CALGARY, Alberta, May 11, 2023 (GLOBE NEWSWIRE) -- Sylogist Ltd. (TSX: SYZ) (“Sylogist” or the “Company”), a leading public sector SaaS company, is pleased to announce its unaudited financial results for the three-month period ended on March 31, 2023.
“Momentum is continuing, with our team delivering an exceptionally strong performance again in Q1, posting record quarterly revenue of $15.9M, including 21% organic growth and strong bookings,” commented Bill Wood, CEO. “We closed $7.7 million in bookings this quarter, reflecting accelerating strength in demand for our solutions from new logos and customer cross-sells alike; achieved by our platform vs. products strategy. We are also pleased with the 6% quarter-over-quarter increase in revenue per employee we saw, indicating increased utilization and delivery efficacy amongst our project services team. The traction we have seen over the last 6 months gives us confidence that our profitable growth playbook is working and that we are executing as planned.”
As announced previously, Sylogist will host a conference call at 9:00 AM Eastern Time (today, May 11) to discuss the Company’s financial results. Interested parties are invited to join the call at 800.319.4610 (Canada/USA Toll Free) or 416.915.3239. A recording of the conference call will be available on the Company’s website afterwards.
Sylogist’s Board of Directors has also declared a dividend of $0.01 per share on Sylogist's common shares to shareholders of record on May 31 (ex-dividend May 30, 2023) payable on June 14, 2023.
All dividends paid by Sylogist to holders of common shares in the capital of the Company will be treated as eligible dividends pursuant to the Income Tax Act (Canada).
Financial Highlights for the Quarter Ended March 31, 2023
| IFRS Measures |
|
|
|
|
Three Months
Ended
March 31,
2023 |
Three Months
Ended
March 31,
2022 |
% YoY
Change |
| Revenue ($M) |
$15.9 |
$13.1 |
21% |
| Cloud Subscriptions ($M) |
$6.2 |
$5.4 |
14% |
| Maintenance & Support ($M) |
$3.6 |
$3.2 |
10% |
| Gross Profit ($M) |
$9.5 |
$8.4 |
13% |
| Gross Profit Margin |
60% |
64% |
|
| Profit Before Income Tax ($M) |
$0.3 |
$1.0 |
|
| Non-IFRS Measures1 |
|
|
|
|
Three Months
Ended
March 31,
2023 |
Three Months
Ended
March 31,
2022 |
% YoY
Change |
| Backlog ($M) |
$28.1 |
$24.0 |
17% |
| Adjusted EBITDA ($M) |
$3.8 |
$3.9 |
-2 |
| Adjusted EBITDA Margin |
24% |
30% |
|
| Adjusted EBITDA per Share |
$0.16 |
$0.16 |
|
(1) See Management Discussion and Analysis for definition and adjustments applied to Adjusted EBITDA, and the definition of Backlog
| Other Financial Highlights |
- 17% constant currency organic revenue growth
- $7.7 million in new bookings
- Negative impact to Q1 Adjusted EBITDA per Share due to specific non-recurring expenses was $0.02
|
| Revenue Analysis |
|
|
|
|
|
|
Three Months
Ended
March 31,
2023 |
Three Months
Ended
Dec 31,
2022 |
% QoQ
Change |
Three Months
Ended
March 31,
2022 |
% YoY
Change |
| Cloud Subscriptions ($M) |
$6.2 |
$6.0 |
3% |
$5.4 |
14% |
| Maintenance & Support ($M) |
$3.6 |
$3.7 |
-3% |
$3.2 |
10% |
| Project Services Revenue ($M) |
$5.9 |
$4.9 |
20% |
$3.9 |
53% |
| Other Revenue ($M) |
$0.2 |
$0.7 |
-71% |
$0.6 |
-80% |
| Total Revenue ($M) |
$15.9 |
$15.3 |
4% |
$13.1 |
21% |
About Sylogist
Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers globally across the government, nonprofit, and education verticals. The Company's stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, inclusive of full financial statements together with Management’s Discussion and Analysis, can be found at www.sylogist.com.
Forward-looking Statements
Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. Forward-looking information in this news release includes statements with respect to Sylogist seeing accelerating strength in demand for its solutions, its playbook working, and execution taking place as planned. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including its inability to attract key employees or enlist customer support, its inability to develop innovative technology, its inability to find opportunities to deploy free cash flow, impacts of public health crises (including the COVID-19 pandemic), and economic turmoil. Additional information regarding some of these risks, uncertainties and other factors may be found in the Company’s Annual Information Form for the fiscal period ended December 31, 2022 and in the management’s discussion and analysis for the fiscal period ended March 31, 2023, and other documents available on the Company’s profile at www.sedar.com. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist’s ability to attract and retain employees and customers and to realize on its investments, the ability to expand technology partner and customer relationships and the acceleration of organic and inorganic growth. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Non-IFRS Financial Measures
Backlog,Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA per share, revenue per employee, and constant currency organic revenue growth are non-IFRS financial measures. Backlog is defined as total revenue contracted but not yet recognized. Adjusted EBITDA is defined as: profit for the period before stock-based compensation expense, share-based payments, foreign exchange gains or losses, interest expense, bargain purchase price on acquisition, income taxes, acquisition-related costs, change in purchase consideration fair value, depreciation and amortization. Adjusted EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA per share refers to Adjusted EBITDA per basic weighted average number of shares outstanding. Revenue per employee refers to total revenue over an applicable reference period, divided by the number of full-time employees over that period. Constant currency organic revenue growth is defined as the growth in revenue exclusive of the impact of foreign exchange rate changes, acquisitions, divestitures, transfers between business units, and investment income.
This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under Canadian IFRS, do not have a standardized meaning prescribed by Canadian IFRS and are therefore may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement measures under IFRS by providing further understanding of the Company’s expected results of operations from management’s perspective. Accordingly, such measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under Canadian IFRS.
Backlog, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA per share, revenue per employee, and constant currency organic revenue growth are provided to investors as alternative methods for assessing the Company’s operating results in a manner that is focused on the Company’s ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be construed as alternatives to profit or cash flow from operating activities determined in accordance with IFRS as an indicator of the Company’s performance.For further information regarding non-IFRS measures used by the Company, please refer to the management’s discussion and analysis of the Company, copies of which are available on Sylogist's SEDAR profile at www.sedar.com.
For further information contact:
Sujeet Kini, Chief Financial Officer
or
Rudy Shirra, Director of Business Development and Operations Strategy
Sylogist Ltd.
(403) 266-4808
ir@sylogist.com
