VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX and Nasdaq:
VQS), a global provider of secure, AI-driven, digital voice and
video capture technology and transcription services, today reported
its unaudited financial results for the first quarter ending March
31, 2023. Results are reported in US dollars and prepared in
accordance with International Financial Reporting Standards
("IFRS").
“The increasing demand for digital content by global
organizations necessitates the implementation of innovative,
specialized technology to process data more swiftly and in a secure
and precise manner. Transcribers play a critical role in leveraging
Artificial Intelligence (AI) to achieve greater productivity and
accuracy rates to meet evidentiary standards. We are encouraged by
our strong Q1 bookings that represent an increase of 69% from the
same period in 2022,” said Sebastien Paré, VIQ’s Chief Executive
Officer.
“We are pleased to have completed the migration to the
Queensland contract. Despite short-term revenue impacts, it is a
crucial step to provide us with revenue predictability as we
continue to scale. We believe this contract, combined with the
effects of foreign currency exchange, would have normalized
quarter-over-quarter revenue showing growth in Australian revenue.”
said Sebastien Paré.
First Quarter 2023 Operational Highlights
- $2.8M1 of net new bookings sold for the quarter, representing
69% increase from Q1 2022.
- First active installations of NetScribe sold in India for an
International Transcription Company.
- First quarter in full implementation of Queensland contract in
Australia.
- Initial sales closed in the ORdigiNAL agreement.
- Launched CapturePro Mobile
“As we pivot to meet market demand for SaaS solutions, there
will be a positive impact to the revenue mix for organic and run
rate revenue. This change is expected to protect long-term revenue
and ultimately lead to significant margin improvement but will
impact our top line revenue in the short term. Q1 had a slight
decline in our U.S. revenue due to the acceleration of SaaS sales
in Insurance and Law Enforcement,” said Susan Sumner, VIQ’s
President and Chief Operating Officer.
First Quarter 2023 Financial Highlights
- Revenue of $10.1 million, a decrease of $1.5 million, or 13%,
in the same period of the prior year, was primarily due to the
expected change in the Queensland contract.
- Gross profit was $4.4 million, or 44.0% of revenue, compared to
$5.5 million, or 47.6% of revenue in the same period of the prior
year. The decrease in the gross margin was primarily due to the
expected change in the Queensland contract.
- Net loss of $3.5 million, or $0.10 per diluted share, versus
net loss of $2.0 million, or $0.07 per diluted share in the same
period of the prior year.
- Adjusted EBITDA1 deficit of $1.1 million, versus Adjusted
EBITDA deficit of $0.9 million in the same period in the prior
year. The increase in Adjusted EBITDA deficit was primarily due to
decreased gross profit, partially offset by decreased selling and
administrative expenses primarily due to lower insurance premiums,
reduction in IT related costs due to system integrations and lower
headcount related costs due to organizational restructuring.
1 Represents a non-IFRS measure. Please refer to the "Non-IFRS
Measures" section below and the reconciliation tables at the end of
this press release.
“With a focus on cost-containment and the refinancing in
January, we were able to shore up our balance sheet. The new senior
debt facility with Beedie Investments Ltd. extends the terms of our
lending and will provide additional capacity to fuel our future
growth while allowing the Company to execute on our operational
plans to drive margin improvement. ” said Alexie Edwards, VIQ’s
Chief Financial Officer.
As of March 31, 2023, the Company held a total of $2.5 million
in cash. On January 13, 2023, the Company entered a senior debt
facility with Beedie Investments Ltd, with maximum available funds
of $15 million. Twelve ($12) million of the Loan was provided to
the Company as an initial advance with an additional $3 million
available to the Company to be drawn in subsequent advances in a
minimum of $1 million tranches subject to the Company satisfying
certain conditions.
Conference Call Details
VIQ will host a conference call and webcast to discuss its first
quarter 2023 financial results on Thursday, May 11, 2023 at 11:00
AM Eastern Time. The call will consist of updates by Sebastien
Paré, VIQ’s CEO, Alexie Edwards, VIQ’s CFO, and Susan Sumner, VIQ’s
President and COO, followed by a question-and-answer period.
Investors may access a live webcast of the call on the Company’s
website at www.viqsolutions.com/investors or by dialing
1-888-440-4052 (North America toll-free) or +1-646-960-0827
(international) to be connected to the call by an operator using
conference ID number 4983233. Participants should dial in at least
10 minutes prior to the start of the call.
A replay of the webcast will be available on the Company’s
website through the same link approximately one hour after the
conference call concludes.
For more information about VIQ, please visit
viqsolutions.com.
About VIQ Solutions
VIQ Solutions is a global provider of secure, AI-driven, digital
voice and video capture technology and transcription services. VIQ
offers a seamless, comprehensive solution suite that delivers
intelligent automation, enhanced with human review, to drive
transformation in the way content is captured, secured, and
repurposed into actionable information. The cyber-secure, AI
technology and services platform are implemented in the most rigid
security environments including criminal justice, legal, insurance,
government, corporate finance, media, and transcription service
provider markets, enabling them to improve the quality and
accessibility of evidence, to easily identify predictive insights
and to achieve digital transformation faster and at a lower
cost.
Forward-looking Statements
Certain statements included in this press release constitute
forward-looking statements or forward-looking information
(collectively, “forward-looking statements”) 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 (typically contain statements with
words such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", "project" or similar words, including
negatives thereof, suggesting future outcomes or that certain
events or conditions “may” or “will” occur). These statements are
only predictions. Forward-looking statements in this press release
include but are not limited to statements with respect to the
Company’s strategy, improvements to margins, and the conference
call to discuss the Company’s first quarter 2023 results.
Forward-looking statements are based on several factors and
assumptions which have been used to develop such statements, but
which may prove to be incorrect. Although VIQ believes that the
expectations reflected in such forward-looking statements 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 press release,
assumptions have been made regarding, among other things, recent
initiatives and that sales and prospects may increase revenue.
Readers are cautioned that the foregoing list is not exhaustive of
all factors and assumptions that have been used.
Forward-looking statements are necessarily based on a number of
opinions, assumptions and estimates that while considered
reasonable by the Company as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to the factors described in greater detail in the
“Risk Factors” section of the Company’s annual report form on SEC
Form 20-F form dated April 3, 2023, and form on SEC Form 20-F/A on
April 13, 2023 and in the Company’s other materials filed with the
Canadian securities regulatory authorities and the U.S. Securities
and Exchange Commission from time to time, available at
www.sedar.com and www.sec.gov, respectively.
These factors are not intended to represent a complete list of
the factors that could affect the Company; however, these factors
should be considered carefully. Such estimates and assumptions may
prove to be incorrect or overstated. The forward-looking statements
contained in this press release are made as of the date of this
press release and the Company expressly disclaims any obligations
to update or alter such statements or the factors or assumptions
underlying them, whether as a result of new information, future
events or otherwise, except as required by law.
VIQ Solutions Inc. Consolidated Statements
of Financial Position (Expressed in United States dollars,
Unaudited)
March 31, 2023
December 31, 2022
Assets
Current assets
Cash
$
2,513,529
$
1,657,571
Trade and other receivables, net of
allowance for doubtful accounts
5,992,968
5,305,728
Income tax recoverable
102,978
104,670
Inventories
38,649
37,807
Prepaid expenses and deposits
1,638,044
2,050,661
Non-current assets
10,286,168
9,156,437
Restricted cash
255,397
463,743
Property and equipment
1,312,485
1,432,133
Right-of-use assets, net
920,751
1,058,600
Intangible assets, net
9,933,942
10,731,917
Goodwill
11,981,099
12,047,048
Deferred tax assets
704,469
655,004
Total assets
$
35,394,311
$
35,544,882
Liabilities
Current liabilities
Trade and other payables and accrued
liabilities
$
6,170,348
$
5,937,880
Income tax payable
37,532
45,212
Share-based payment liability
45,893
31,487
Derivative warrant liability
444,175
290,712
Current portion of long-term debt
509,425
8,634,258
Current portion of lease obligations
478,582
487,673
Contract liabilities
1,810,039
1,745,415
Non-current liabilities
9,495,994
17,172,637
Deferred tax liability
607,109
868,643
Long-term debt
9,168,792
19,812
Long-term lease obligations
634,491
718,575
Other long-term liabilities
1,019,491
1,121,805
Total liabilities
20,925,877
19,901,472
Shareholders' Equity
Capital stock
74,690,527
74,690,527
Contributed surplus
8,164,549
5,892,192
Accumulated other comprehensive income
(loss)
(1,202,006
)
(1,214,354
)
Deficit
(67,184,636
)
(63,724,955
)
Total shareholders’ equity
14,468,434
15,643,410
Total liabilities and shareholders'
equity
$
35,394,311
$
35,544,882
VIQ Solutions Inc. Consolidated Statements
of Loss and Comprehensive Loss (Expressed in United States dollars,
Unaudited)
Three months ended March
31
2023
2022
Revenue
$
10,052,571
$
11,524,981
Cost of Sales
5,624,614
6,035,932
Gross Profit
4,427,957
5,489,049
Expenses
Selling and administrative expenses
5,361,301
6,136,309
Research and development expenses
144,809
199,085
Stock based compensation
333,292
952,196
Gain on revaluation of options
–
(708,447
)
Gain on revaluation of RSUs
(56,946
)
(174,253
)
(Gain) loss on revaluation of the
derivative warrant liability
158,752
(886,816
)
Foreign exchange loss
237,018
258,760
Depreciation
226,159
135,714
Amortization
1,130,303
1,023,630
Interest expense
333,836
339,713
Accretion and other financing costs
163,716
132,973
(Gain) loss on contingent
consideration
(10,389
)
103,561
Impairment of goodwill and intangibles
157,464
–
Restructuring costs
27,412
14,381
Business acquisition costs
–
21,464
Other income
(5,094
)
(609
)
Total expenses
8,201,633
7,547,661
Current income tax expense
7,362
62,507
Deferred income tax recovery
(321,357
)
(111,203
)
Income tax recovery
(313,995
)
(48,696
)
Net loss for the period
$
(3,459,681
)
$
(2,009,916
)
Exchange gain on translating foreign
operations
12,348
412,798
Comprehensive loss for the
period
$
(3,447,333
)
$
(1,597,118
)
Net loss per share
Basic
(0.10
)
(0.07
)
Diluted
(0.10
)
(0.07
)
Weighted average number of common shares
outstanding – basic
34,649,697
29,881,717
Weighted average number of common shares
outstanding – diluted
34,649,697
29,881,717
VIQ Solutions Inc. Reconciliation of Non-IFRS Measures
(Expressed in United States dollars) (Unaudited)
The following is a reconciliation of Net Loss to Adjusted
EBITDA, the most directly comparable IFRS measure for the periods
ended March 31, 2023, and 2022:
Three months ended March
31
(Unaudited)
2023
2022
Net Loss
(3,459,681)
(2,009,916)
Add:
Depreciation
226,159
135,714
Amortization
1,130,303
1,023,630
Interest expense
333,836
339,713
Current income tax expense
7,362
62,507
Deferred income tax recovery
(321,357)
(111,203)
EBITDA
(2,083,378)
(559,555)
Accretion and other financing costs
163,716
132,973
Gain on revaluation of options
-
(708,447)
Gain on revaluation of RSUs
(56,946)
(174,253)
(Gain) loss on revaluation of the
derivative warrant liability
158,752
(886,816)
Impairment of Intangible assets
157,464
-
Restructuring costs
27,412
14,381
Business acquisition costs
-
21,464
Other income
(5,094)
(609)
Stock-based compensation
333,292
952,196
Foreign exchange loss
237,018
258,760
Adjusted EBITDA
(1,067,764)
(949,906)
Non-IFRS Measures
The Company prepares its financial statements in accordance with
IFRS. Non-IFRS measures are used by management to provide
additional insight into our performance and financial condition. We
believe non-IFRS measures are an important part of the financial
reporting process and are useful in communicating information that
complements and supplements the consolidated financial statements.
Adjusted EBITDA and bookings are not measures recognized by IFRS
and do not have standardized meanings prescribed by IFRS.
Therefore, Adjusted EBITDA and bookings may not be comparable to
similar measures presented by other issuers. Investors are
cautioned that Adjusted EBITDA should not be construed as an
alternative to net income (loss) as determined in accordance with
IFRS.
To evaluate the Company’s operating performance as a complement
to results provided in accordance with IFRS, the term “Adjusted
EBITDA” refers to net income (loss) before adjusting earnings for
stock-based compensation, depreciation, amortization, interest
expense, accretion and other financing expense, (gain) loss on
revaluation of options, (gain) loss on revaluation of restricted
share units, gain (loss) on revaluation of derivative warrant
liability, restructuring costs, (gain) loss on revaluation of
conversion feature liability, loss on repayment of long-term debt,
business acquisition costs, impairment of goodwill and intangibles,
other expense (income), foreign exchange (gain) loss, current and
deferred income tax expense. We believe that the items excluded
from Adjusted EBITDA are not connected to and do not represent the
operating performance of the Company.
We believe that Adjusted EBITDA is useful supplemental
information as it provides an indication of the results generated
by the Company’s main business activities prior to taking into
consideration how those activities are financed and taxed as well
as expenses related to stock-based compensation, depreciation,
amortization, impairment of goodwill and intangibles, other expense
(income), and foreign exchange (gain) loss. Accordingly, we believe
that this measure may also be useful to investors in enhancing
their understanding of the Company’s operating performance.
We calculate “Bookings” for a given period as the estimated
contract value (for services tied to volume) of our recurring
client contracts entered into during the period from (i) new
clients and (ii) net upgrades by existing clients within the same
workload, plus the actual (not annualized) estimated value of
professional services consulting, advisory or project-based orders
received, software licenses, subscriptions, SaaS, and hardware
during the period.
Recurring client contracts are any contracts entered into on a
multi-year or month-to-month basis, but excluding any professional
services contracts for consulting, advisory or project-based work,
software license and hardware.
We use Bookings to measure the amount of new business generated
in a period, which we believe is an important indicator of new
client acquisition and our ability to cross-sell new services to
existing clients. Bookings are also used by management as a factor
in determining performance-based compensation for our sales force.
While we believe Bookings, in combination with other metrics, are
an indicator of our near-term future revenue opportunity, it is not
intended to be used as a projection of future revenue. Booking
information is a non-IFRS measure, which involves judgments,
estimates and assumptions, which does not have a standard industry
definition. Our calculation of Bookings may differ from similarly
titled metrics presented by other companies.
Trademarks
This press release includes trademarks, such as “aiAssist”,
“NetScribe” and “FirstDraft”, which are protected under applicable
intellectual property laws and are the property of VIQ. Solely for
convenience, our trademarks referred to in this news release may
appear without the ® or TM symbol, but such references are not
intended to indicate, in any way, that we will not assert our
rights to these trademarks, trade names and services marks to the
fullest extent under applicable law. Trademarks which may be used
in this press release, other than those that belong to VIQ, are the
property of their respective owners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510006085/en/
Media Contact: Laura Haggard Chief Marketing Officer VIQ
Solutions Phone: (800) 263-9947 Email:
marketing@viqsolutions.com
Investor Relations Contact: Laura Kiernan High Touch
Investor Relations Phone: 1-914-598-7733 Email: viq@htir.net
VIQ Solutions (NASDAQ:VQS)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
VIQ Solutions (NASDAQ:VQS)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025