VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture:VQS), a
global expert providing a cybersecurity protected technology and
service platform for digital evidence capture and content
management, today reported financial results for the three and
nine-month periods ended September 30, 2017. Results are reported
in US dollars and prepared in accordance with International
Financial Reporting Standards (“IFRS”).
“We are pleased to report a third consecutive
profitable quarter along with continued strong growth in top line
revenue,” said Sebastien Paré, President and CEO of VIQ. "Profit
and revenue performance in Q3 are a direct result of our market
diversification; CyberCrypt, the best in class SaaS cybersecurity
for digital evidence and sensitive content; growth from existing
customers in the EMEA, Australia and US; and from some customers
upgrading to the latest platform to take advantage of new products
and services including VIQ’s upcoming aiAssistTM..
“The Company anticipates continued strong growth
through a blend of new and organic growth in recurring revenue for
2017 and beyond as pilots in our pipeline continue to increase
steadily via a growing ecosystem of strategic partners worldwide,”
said Mr. Paré. “Two new breakthrough products are nearing
commercial launch in 2018, paving the way for aiAssistTM demand in
the second part of 2018.
“The positive financial and business results build on the
momentum of the last three quarters and reflect VIQ’s international
footprint and growing market demand for ultra-secure digital
evidenced and next generation analytics,” Mr. Paré said.
VIQ’s adjusted net income (which excludes stock
based compensation) was $77,018 for the three months ended
September 30, 2017 as compared to a loss of $264,712 for the same
period in 2016. For the nine months ended November 30, 2017
adjusted net income was $495,870 compared to a loss of $570,264 for
the same period in 2016, representing a significant shift in growth
trajectory.
Revenue for the quarter was $3.2M compared to
$2.2M in 2016, an increase of 45% and recurring revenue increased
30% over the same period in 2016. Revenue for the nine month period
increased 39% to $9.3M compared to $6.7M in 2016, while recurring
revenue increased 22% which is attributable to the incremental
addition of new SaaS-based customers in 2017.
VIQ CyberCrypt is currently in the midst of
several enterprise level rollouts in the US and internationally,
and in the advanced pilot phases with other cybersecurity focused
customers of similar scale. While some revenue from these projects
was recognized in Q2 and Q3, the majority is now anticipated into
2018 as projects continue to progress into the rollout phase.
Q3 2017
Highlights
- Revenue grew 45% compared to the same period in 2016 with new
diversified wins and a 30% increase in recurring revenue compared
to the same period in 2016.
- VIQ continues to attract highly sensitive and security
conscience customers and partners who have requested non-disclosure
of their Q3 contracts.
- Adjusted net income (which excludes stock based compensation)
of $77,018 as compared to a loss of $264,712 in 2016.
- Announced next growth driver, aiAssistTM, The Artificial
Intelligence Assistant blending VIQ’s existing platform with
artificial intelligence.
- Appointment of Mike Kessell, President of Cleveland Clinic
Canada to the Board of Directors to help accelerate VIQ’s Medical
growth in US and International markets via strategic medical
partners.
- Subsequent to the end of the quarter, announced contract with
the University of Guelph, Ontario Veterinary College for the
Satellite A/V capture, management and analytics solution.
- Concurrent non-brokered and brokered private placement offering
for gross proceeds of $4.9M to scale growth and deliver on next
technology innovations and aiAssistTM was closed in Q4
Additional
Information
The unaudited third quarter 2017 interim
consolidated financial statements and results of operations and
Management’s Discussion and Analysis of Results and Financial
Condition for the three and nine-month period ended September 30,
2017 will be posted on SEDAR’s website at www.sedar.com. The
financial information included in this release is qualified in its
entirety and should be read together with the unaudited third
quarter 2017 interim consolidated financial statements and the
audited consolidated financial statements for the year ended
December 31, 2016, including the notes thereto.
About VIQ
VIQ is the leading technology and service
platform provider for digital evidence capture and content
management. Our secure modular software allows customers to onboard
the VIQ platform at any stage of their organization's digitization,
from the capture of digital content from video and audio devices
through to online collaboration, mobility, data analytics and
integration with sensors, facial recognition, speech recognition
and case management or patient record systems. VIQ's technology
leads the industry in security, meeting the highest international
standards for digital cybersecurity and privacy, including military
and medical regulations.
Our solutions are in use in over 20 countries
with tens of thousands of users in over 200 government and private
agencies including law enforcement, immigration, medical, legal,
insurance, courts, transportation and transcription service
providers. VIQ also provides end to end transcription services to
several large government agencies through our Australia-based
reporting and transcription partners. VIQ operates worldwide with
partners like security integrators, audio-video specialists, and
hardware and data storage suppliers. For more information about VIQ
Solutions, please visit www.viqsolutions.com.
Forward-looking
Statements
Certain statements included in this news release
constitute forward looking statements or forward looking
information under applicable securities legislation. Such forward
looking statements or information are provided for the purpose of
providing information about management's current expectations and
plans relating to the future. Readers are cautioned that reliance
on such information may not be appropriate for other purposes.
Forward looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar words
suggesting future outcomes or statements regarding an outlook.
Forward looking statements or information in this news release
include, but are not limited to, management’s targets for the
Company’s growth in 2017, as well as the size, scope, and timing of
the implementation of projects currently in the pilot phase.
Forward looking statements or information is
based on a number of factors and assumptions which have been used
to develop such statements and information but which may prove to
be incorrect. Although VIQ believes that the expectations reflected
in such forward looking statements or information are reasonable,
undue reliance should not be placed on forward looking statements
because VIQ can give no assurance that such expectations will prove
to be correct. In addition to other factors and assumptions which
may be identified in this news release, assumptions have been made
regarding, among other things, the Company’s recent initiatives,
and that sales and prospects may provide incremental value for
shareholders. Readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which have been used.
Forward looking statements or information are
based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by VIQ
and described in the forward looking statements or information.
These risks and uncertainties may cause actual results to differ
materially from the forward looking statements or information.
Readers are cautioned that the foregoing list is not exhaustive of
all possible risks and uncertainties.
For further information: Peter Kostandenou,
Chief Marketing Officer, VIQ Solutions, (905) 948-8266 ext. 213,
email: peter@viqsolutions.com.
For more information about VIQ, please visit
www.viqsolutions.com.
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this release.
VIQ Solutions (TSXV:VQS)
Historical Stock Chart
From Apr 2024 to May 2024
VIQ Solutions (TSXV:VQS)
Historical Stock Chart
From May 2023 to May 2024