VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

August 24, 2017 08:30 ET

VIQ Announces Profitable Second Quarter Results, Driven by 37% YOY Revenue Growth

TORONTO, ONTARIO--(Marketwired - Aug. 24, 2017) - VIQ Solutions Inc. ("VIQ" or the "Company") (TSX VENTURE:VQS), a global expert in secure digital media technology and services, today reported financial results for the three and six month periods ended June 30, 2017. Results are reported in US dollars and prepared in accordance with International Financial Reporting Standards ("IFRS").

"We are pleased to report a profitable quarter along with strong growth in top line revenue," said Sebastien Paré, President and CEO of VIQ. "Profit and revenue performance are a direct result of our market diversification strategy, advanced technology roll out and the execution of our platform roadmap."

"The company anticipates continued strong growth in recurring revenue for 2017 and beyond," said Mr. Paré.

Continued market diversification, SaaS transformation, advanced cybersecurity, digital workflow and Artificial Intelligence (AI) will further drive revenue growth for the rest of 2017 and into next year.

Additional product innovations are scheduled for release beginning this year with a focus on providing clients with efficient management of the extensive digital content they secure, capture and store on the VIQ SaaS platform.

"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 evidence capture and next generation analytics," Mr. Paré said.

"We continue to strategically expand our sales and delivery partner program globally as an increased number of large scale cybersecurity focused projects which commenced in 2016, are now in various stages of deployment."

VIQ's adjusted net income (which excludes stock based compensation) was $0.16M for the three months ended June 30, 2017 as compared to a loss of $0.11M for the same period in 2016. For the six months ended June 30, 2017 adjusted net income was $0.42M compared to a loss of $0.3M for the same period in 2016, representing a significant shift in growth trajectory.

Growth was driven by new technology innovations, customer base diversification and new wins in the public safety, intelligence, courts and medical markets. Revenue for the quarter was $3.2M compared to $2.5M in 2016, an increase of 29%. Revenue for the six month period was $6.1M compared to $4.5M in 2016, an increase of 37%. Recurring revenue increased 13% over the same period in 2016. For the six month period recurring revenue has increased 18% which is a direct result of the incremental onboarding of new SaaS-based customers.

VIQ CyberCrypt, the company's recently released best in class SaaS cybersecurity platform for high value digital evidence and sensitive content, is anticipated to continue adding significant recurring revenue throughout 2017, together with new mobility and collaboration services.

VIQ CyberCrypt is currently in the midst of a number of 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, the majority is anticipated later in 2017 and into 2018 as projects continue to progress into the rollout phase.

Q2 2017 Highlights

  • Revenue grew 29% compared to the same period in 2016 with new diversified wins and an 18% increase in recurring revenue compared to the same period in 2016.
  • Adjusted net income (which excludes stock based compensation) of $0.16M as compared to a loss of $0.11M in 2016.
  • Expanded Tier 1 Partner Program through a strategic partnership with Pivot Technologies (TSX:PTG).
  • VIQ Annual General Meeting was held with a record attendance.
  • Launched CyberCrypt Services which provide the industry gold standard of security, authentication and authorization while simultaneously addressing the need to have low priority content securely stored on public cloud infrastructure for accessibility.

Additional Information

The unaudited second 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 six month period ended June 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 second 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 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.

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