Strong client response drives 11% year over year growth, a gross margin of 50%, with $725K USD in recurring revenue from acquired client base including 7 of top 10 US Fortune 500 insurance companies in the United States
VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture Exchange: VQS and OTC Markets: VQSLF), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, today announced significant growth in Insurance directly attributable to recent acquisitions and its modernized solution portfolio, powered by Artificial Intelligence. All figures are in USD.
Acquisition growth was augmented by new organic revenue from clients acquired during the COVID-19 pandemic in four key markets including 43 in Law Enforcement.
VIQ’s Insurance portfolio represented 25% of total revenue at the end of Q1, and is forecasted to generate approximately 50% gross margin, $8.8 - $9.0 million revenue in 2020.
To meet increased market demand, VIQ is pleased to announce the appointment of Joel Turry as VP Insurance Sales. Mr. Turry is responsible for increasing transcription service revenue in the insurance vertical and for expanding the market of VIQ’s sophisticated solutions to new and existing clients.
Mr. Turry joined VIQ Solutions in February through the acquisition of WordZ. He brings 28 years of extensive background in transcription services and workflow transformation. During his time at WordZ, Mr. Turry served as president and, with focused execution, created a world-class service organization. In his new role, he is focused on enabling client digital transformation faster and at lower cost.
VIQ Solutions, augmented by recent acquisitions, boasts an impressive client portfolio that includes 7 of the top 10 insurance agencies and 11% growth in wallet share within the acquisition client base. In 2018 billed revenue for VIQ Solutions insurance portfolio was $6.4 million, and in 2019 billed revenue was $7.1 million.
VIQ Solutions leads the digital transformation with cutting edge technologies, NetScribe™, powered by aiAssist™ and MobileMic Pro™, that deliver faster and more accurate transcripts while securely protecting confidential information. VIQ services reduce costs, decreased turnaround times, and increase transcript accuracy improving claim efficiency and providing much needed digitized innovation to the industry.
“VIQ Solutions offers the insurance industry a unique combination of powerful technology and services expertise to the insurance industry to support the creation of evidence, resulting in improved customer experience,” said Joel Turry, Vice President, Sales, Insurance Vertical, VIQ Solutions. “I intend to apply my deep industry knowledge to foster new relationships, drive digital transformation, and provide efficient, secure, and reliable solutions and services to top-tier insurance companies around the nation.”
“VIQ set out to acquire companies in 2018 that aligned with our technology and segmentation strategy so we could influence client improvement and create scale for our acquired companies,” said Susan Sumner, COO, VIQ Solutions. “The results clearly prove that the market sees the value of our combined organization, not only within the Insurance industry but also in the Law Enforcement communities we serve. During the COVID-19 pandemic we have added 43 new Law Enforcement agencies further validating the value in our enhanced portfolio and stringent security protocols.”
For more information about VIQ, please visit viqsolutions.comor call 800-263-9947.
About VIQ Solutions Inc.
VIQ Solutions is a global expert in video capture software and audio recording with voice-to-text capabilities. VIQ provides a cyber-secure AI technology and service platform to law enforcement, immigration, medical, legal, insurance, courts, and transcription service providers, enabling them to unlock the value of their enterprise digital media and streamline their document-creation workflow, using artificial intelligence tools for measurable business gains.
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 2020, 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 several 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 that have been used.
Forward-looking statements or information is based on current expectations, estimates and projections that involve several 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.
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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