Quorum Announces Record Q3 2022 and YTD Results
November 23 2022 - 4:00PM
Quorum Information Technologies Inc. (QIS:TSXV) (“Quorum” or the
“Company”), a North American SaaS Software and Services company
providing essential enterprise solutions that automotive
dealerships and Original Equipment Manufacturers (“OEMs”) rely on
for their operations, released its results today for the third
quarter of 2022, ending September 30, 20222.
“We are happy to report record total revenue,
SaaS revenue and adjusted EBITDA for the third quarter of 2022,”
stated Maury Marks, President and CEO. “We are delighted that we
were able to achieve a record adjusted EBITDA of $1.7 million,
which equated to an adjusted EBITDA margin of 17% for the quarter.
Our focus on profitable growth has resulted in improved gross and
adjusted EBITDA margins. The cornerstones of our 2023 strategy will
be to pursue what is now a $55 million SaaS revenue cross-selling
opportunity while at the same time reducing our cost base. I would
especially like to acknowledge our employees and customers who are
the driving force behind our continued growth and drive to innovate
to ensure Quorum has a product suite prepared for the future of
automotive.”
Consolidated Results for Q3 2022 and
Year-to-Date
|
Q3 2022 |
% Change |
Q3 2021 |
|
|
2022 |
|
% Change |
|
2021 |
|
Total Revenue |
$ |
9,854,062 |
|
7 |
% |
$ |
9,201,600 |
|
|
$ |
28,952,623 |
|
8 |
% |
$ |
26,830,594 |
|
SaaS Revenue |
$ |
7,013,373 |
|
|
$ |
6,550,233 |
|
|
$ |
20,635,150 |
|
$ |
19,080,067 |
|
BDC Revenue |
$ |
2,595,945 |
|
|
$ |
2,426,275 |
|
|
$ |
7,775,231 |
|
|
$ |
6,999,100 |
|
Recurring Revenue |
$ |
9,609,318 |
|
7 |
% |
$ |
8,976,508 |
|
|
$ |
28,410,381 |
|
9 |
% |
$ |
26,079,167 |
|
Gross Margin |
$ |
4,857,845 |
|
13 |
% |
$ |
4,307,880 |
|
|
$ |
13,980,521 |
|
16 |
% |
$ |
12,093,433 |
|
Gross Margin % |
|
49 |
% |
|
|
47 |
% |
|
|
48 |
% |
|
|
45 |
% |
EPS (Loss) |
-$ |
0.005 |
|
|
-$ |
0.002 |
|
|
-$ |
0.017 |
|
|
-$ |
0.010 |
|
Net Loss |
-$ |
393,095 |
|
-173 |
% |
-$ |
143,930 |
|
|
-$ |
1,246,452 |
|
-79 |
% |
-$ |
696,103 |
|
Adjusted EBITDA |
$ |
1,703,420 |
|
17 |
% |
$ |
1,451,712 |
|
|
$ |
4,005,741 |
|
4 |
% |
$ |
3,846,083 |
|
Adjusted EBITDA Margin |
|
17 |
% |
|
|
16 |
% |
|
|
14 |
% |
|
|
14 |
% |
Adjusted Cash Income3 |
$ |
1,129,768 |
|
56 |
% |
$ |
726,303 |
|
|
$ |
2,000,660 |
|
13 |
% |
$ |
1,766,037 |
|
________________________1 Adjusted EBITDA
(non-GAAP) – Net income (loss) before interest and financing costs,
taxes, depreciation, amortization, stock-based compensation,
foreign exchange gains and losses, one-time acquisition-related
expenses and restructuring fees.2 Financial references are
expressed in Canadian dollars unless otherwise indicated. Please
refer to the MD&A and Financial Statements posted onto SEDAR
related to non-IFRS measures and risk factors.3 Adjusted Cash
Income (non-GAAP) – Adjusted EBITDA less capitalized salaries and
overhead.
Third Quarter Results
- Total revenue increased by 7% to
$9.9 million in Q3 2022 compared to $9.2 million in Q3
2021.
- Recurring SaaS revenue increased by
7% to $7.0 million in Q3 2022 compared to $6.6 million in Q3 2021,
which also translates to Q3 2022 Total Annual Recurring SaaS
Revenue (“ARR”) of $28.1 million.
- Recurring services revenue (“BDC”)
increased by 7% to $2.6 million in Q3 2022 compared to $2.4 million
in Q3 2021, which also translates to Q3 2022 Total ARR from BDC
services of $10.4 million.
- Recurring revenue was 97% of total
revenue for the quarter compared to 97% reported in Q3 2021.
- Gross margin increased by 13% to
$4.9 million and 49% of total revenue in Q3 2022 compared to $4.3
million and 47% of total revenue for Q3 2021.
- Adjusted EBITDA increased by 17% to
$1.7 million in Q3 2022 as compared to $1.5 million for Q3
2021.
- Adjusted EBITDA margin was 17% for
Q3 2022 as compared to 16% for Q3 2021.
- Adjusted Cash Income increased by
56% to $1.1 million in Q3 2022, or 11% of revenue, as compared to
$0.7 million for Q3 2021, or 8% of revenue.
SaaS-based dealership rooftops are as
follows:
|
Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Dealer Rooftop Count - Canada |
904 |
920 |
923 |
1,343 |
1,350 |
Dealer Rooftop Count - US |
128 |
125 |
116 |
116 |
114 |
Dealer Rooftop Count - Total |
1,032 |
1,045 |
1,039 |
1,459 |
1,464 |
MRRPU |
$2,116 |
$2,105 |
$2,124 |
$1,600 |
$1,597 |
Monthly recurring revenue per unit (“MRRPU”)
implies that, as of the end of Q3 2022, each dealership (“Dealer
Rooftop”) represents approximately $19.2K of SaaS ARR. Q3 2022
MRRPU decreased, as compared to Q3 2021, due to the addition of
rooftops as a result of the Accessible Accessories acquisition.
Q3 2022 Business Highlights
- In September 2022, Quorum announced
that that it had signed a definitive agreement to sell the
Advantage Complete DMS software. Highlights of the sale and wind
down included:
- Sale of software and grant back
license agreement for a nominal fee
- Reduction in SaaS revenue from
independent dealers of $0.1 million annually
- Reduction in expenses of $0.2
million annually
Quorum Q3 2022 Results Conference Call
Details and Investor Presentation
Maury Marks, President and Chief Executive
Officer and Marilyn Bown, Chief Financial Officer will present the
Q2 2022 results at a conference call with concurrent audio webcast,
scheduled for:
|
Date: |
Thursday,
November 24th, 2022 |
|
Time: |
11:00 am MT |
|
Dial-In #: |
Toll-Free North America: 1 (888) 660-6411 |
|
Webcast Link: |
Quorum Q3 2022 Results Conference Call (Webcast) |
The Q3 2022 Results Investor Presentation, a
replay of the conference call and a transcript of the conference
call will also be available at www.QuorumInformationSystems.com
About Quorum Information Technologies
Inc.
Quorum is a North American SaaS Software and
Services company providing essential enterprise solutions that
automotive dealerships and Original Equipment Manufacturers
(“OEMs”) rely on for their operations, including:
- Quorum’s
Dealership Management System (DMS) called XSellerator,
which automates, integrates, and streamlines key processes across
departments in a dealership, and emphasizes revenue generation and
customer satisfaction.
-
DealerMine CRM, a sales and service Customer
Relationship Management (“CRM”) system and set of Business
Development Centre services that drives revenue into the critical
sales and service departments in a dealership.
-
Autovance, a modern retailing platform that helps
dealerships attract more business through Digital Retailing,
improve in-store profits and closing rates through its desking tool
and maximize their efficiency and CSI through Autovance’s F&I
menu solution.
-
Accessible Accessories, a digital retailing
platform that allows franchised dealerships to efficiently increase
their vehicle accessories revenue.
Quorum Information Technologies Inc. is traded
on the TSX Venture Exchange (“TSX-V”) under the symbol QIS. For
additional investor information, please visit
www.QuorumInformationSystems.com.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Daniela Trnka Investor
Relations 403-777-0036 Daniela.Trnka@QuorumInfoTech.com
Forward-Looking Information
This press release may contain certain
forward-looking statements and forward-looking information
(“forward-looking information”) within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but
not always, identified by the use of words such as “anticipate”,
“believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”,
“estimate”, “expect”, “may”, “will”, “project”, “should” or similar
words suggesting future outcomes. Quorum believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, which may cause Quorum’s actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking information.
Quorum has filed its Q3 2022 unaudited condensed
consolidated financial statements and notes thereto as at and for
the nine months ended September 30, 2022, and accompanying
management and discussion and analysis in accordance with National
Instrument 51-102 - Continuous Disclosure Obligations adopted by
the Canadian securities regulatory authorities.
Quorum Information Technologies Inc. is traded on the Toronto
Venture Exchange (TSX-V) under the symbol QIS. For additional
information please go to www.QuorumInformationSystems.com.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) has reviewed this release and
neither accepts responsibility for the adequacy or accuracy of this
release.
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