VIQ Announces Profitable Third Quarter Results
OREANDA-NEWS. 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 Par?, 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. Par?. “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. Par? 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
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.
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.