kids aged four to ten, this represents in excess of 5%. Our subscribers are in all four Nordic countries where we have MVNO operations.
70,000 of the subscribers are in Norway. That market that we've been in the longest represents 16% of the children in the age group, followed by Sweden with 28,000 mobile subscribers, Finland with 10,000, and Denmark with the shortest history with 3,000 mobile subscribers. All markets continue to grow. We are seeing very interesting tractions really in all four markets. The next sales driver is naturally our sales of smartwatches. As highlighted in our trading update early October, we sold 89,000 units in Q3 2021. Growth of close to 90% from the same quarter last year. Our year-to-date growth in unit sales is 129% over the same period last year.
Looking at geographic sales, divided first of all into devices, Germany is our largest market and the largest market in Europe, for device sales, followed by strong sales also in the Norwegian market and, further in Sweden. Services, representing 28% of sales, our Norwegian market comprises the largest share of our service sales, followed by Sweden and, Finland. Overall, group revenue is NOK 108 million. 45% of that came from the Norwegian market, comprising then both service sales and devices, followed by Germany at 29%, so far primarily devices, and then Sweden at 15% of group sales. Big picture in Q3, over the same period last year, revenues up by 135% year-over-year to NOK 108 million.
Gross margins widened from close to 28% in Q3 last year to 49% in Q3 this year, and is also up sequentially from 43% reported in Q2 2021. This means that our gross earnings are up by 318%, year-over-year. Our operating costs are up from 14.4 to 53 million NOK. I'll come back to the details on that, resulting in an increased EBITDA from -1.7 million NOK last year to +0.1 million NOK in Q3 2021. We have highlighted this slide before. We have a strong focus on driving scalability in our operations. We're trying to drive scalability in sales. We are working on driving scalability in gross profitability, and we will also continue to try to drive scalability in underlying operations and earnings.
From a sales perspective, our four-quarter rolling revenues are now at NOK 364 million, up more than 200% from the same period last year. Our four-quarter rolling gross profits are up sharply from NOK 111 million last quarter to NOK 152 million this quarter, with the corresponding margin at more than 40%. We continue to drive an underlying positive trend in underlying EBITDA, adjusted at positive NOK 16 million for the last four quarters, up from NOK 14 million in the previous quarter. Moving into the P&L for Q3. Group sales, as mentioned, NOK 108.0 million, up 135%, with recurring service revenues up 1,340% to NOK 30.4 million, representing 28% of group sales.
Smartwatch sales in Q3 was up 87% to NOK 77.6 million. Gross margins at 49.2% versus 27.7% in the year earlier period, also up from close to 43% in Q2. Group OpEx came in at NOK 53 million. This is derived from NOK 21.6 million in payroll expenses, driven by the increase in headcount. Other operating costs of NOK 31.4 million includes close to NOK 13 million in marketing expenses this quarter. EBITDA at NOK 0.1 million, up from a loss of NOK 1.7 million in Q3 2020. Depreciation and amortization is NOK 9.9 million in Q3. We have, during the quarter, revised our goodwill amortization schedule from previously five years to 10 years.
We have restated Q2 as a result of this, and therefore our D&A is lower than what we reported for the second quarter. Net financial income is at 0.5, resulting in pre-tax earnings of NOK -9.3 million. Looking at the year-to-date figures. Group sales are reported at NOK 255.4 million, representing a growth of 222% year-over-year. Recurring sales are up by more than 1,000% to NOK 57.9 million, representing 23% of group sales. Smartwatch sales are up 128% year-to-date at NOK 197.4 million. Our gross margin year-to-date is NOK 43.9 million, close to doubling from the same period last year. Group operating costs year-to-date NOK 121.4 million.
EBITDA is -NOK 9.4 million for the year to date figure, versus a loss of NOK 17.2 million same period last year. Depreciation and amortization, -NOK 20.3 million, resulting in a profit before tax of -NOK 31 million for the first nine months. Moving on to the balance sheet in Q3. Total assets, minor changes, is NOK 543.1 million, up from NOK 539.2 million at the end of the previous quarter. Total financial fixed assets is NOK 256 million, comprising of goodwill, customer contracts from the acquisition of Xplora Mobile Holding in Q2. As mentioned, Q2 2021 goodwill has been restated to NOK 179.3 million from previously reported NOK 174.7 million on a revised goodwill amortization schedule.
Group accounts receivables stood at NOK 47.4 million, down from NOK 66 million at the end of Q2. Group inventories stood at NOK 93.8 million, up from NOK 40.9 million. Drivers are seasonality moving into Q4, the supply chain constraints that we've been facing for longer periods of time, and a delayed entry into the North American market, as previously communicated. Cash at the end of Q3 stood at NOK 113.8 million. Other short-term liabilities were NOK 99.8 million, which includes an earn-out provision of NOK 20 million from the acquisition of Xplora Mobile Holding. The remainder comprises prepayments from higher subscriber base in the Nordics and factory orders with delivery in Q4.
We have NOK 30.5 million in interest-bearing loans at the end of the quarter and total equity at NOK 388.6 million for an equity ratio of 71%. Finally, the cash flow. Cash from operations during Q3 stood at NOK -21.9 million in the quarter. Cash earnings slightly on the positive end, offset by a net working capital change of NOK -22.5 million. This comprised of rising inventories and other receivables, which were offset by lower accounts receivable and higher accounts payable and other short-term liabilities. Cash from investments this quarter was NOK -2.8 million, which stems from capitalized development expenses.
Cash from financing, NOK -5.6 million on down payment on credit facilities, which yields a net change in cash and equivalents of NOK -30.2 million, ending the quarter with NOK 114 million in cash balances. With that, I would like to give the word back to Øystein for some comments on the road ahead.
All right. Let's try to look into the future or at least the coming months ahead. In order to do that in a proper way to make sure everyone can follow and understand our strategy and also how we see to evolve the company, I would like to take you through this slide, which we previously have showcased as well. Overall, our company currently, or we have defined four different revenue streams. One, of course, is from selling smartwatches, which currently have roughly 30% gross margin. Then we have connectivity, as we also presented, representing roughly EUR 5 per month or more with a gross margin of 50% roughly. The addressable market is units sold via retail or online markets.
We have our premium services that we will introduce, also representing roughly EUR 5 per month, give and take from market to market, estimated gross margin from 70%+. The addressable market on our premium services is of course, not only retail and online, but potentially also every single unit that is sold via the telecom market. The fourth revenue stream come or will come from third-party licensing, where our platform can be used for other partners. Also representing gross margin of estimated 50%+. The addressable market is of course, outside every single unit that is sold with Xplora smartwatch. So every other units potentially can leverage on that.
To quickly take you through where we are on the various services, as we initially said, when it comes to smartwatches and connectivity, every single watch now into the future that is sold from online and retail channel will be bundled with a Xplora Connect SIM card. The full value proposition on this product and service will be number one, the Xplora Guardian App with access to our IoT and basic services. Also in the application, there will be access to Goplay and Arcade basic services. Also, with the watches, we will continue to have the strategy of having an entry-level product at a roughly price point average at EUR 119 and a premium model average at EUR 169.
On top of that, it's pre-installed with Xplora Connect SIM card, where you either can choose pay-as-you-go plans or 12- to 24-month subscription. That's the three elements in the smartwatch and connectivity strategy. Again, targeting annual recurring revenue service from NOK 60-NOK 120, depending on which market you are in. What we are now extending to provide and launch into the market is our freemium strategy with the objective to increase or upgrade most possible of our users to our premium products. The foundation of the premium product is starting with the free Xplora Guardian App. As we said, all watches that are sold will come with access to our Xplora app with the basic IoT and application services. On top of that, there will be some of the basic services from Goplay and Arcade.
Then you can upgrade to Xplora Premium. Premium consists of three various solutions. Number one is the Xplora Pay service, where we are reintroducing digitally the pocket money solution for kids to earn their weekly allowances. Plus, you will also be able to use and receive your own first debit card, specially designed for kids. Eventually, you will also be able to use the watch to tap and pay. In addition to the Xplora Pay service, we will also select some of the biggest and most premium titles for Go Play or from Go Play, plus some additional application, competition, and other content services from Xplora Arcade. Our premium offering will be a combination of Xplora Pay, some selected titles from Go Play, plus some selected application and feature from Arcade. That will summarize the premium service.
Again, with a target annual recurring service revenue from NOK 60-NOK 120, again, depending on the market. As we announced previously, the objective was to launch these services in the second half of this year. We have been delayed in our two markets, Germany and Norway, which were our two first markets. For obvious reasons, starting with Norway, we have the largest user base. We already have our SIM subscription. It's where we can introduce the service to get the most data and feedback from the market. Of course, also in the German market, which is the biggest global and European market we have. We're happy to announce that we are now launching the campaign with Xplora Pay in the Norwegian market, and we look forward to provide additional insights in that launch.
That's the three first revenue streams from the product itself, the smartwatches, the SIM connectivity, and the premium services. The fourth, an extremely exciting revenue stream, come from our third-party licensing opportunity from the platform. Also, it's additional reason to focus a lot on this fourth revenue stream because this also is one of the biggest opportunity allowing us to scale our user base outside our own sales of smartwatches. Now, we have divided the strategy for the Xplora IoT and Goplay platform and licensing opportunity into five different modules, where we have our Xplora business-to-business or business-to-consumer SaaS module. We have our business-to-business licensing module. We have developed our own sport module. We have Xplora ESG and United Nations module, as well as we are currently also developing Xplora Studio module.
We will release more information on these five modules in the coming time. I would like to take you through three very concrete examples on how we can monetize and how we have implemented these building blocks from our licensing strategy. Starting with the first, which is our ESG module, also something that makes us extremely proud to work in Xplora and also is something that has become one of our most efficient marketing tool for our target group.
We just announced and have just released multiple partnerships with United Nations as well as UNICEF Kid Power. What we see is the power when we allow kids to help other kids in needs. The recently launched campaign was with UNICEF Kid Power, a campaign where we have the objective to provide clean water to 4,000 kids for one year to collect the equivalent of 10 million bottles of clean water. This is all made possible for kids in all parts of the world to take one step and walk more and more and move more and more, and use their own activity to help other kids in need. It's been a huge success. The activity level has outperformed initially several of our other campaign. When kids see that their activity, their action can have a huge impact.
Very efficient, as mentioned, on marketing, but what we are also seeing is that the increased inbound request from other companies to use our platform, to use our activities, to use our established partnership within sustainability is increasing because companies would like to use our platform, number one, to have their own employees move more, but also to have their employees to take an active part of the company's sustainability and ESG strategy. Basically, a company can use our platform to allow every single employee to take action into a sustainability program. On top of that, they will also move more, so it's a clear health benefit. It's a program, it's a module that we see huge opportunity in the years to come. The second module I would like to emphasize and present to you today is our new sport module.
We developed that in close partnership with our first partner being Benfica. Benfica is a football club with more than 50 million loyal fans worldwide. Of course, sport is a huge industry, and the sport in general resonates with families and kids all over the world. If you envision and picture yourself this graph, if you take football, if you take baseball, if you take basketball and all these big industry within sport, and you divide it into all our 20+ country, for us, it's a huge opportunity to grow this outside football into multiple sport and replicate the model with Benfica into multiple countries, territories with different sport industries. The campaign we're launching with Benfica, it's a special edition watch where we have optimized the software and the firmware to be more adjusted toward a Benfica proposition.
It's a special redesign on the packaging you can see, and also it's an activity campaign that will emphasize our fans as well as the Benfica fans to join the campaign to win special products signed uniquely for the Benfica fan group. We're launching this as we speak. We are expecting very exciting results and engagement on these campaigns. Once we have finalized the Benfica campaign, the module is ready to scale into different sports industry and of course, also different markets. The third example I would like to showcase to you from our licensing platform today is our B2B licensing module. Primarily, this module is designed toward two different opportunities. One is every single IoT product or every single smartwatch company in the world that would like to utilize and use our IoT platform, which is already GDPR compliant. We have built it over many years.
It's one of the most robust and efficient and feature-rich IoT platform for smartwatches to date. We can offer that to third party that would like to license our platform and launch into interesting new markets. The other category we're gearing this platform toward is the telcos. For a telco, it gives them a great opportunity to onboard a mobile subscriber earlier than the typical smartphone, have several years with revenue from the mobile subscriber on our smartwatches, create a lot of content and loyalty and stickiness with that customer over two, three years using the smartwatch, and then extend that user into the first years with the smartphone. Being able to have the same phone number, have all your images or every single content that is developed, and just transform that into the smartphone. That way you can really extend the lifetime value.
The first customer in the Nordic market was recently announced by Telia, and we have done several integration with Telia on our licensing module. They are carrying our product, distributing and selling our product within the Telia distribution network. As you can see on the screen, we have also integrated our Xplora platform with the Telia platform with their smart family services. That means that a family using the Telia proposition, using the Telia services on their smartphone, multiple smartphones within their family, now also can get all the data and insight from the Xplora platform directly transparent or presented within the smart family service in the Telia app.
Again, as you can see on the screen, not only can you now see the other smartphones within your family, you can also see the devices from Xplora in the same family service. A very important win in the Nordic market with the integration with Telia. Also within the Telia proposition, every single watch that is sold in their market comes already with a 24-month pre-installed licensing module with our Goplay service to increase and extend the service offering in the Swedish market when it's sold via Telia. A very, very important win and a very exciting module from our platform. With my introduction, as well as emphasizing on those three examples, I would also like then to summarize what we believe will be the future for Xplora from this chart.
If you go back to what I said 2017 up to 2020, Xplora was primarily a company selling leading smartwatches into this growing category. Again, as you can see on the green chart to the or the green symbol on the left, you can see roughly what the contribution from selling a watch represented in the market. Extending into 2021, bundling with connectivity with our smart or Xplora Connect SIM card, we have 7 times increased the contribution per sold unit when activating with Xplora Connect. MVNO solution in Nordic already been a huge success. Now replicating that model to launch into our multiple global markets. 7 times increase on the contribution for each sold unit. Roughly, we're estimating 30-36 months of lifetime in this connectivity offering.
When we're now also adding the premium services, it's two reasons for the importance of that proposition. One is that within those three years using the Xplora smartwatch, we can increase the revenue per user by upgrading to premium service. However, it's also important over those three years to make sure that the user will add a lot of content, images, integration, memories, activating the premium service like the Xplora Pay, the first bank account, your debit card, all these services that the family and the kid would like and love to use. Because that gives us this opportunity to further extend the lifetime of our services with the objective that once the children or once the kids come to the age of nine, ten, eleven, and are buying their first smartphone, then it allows them the opportunity that they would like to continue to use these services.
Meaning that when you get your first smartphone, I would not like to terminate my already first bank account, my already first phone number I've started to use this. All the images, memories, and connections you have done on those three years using the smartwatch. That allows the company to transition from having a one-off sale with a smaller, low 30% margin on selling smartwatches. Seven times increase that by adding connectivity. Now potentially increase the lifetime value to six years introducing the premium services. Hopefully this image will give you overview on the evolution and development on the company strategy. Also, I would like to use this last slide to summarize, a graphic overview on where the company is in the various markets.
We have made a graph that summarizes our go-to-market strategy that has always been divided in three phases, from online focus, extending to retail, and then scale with the telco. Also what kind of phases we have learned that the market is related to penetration from introduction, establishment, the growth phase, where we really can accelerate and have a high return on investment, and into the area where we all would like to be to really scale when we are crossing the chasm, when you are extending the penetration that adds both the innovators and early adopters and go into the early majority of the market, then really interesting thing can happen. If you look into some of our selected markets we are currently in, you see still some are big. For example, North American market, we have just announced, we have just launched online.
We are in a very early introduction phase. We have some core markets in our European markets where we have moved that forward, and it's currently into the retail phase, where we have gone from establishment into early growth phase. The interesting thing is when you go farther to the right, you see in the markets where we have been able to add the telcos, where we also come from the establishment in the early growth phase, we are going more and more into the acceleration phase. That's the time where we see that in the stores, there are proper training. We have the proper organic sellout rate within the store because of training, because of all the investment we have done in store with point of sale, etc. Also, it's where we have optimized all marketing communication.
We know exactly how to drive home the value proposition to make purchases online and in retail. From that point, we can really invest more and more in marketing with a high return on those investments. Norway, as you can see, is the market we have come the furthest. Now some of the other Nordic market is also getting higher and closer to the Norwegian market. This gives you an overview on where we are in the various markets and what phases we have to come to. In order to really set in the next gear in order to scale. That's also, as you heard Mikael was saying, that we are still continuing to take marketing investment in some of these market in order to drive them to the next phase.
To summarize it all, to give you an outlook, it's extremely exciting times. We have a fantastic team that is truly engaged in what we're doing. This is not just a job. This is something every single employee really cares about. I would also like to say it's the only reason why we have managed to get as far as we have throughout a, for everyone, quite challenging year when it comes to logistics, when it comes to getting products, getting components and also some of the delays that has been in retail, in telcos. Now it's all getting together, which makes us extremely excited and positive about the future. I think I would like to highlight this into three key takeaways, why we are optimistic, very optimistic about the future.
We see that the market is still in a very early development, but with a rising adoption rate. It continues to grow. We also see that Xplora has managed throughout this year to broaden constantly our channels and our geographic footprint. We are extremely excited because we have developed a lot of services this year, and we have already started development on new product, and many things to be introduced now at the end of this year going into 2022. A lot of new product and a lot of new services. As we in our previous quarterly report update mentioned, we did see some potential concerns about a delay in decision-making in the US market. The primary reason was the delay of the full reopening, getting back to normal within retail.
As we have said in our category, retailers in the stores are a key driver for the volume. For that reason, we saw a concern in when the decision-making would be done. We are now setting up to establish our US offices in full, starting immediately after our CES attendance in January next year. We are optimistic for the opportunities and the partners we have been working on throughout this quarter. Also, of course, Xplora will continue to assess and manage the challenging market we have been in. We remain optimistic. We have handled it very well so far. Having this cash position we have had has allowed us to make sure we have sufficient stock. We have been in a position where we could have additional stock, so we have not been this uncertain about the development of this market.
Mikael reflected that on our stock position end of this year. Of course, following major investment in technology, organization, and operation in 2021, we also aim to deliver a higher operation leverage in 2022. Very optimistic on end of this year going into 2021 or 2022 with further growth. That's the presentation for today. We'll now go into the Q&A session. All right, you may now enter the question you might have in the question form below.
Let's see here, standing here, getting any questions. We have some on here now. First question, how many subscribers has the sale of Samsung phones contributed with?
Of the total user base or subscriber base currently at 111,000, the number from Samsung is currently insignificant in that volume. However, the important thing in this phase is for us to build the confidence and insights on how to transform smartwatch subscribers into mobile phone subscribers. That's the key reason why we initially now already launched the Samsung phone. During 2022, we will launch the full proposition, our new application to run independently on the smartphones with the objective to enhance the services that kids and youth can use the smartphones for. During 2022, we of course expect to grow the subscriber base also from smartphones.
Also, it's a key strategy for us to deliver that services to the growing demand from the telcos in order to use the Xplora platform as a onboarding tool, as a onboarding platform to gain from smartwatches towards the smartphones.
Can you please give an update on forecast for Q4 so far compared to last year? How many subscribers does Xplora Mobile has as we speak? In our trading update early October after Q3, and in this report, we have repeated that our sales processes in the US market have taken longer time than we initially expected, largely due to the situation around the reopening of societies, as we understand. That in our business case for 2021, US retail and telco sales were expected to comprise some around 20% our overall sales. Which means that our renewed target, revised target for the year is expected to be around 400,000 units.
As to how many subscribers we have, we will come back to the number of subscribers in our trading update early January for Q4. How many employees do you have as of now, and how does it break down on key functions?
As mentioned in the report, from Q2 to Q3, we grow the team from 77 employees to 90 employees. The key divisions within the company is of course within our engineering team. We are heavily investing in our engineering team, as we also mentioned in the report, due to all the services we launched and will launch in Q4 and into 2022. Furthermore, we also grow support based on the ongoing growth our user base. Next, large teams in the company is of course sales and marketing, which also are continuing to grow, as we go into new market and open into new market, both sales and marketing team is growing as well. Currently 90 employees.
Good. Another question here, what is the story in the US now?
Very important key question. As we mentioned also back from the Q2 report, we have had really from whole 2021, a lot of ongoing conversations with key of the major US retailers. As we reported, we saw a delay in decision-making, not due to the opening, but due to the point of when retail stores would get normal footfall and normal sell-outs from the stores. We reported a potential delay in that decision-making. However, we have also seen during Q3 that we are still in all the same conversation. We have not lost any single RFP or conversation we have been in, and we reiterate our communication that we remain very positive with those conversation, although it's delayed from Q3 closing, going into Q4 and potentially early into 2022. We remain very positive for the US launch.
As we also pointed out in the presentation, we will be attending within the CES in early January and will immediately from the CES start to build the team and establishment of the US division in January and during Q1.
Good. Do you expect the average price per device to go up or down over time or remain stable?
That's also very interesting question, and it's not a straightforward answer. One of the reason for this is, of course, the price sensitivity is different in the various markets. We are in many markets, as we pointed out, more than 20. We see a difference in price sensitivity. That's also why we have the strategy as one of the few, suppliers in this category to have both the entry level model as well as a premium market. That makes us a lot more flexible to meet the demand in the various market. That's also why we have reinforced in-investments with our Xplora Connect, as well as acquisition of Xplora Mobile with the MVNO. Because having a subscription to bundle with our product allows us also to be a lot more flexible on the price point due to the joint margin with both subscription and phones.
Mm.
That's also why we see a huge opportunity when there will come potentially more competitors. We see that in some markets as well, to be able to use not just our service and the product, but eventually also the dynamic of the price proposition in the market to continue to grow. We also see a huge opportunity to potentially even further scale our sales and volume, again, using price and initial pricing with 12 or 24 months subscription tied into the overall proposition. That becomes more and more a strength of the company, as well as we see or when we see the development on the price point in the market.
Yeah. Good. Do you have enough stock to support Christmas sales? Very short answer to that is yes. Yeah, moving in new questions here. Can you give some background regarding the restatement for Q2 in terms of depreciation and amortization? Yes. When acquiring Xplora Mobile Holding in Q2, we had an independent party conduct a purchase price allocation. In that, and as we stated in our Q2 report, that purchase price allocation in a balance sheet was preliminary. We have continued to work on that. One of the initial factors was that we had an amortization of the goodwill initially at five years. We've come to a conclusion that 10-year amortization of goodwill is more appropriate.
That's the background for that change. Let's see here. Can you repeat the sales success in Germany in other large E.U. markets like the UK and Spain?
The answer is yes, because we have built this very scalable and replicable model. That's also the reason why we included this one slide in particular in our presentation, so that our investors in the market can follow where we assume to be in each of the various market, where we go from online retail scaling then with telco. Both for the Nordic market as well as Germany, we see a huge acceleration when we have both online retail and a strong telco partner present. That's also why we have emphasized in this presentation and in the report that we look into the strategies for the telco to be very important, and also why we laid out this graph or this chart in the presentation to show you where we are in the different market.
That's why in the particular markets you mentioned, like UK and in Spain, our main objective now is to secure this strong telco relation so we can further scale our position in those market, now having been quite successful online and retail, and then to plug in a strong telco partner and continue to scale the sales, repeat the same results we have seen in the Nordic as well as in Germany.
Are there any M&A opportunities out there? I guess we can certainly say that. I mean, we are in a market in very early development, and Xplora has taken a leading role in establishing market presence, establishing channels, and developing not only a very strong product portfolio, but a number of very important platforms and services that together comprise a comprehensive value offering. We certainly see. I mean, the acquisition of Xplora Mobile Holding in Q2 this year was strategically very important for Xplora. We're very happy with joining forces with a great team in Xplora Mobile. We see a lot of developments.
We are staying very active in trying to follow the developments and certainly see further M&A as a potential growth path, complementary in terms of technology, gaining access to markets, or widening our footprint in terms of services. Will the quarterly reports be closer to end of quarter next year? We are working on the financial calendar for 2022, and we certainly have that ambition. When we were listed in November last year, we had a few weeks coming from a very young, immature company thrown into Euronext Growth. We had to give ourselves the leeway to make sure that when we went through 2021, that we had good quality on our reports once we released them.
As we now gain experience, the ambition next year is clearly to come out with our quarterly reports somewhat closer. Having said that, we do release trading updates immediately following a quarter to give the investor market timely information and some key numbers for the quarter that we just passed. Do you perceive the current competitive environment and Xplora's position?
Very relevant question as well. I think what we have observed is, of course, the market in general is now really starting to grow. The trend has been a little different from typical technology trend in general because it started in Asia, then it moved along to Europe, and now it's expected really to grow in US Normally, US start earlier. As we have mentioned previously report as well, we have seen two, three to five competitor in each market. We are now seeing more competitor, and we are expecting more competitor to come as well. However, what we are seeing is that most of the competitors out there still remain very focused on the hardware, on the smartwatch itself.
Given a lot of the very good question that we have already received related to price mechanism, the service proposition, et cetera, we see that still our very strong value proposition and competitive advantage is the combination of both good hardware and smartwatches in different price points. The service proposition that allows both ourselves, the retailers, and our partners to increase the revenue and margin, plus also, of course, the subscription on top of it. We have a very strong position, but we see the market is growing, and we expect more competitors to come. I think it's fair to mention that the time to go into a market with a retailer and a telco typically is 6-9 months or even more.
That's why we emphasized in the report the depth of the number of retailers and telcos in the various market, which also from a time perspective still gives us a strong competitive advantage as well outside just the technology and services.
Good. Are you considering monthly trading updates? The board is continuously looking at how Xplora best can keep the market informed. This has been one issue that I know has been discussed. I think for any changes in the reporting intervals for Xplora, it's natural to see that from next year. I would not expect any changes this year. Are you aiming for the main list on the Oslo Stock Exchange? There has been no discussion on that issue so far. It's like will we see development in the very important B2B market going forward? Normal companies, not only telcos.
Short answer to that is hopefully yes. Again, also that's why we tried to lay out in the presentation how we have built our platform, and how we are expecting to monetize on it on those five various modules. That is the area we are building both team members' competence and business developers. We expect to be able to deliver on that during 2022. The answer is yes.
What about quality issues? What is the number or rate of customer complaints, or returns? As we addressed in this quarter, we've had some in Q3 slightly higher post-sales service costs than we've had previously, which has led us to renegotiate with our vendor to compensate for some of that. Costs in Q3 are somewhat inflated on this account. We're addressing it, and we will start seeing some compensation on this from Q4. Can you quantify your outlook for 2022 in terms of top-line drivers? Sold units, sold revenues, average price per unit, et cetera. We have not issued any guidance for 2022.
We have stated that we have ambitious growth targets based on a combination of strong growth in smartwatch sales in new and existing markets on a continuously stronger footprint in terms of channels and customers. On top of that, we are expected or expecting to show continued growth in mobile subscribers, not only in the Nordic region, but now also increasingly outside the Nordic region in various markets that we roll these services out. On top of that, we have now through 2021 developed a number of new services that we are going to bundle into premium services, gaining new revenue streams moving through 2022. All of those combined are expected to continue to drive strong growth in Xplora Technologies.
We have answered that. On getting components, have you had actual delays? How do you assess the risk of delays in the future?
That's kind of a two-fold question because I think the whole industry has experienced delays, so I think everyone has to definitely confirm on that. We have been in a very lucky situation that we have had very solid funding throughout 2021, so we have had this opportunity to work very closely with our manufacturing partners, increase the volumes we have ordered, and ordered earlier than we normally would have had. Delays have been there, yes, but we have also started planning a lot earlier with higher volumes. That's the reason why we have been able to secure units. That's also why we carry a higher stock as we speak, but it has put us in a situation to have units to sell.
We have done the same planning going forward as well, so we have been able to be on the positive side of all these delays. We are continuing to monitor it closely. We do not expect the situation to end as early as many of the most optimistic parties in the market, so that's why we are planning very carefully ahead of time, and for that reason feel quite comfortable on the current situation.
Good. I think we've gone through most questions, and we spent more than an hour, Sten, today.
Yeah.
Thank you very much for a lot of very good questions and for following us today.
We look forward to see you back again, for the next update, during February.