Annualized Software as a Service (SaaS) revenue increases 20% to $ 6.4 million
Business Development Center (BDC) annualized revenue increases 36% to $ 2.4 million
CALGARY, Alberta, August 25, 2021 (GLOBE NEWSWIRE) – Quorum Information Technologies Inc. (Venture TSX: QIS) (Quorum), a leading provider of innovative and robust technology solutions and services to traditional and electric vehicle dealers and to Original Equipment Manufacturers (OEMs) in North America today released their results for the second quarter of 2021.
The second quarter of 2021 saw the highest quarter of SaaS and BDC revenue in Quorum’s history. SaaS and BDC revenues increased by 5% and 9% respectively from the first quarter of 2021. These quarter-over-quarter increases represent annualized increases of 20% and 36% respectively.
Second Quarter Results
- SaaS revenue was $ 6.4 million, an increase of 51% from Q2 2020 and an increase of 5% from Q1 2021.
- BDC’s revenue was $ 2.4 million, a 55% increase from Q2 2020 and a 9% increase from Q1 2021.
- Total revenue was $ 9.1 million, an increase of 53% from the second quarter of 2020 and an increase of 6% from the first quarter of 2021.
- Gross margin was $ 4.0 million, an increase of 64% from the second quarter of 2020 and an increase of 7% from the first quarter of 2021.
- Adjusted EBITDA1 was $ 1.1 million, a 4% increase from the second quarter of 2020.
- The net loss amounted to $ 0.2 million, compared to $ 0.1 million in the second quarter of 2020.
“This has been a very exciting quarter, recording the highest quarter of organic SaaS growth in the company’s history. As a result, we achieved organic SaaS revenue growth of 5% sequentially or 20% annualized. BDC’s growth was also strong in the second quarter of 2021, successfully improving BDC’s gross margins by 30%, ”said Maury Marks, President and CEO. “Additionally, our transformative MyDeal and PowerLane solutions, which enable dealer customers to purchase a vehicle online and have a contactless service experience, are achieving strong market adoption and increasing our ‘wallet share’.
“I especially want to thank our employees and customers who have helped Quorum meet the challenges of COVID-19,” added Marks. “Our people are the driving force behind our strong results and their continuous innovation ensures that Quorum has a product line and service offering prepared for the future of the automotive industry. “
|Three months ended
(in thousands of dollars)
|SaaS revenue2||$6,429||$4 262|
|One-off services and income||258||136|
|Cost of income||5,057||3 493|
|Percentage of gross margin||44||%||41||%|
|Adjusted cash income4||446||645|
Quorum Q2 2021 earnings conference call details and investor presentation
Maury Marks, Chief Executive Officer and Marilyn Bown, Chief Financial Officer, will present the second quarter 2021 annual results during a conference call with simultaneous audio webcast, scheduled to:
The investor presentation of Q2 2021 results, a replay of the conference call and transcripts of the conference call will also be available at www.QuorumInformationSystems.com.
This report contains certain forward-looking information and statements within the meaning of applicable securities laws. All statements in this report, other than statements of historical fact, that deal with events or developments regarding Quorum Information Technologies Inc. (“Quorum” or the “Company”) that Quorum expects to occur are “forward-looking information and statements”. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “in progress”, “may”, “will”, “project”, ” should “,” “,” could “,” expected “,” believe “,” plan “,” intend “,” could “and similar expressions are intended to identify forward-looking information or statements.
In particular, but without limiting the foregoing, this document may contain information and forward-looking statements regarding the following: Quorum’s business plan, including its plans to target a new original equipment manufacturer integration (“OEM”), sales of new dealership roofs and increased partnerships with the automotive group; the timing of completion and cost of OEM integration; estimates of return on assets and adjusted EBITDA1; potential merger and acquisition (“M&A”) opportunities; the timing of adoption of the new accounting standards and the potential impact of the new accounting standards on the Company’s financial statements; the effect of acquisitions on the Company; the effect of the BDC Capital facility; the effect of the COVID-19 pandemic on industry activity and economic activity in North America as a whole; various industry activity forecasts; growth opportunities, including those of the United States; anticipated OEM requirements for integrations and certifications; and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements regarding possible future events, conditions, results of operations or performance. Various assumptions have been used in drawing conclusions or making forecasts and projections contained in forward-looking statements throughout this report. The forward-looking information and statements contained in this report reflect several important factors, expectations and assumptions, including, without limitation: (i) capital expenditures of dealers; (ii) the availability on the market of the current and future roofs of the concessionaires; (iii) the schedules and timing of certain projects and Quorum’s growth strategy; (iv) the future operating and financial results of Quorum; and (v) processing under government regulatory regimes and tax and other laws. The forward-looking information and statements included in this report are not guarantees of future performance and should not be improperly relied upon.
Forward-looking statements are based on current expectations, estimates and projections which involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking information and statements. . These information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements, including, without limitation: (i) the volatility of exchange rates for the Canadian dollar versus the US dollar; (ii) the responsibilities and risks inherent in the software services industry; (iii) competition for, inter alia, capital and qualified personnel; (iv) changes in general economic, market and business conditions in Canada and the United States; and (v) actions of governmental or regulatory authorities, including changes in tax laws or changes in tax laws. Quorum cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this document speak only as of the date of this document, and Quorum assumes no obligation to update or revise them to reflect new events or circumstances, except as applicable laws require it. Any financial outlook or forward-looking financial information contained in this document, as defined by applicable securities legislation, has been approved by management of Quorum. This financial outlook or forward-looking financial information is provided for the purpose of providing information about management’s current expectations and plans for the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
About Quorum Information Technologies Inc.
Quorum is a North American company focused on the development, commercialization, implementation and support of its automotive dealer software and services portfolio, which includes:
- XSellerator, a dealership management system (DMS) that automates, integrates and streamlines key processes between departments in a dealership, with a focus on revenue generation and customer satisfaction.
- DealerMine CRM, a sales and service customer relationship management (CRM) system and a set of business development center services that generate revenue in the critical sales and service departments of a dealership.
- Autovance, a modern retail platform that helps dealers attract more business through digital retail, improve in-store profits and close rates through its desktop tool, and maximize their efficiency and CSI thanks to Autovance’s F&I menu solution.
- Advantage, a complete showroom system for independent dealers and a management system that also includes in-house rental, inventory management and accounting.
Quorum has filed its unaudited condensed consolidated financial statements for the second quarter of 2021 and related notes as at and for the three months ended June 30, 2021, as well as management and related comments and analysis in accordance with NI 51-102. – Continuous information obligations adopted by Canadian securities regulators.
Quorum Information Technologies Inc. is listed on the Toronto Venture Stock Exchange (TSX-V) under the symbol QIS. For more information, visit 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 accepts no responsibility for the adequacy or adequacy of this release. accuracy of this release.
1 Adjusted EBITDA (non-GAAP) – Net earnings (loss) before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, foreign exchange gains and losses, non-recurring expenses related to acquisitions and restructuring.
2 SaaS revenue for the quarter ended June 30, 2020 included $ 1.5 million in customer discounts related to COVID-19.
3 BDC’s revenue for the quarter ended June 30, 2020 included $ 0.3 million in customer discounts related to COVID-19.
4 Adjusted cash income (non-GAAP) – Adjusted EBITDA less capitalized salaries and overheads.
Contact: Maury Marques
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