PHOENIX, Ariz.--(BUSINESS WIRE)--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 provides an update on its growth plans, updated outlook for the third quarter of 2021 and financial outlook for the full years 2021 and 2022. Additionally, the Company announces it will host an analyst and investor call today at 11:00 A.M. ET to discuss further details. All dollar amounts are expressed in U.S. dollars unless otherwise stated.
As further detailed below, VIQ has achieved significant corporate milestones this year, putting it in a position to execute its acquisition roll-up strategy. With the completion of The Transcription Agency (“TTA”) acquisition and the acquisition of Auscript Australasia Pty Ltd (“Auscript”), expected to be complete in the fourth quarter 2021, along with organic growth and the expected emergence from COVID-19 lockdowns globally in 2022, the Company is on track to generate at least $50 million in revenue1 with 47%-55% gross margin and 10%-20% adjusted EBITDA margin2 by the end of fiscal 2022.
“With several of our large Legal Court and Law Enforcement clients in Australia operating at 50% of normal capacity due to the prolonged shutdowns, the last three months have been a particularly challenging period from an operations and capital markets perspective. However, we believe we have managed through the pandemic well, fortified our balance sheet, and taken the steps necessary to execute our roll-up strategy and long-term growth plan, despite global M&A delays due to COVID-19 and international travel restrictions. We are in a strong position from a competitive standpoint and are rolling out FirstDraft, powered by AI, which will drive our revenue mix toward a more scalable, higher margin SaaS model,” said Sebastien Par, VIQ's Chief Executive Officer.
The Company’s management and board of directors (the “Board”) collectively represent the single largest shareholder group of VIQ, with over 27% ownership prior to the U.S. only registered direct offering (the “RDO”) completed on September 15 and hold approximately 24% ownership of the issued and outstanding shares of the Company (on a fully diluted basis) after completion of the RDO.
Mr. Par continued, “The Board and management wish to acknowledge they were disappointed by the market’s reaction to both the revised near-term outlook issued on July 30 and the RDO. We believe that raising capital was needed to close on accretive acquisitions and onboard significant new institutional shareholders. At this time in our growth trajectory, we are emerging from the COVID-19 pandemic in a strong position in a global industry digitizing at a fast pace to accommodate the new delivery expectations.”
“On August 12, VIQ’s shares began trading on Nasdaq following, our graduation to the TSX in Canada in January. Just last year, we were considered a venture company, and in 2021, we are listed nationally on big boards both in Canada and the U.S. This year’s equity trading volumes have leapfrogged prior year volumes on the TSXV and OTCQX. Our listings on the Nasdaq and TSX, coupled with strong trading liquidity, are expected to facilitate increased investment by institutional shareholders globally,” stated Alexie Edwards, VIQ's Chief Financial Officer.
Update on Long-term Global Growth Plans
“The senior exchange listings and a strategic capital raise were necessary to enable us to continue executing our accretive roll-up strategy which has accelerated with many new global opportunities. We believe the acquisition of TTA, the leading supplier of secure outsourced transcription services to clients in private and public sectors throughout the United Kingdom, will enable us to expand our presence in the U.K. where we now have post Brexit compliant, jurisdictional access,” said Susan Sumner, VIQ President and Chief Operating Officer.
“Additionally, our planned acquisition of Auscript this quarter enables VIQ to provide exceptional service and enhance the quality of delivery for all Australian clients with an opportunity to leverage our innovative technology offerings while improving our overall margin profile,” added Ms. Sumner.