Management Commentary
“We’ve recently begun to experience stable growth, a testament to the successful implementation of our strategic cost-cutting and disciplined management,” said
“Yesterday’s announcement of the sale of PayiQ is a significant next step in our payments solutions business as we execute a revised strategy that alleviates the pressure of investment in the platform while providing a tremendous opportunity for the development of the solution. Across both Cloud and Payments, the adjustments to strategy have positioned us for improved results today and moving forward. We remain focused on diligent execution to continue to enhance our trajectory through the remainder of the year.”
Third Quarter 2023 Financial Results
The Company’s condensed consolidated interim financial statements for the three months ended
- Revenue decreased 2% to
$44.4 million compared to$45.3 million for the quarter endedJune 30, 2023 . Revenue decreased 9% to$44.4 million compared to$48.8 million for the quarter endedSeptember 30, 2022 . - Gross profit increased 10% to
$18.3 million compared to$16.7 million for the quarter endedJune 30, 2023 . Gross profit decreased 10% to$18.3 million compared to$20.3 million for the quarter endedSeptember 30, 2022 . - Adjusted EBITDA increased 61% to
$7.0 million compared to$4.4 million for the quarter endedJune 30, 2023 . Adjusted EBITDA decreased 8% to$7.0 million compared to$7.6 million for the quarter endedSeptember 30, 2022 . - Global Cloud Solutions revenue was
$30.7 million compared to$30.2 million for the quarter endedJune 30, 2023 and compared to$36.0 million for the quarter endedSeptember 30, 2022 . - Global Cloud Solutions gross profit as a percentage of revenue was 43% compared to 39% for the quarter ended
June 30, 2023 and compared to 40% for the quarter endedSeptember 30, 2022 . - Global Payment Solutions revenue decreased to
$13.7 million compared to$15.1 million for the quarter endedJune 30, 2023 . Global Payment Solutions revenue increased to$13.7 million compared to$12.8 million for the quarter endedSeptember 30, 2022 . - The Company’s total senior debt to Adjusted EBITDA ratio was 2.62:1.00 at
September 30, 2023 .
Third Quarter 2023 and Recent Operational Highlights
- Announced sale of PayiQ
- Recognized as the 2023 Solution Partner of the Year by
Board International at the Board Americas Partner Summit for its outstanding channel marketing collaboration and introduction of theMicrosoft Dynamics 365 Trial Balance Extractor solution to Board - Announced the appointment of two new directors to the board of directors
- Collaborated with Microsoft to leverage new healthcare data solutions in Microsoft Fabric for Ontario Workers Network, the
Ottawa Hospital , and other hospitals in the network - Ranked #2 on the Dallas Business Journal’s Ninth Annual Middle Market 50 List
- Selected for the Dallas Journal’s Ninth Annual Middle Market 50 List
- Completed the migration of a global manufacturer of diversified products, from Microsoft Dynamics AX to Dynamics 365 Finance &
Supply Chain Management - Awarded the Information Protection and Governance and Service advanced specializations, marking the 15th and 16th Microsoft advanced specializations awarded to the Company
- Announced the launch of MazikCare Care Planner, a new care treatment pathing application designed to streamline patient care coordination and improve communication between healthcare providers and patients
- Collaborated with
Heart-Tech Health to implement MazikCare as an Integrated Care Delivery Tool to prevent women’s heart disease - Announced the successful migration of its patented AgeChecker.Net to PayiQ’s payments processing, a significant milestone in its continued evolution of the PayiQ cloud-enabled payments platform
Conference Call
Company CEO
Toll Free dial-in: 1-877-704-4453
International dial-in: 1-201-389-0920
Webcast Link: Here
Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
A telephonic replay of the conference call will be available after
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13742269
For additional information, please visit the Investor Relations section of Quisitive’s website at: https://quisitive.com/investor-relations/.
The following table summarizes results for the third quarter ended
Three Months Ended | Nine Months Ended | ||||||||||||||
Revenue (Note 14) | $ | 44,371 | $ | 48,814 | $ | 138,004 | $ | 141,361 | |||||||
Cost of Revenue | 26,039 | 28,486 | 84,774 | 83,803 | |||||||||||
Gross Margin | 18,332 | 20,328 | 53,230 | 57,558 | |||||||||||
Operating Expenses | |||||||||||||||
Sales and marketing expense | 3,504 | 3,501 | 10,917 | 10,803 | |||||||||||
General and administrative | 7,822 | 9,217 | 23,941 | 25,916 | |||||||||||
Development | 108 | 111 | 332 | 317 | |||||||||||
Share-based compensation (Note 9) | 548 | 1,334 | 3,209 | 2,575 | |||||||||||
Interest expense (Note 6) | 1,584 | 1,275 | 4,899 | 3,168 | |||||||||||
Amortization (Note 5) | 4,080 | 4,312 | 12,367 | 12,893 | |||||||||||
Earn-out settlement loss | - | 1,406 | - | 1,478 | |||||||||||
Acquisition related compensation | - | 663 | 638 | 2,153 | |||||||||||
Depreciation (Note 4) | 430 | 520 | 1,328 | 1,541 | |||||||||||
Foreign exchange loss (gain) | (165 | ) | (364 | ) | 55 | (255 | ) | ||||||||
Acquisition-related, transaction and other expenses | 1,474 | 164 | 2,896 | 723 | |||||||||||
Other expenses (income) | (7 | ) | (14 | ) | 3 | (14 | ) | ||||||||
Loss Before Income Taxes | (1,046 | ) | (1,797 | ) | (7,355 | ) | (3,740 | ) | |||||||
Income tax expense — current | 1,243 | 1,363 | 3,224 | 3,683 | |||||||||||
Deferred income tax expense (recovery) | (1,010 | ) | (1,019 | ) | (3,294 | ) | (3,252 | ) | |||||||
Net Loss for the Period | $ | (1,279 | ) | $ | (2,141 | ) | $ | (7,285 | ) | $ | (4,171 | ) | |||
About
Quisitive Investor Contact
QUIS@gateway-grp.com
949-574-3860
Chief of Staff
tami.anders@quisitive.com
972.573.0995
Reconciliation of Non-GAAP Financial Measures - Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue
Financial Measures and Adjusted EBITDA
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about the Company and measuring our operational results.
The term "Adjusted EBITDA" refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes), changes in fair value of derivatives, transaction and acquisition-related expenses, US payroll protection plan loan forgiveness, earn-out settlement losses and non-recurring development costs associated with obtaining bank sponsorship and operational certifications required to complete PayiQ. Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.
Management considers these non-operating expenses to be outside the scope of
Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.
Cautionary Note Regarding Forward Looking Information
This news release contains certain “forward‐looking information” and “forward‐looking statements” (collectively, “forward‐ looking statements”) within the meaning of applicable Canadian securities legislation regarding
The risks and uncertainties that may affect forward-looking statements, or the material factors or assumptions used to develop such forward-looking information, are described under the heading "Risks Factors" in the Company's annual information form dated
Neither the
Source:
2023 GlobeNewswire, Inc., source