Sylogist Ltd. (TSX: SYZ) ("Sylogist" or the "Company"), a leading
public sector SaaS company, today announced its Q2 financial
results for the three months ending June 30, 2023.
Q2 2023 Financial
Highlights
- Record revenue of $16.7 million, up
21% Y/Y
- Recurring revenue up 8%; SaaS
revenues up 9% Y/Y
- Gross margin at 61%
- Adjusted EBITDA of $4.3 million or
26% Adjusted EBITDA margin
- Bookings of $6.1 million
- Backlog of $28.9 million
“The strong results we delivered in Q2 are
further evidence of the successful transformation of our business
over the last two years,” commented Bill Wood, CEO of Sylogist.
“For investors, the strategic investments we’ve made and our focus
on customer satisfaction, combined with the execution of our
go-to-market strategy, drove another strong quarter. To that end,
we expect demand for our SylogistMission, SylogistEd and
SylogistGov platforms to continue throughout the second half of the
year.”
Sylogist’s Board of Directors approved a dividend of $0.01 per
share for shareholders of record on August 31 (ex-dividend August
30, 2023) to be paid on September 13, 2023. Such dividend is
treated as an “eligible dividend” under the Income Tax Act
(Canada).
The Company will host a conference call at 10:30 AM Eastern Time
on August 10, 2023. Bill Wood, President and Chief Executive
Officer, and Sujeet Kini, Chief Financial Officer, will present the
Company's financial results, discuss performance as well as outlook
for the remainder of 2023 and beyond. Interested parties are
invited to join the call at 1-800-806-5484 (Canada/USA Toll Free)
or 416-340-2217. The participant passcode is 9270740#. A
question-and-answer session will follow, and a replay will be
archived in the investor section of the Company’s website.
About SylogistSylogist provides
mission-critical SaaS solutions to over 2,000 public sector
customers globally across the government, non-profit, 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
StatementsCertain 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 made, if any,
with respect to Sylogist’s confidence in future quarters or future
fiscal years. 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
quarters ended March 31, 2023, and June 30, 2023, and other
documents available on the Company’s profile at www.sedarplus.ca.
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
This news release makes reference to certain
non-IFRS measures. These measures are not recognized measures under
IFRS, do not have a standardized meaning prescribed by IFRS and
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 IFRS.
Backlog, Bookings, Adjusted EBITDA, Adjusted
EBITDA Margin and Constant Currency revenue growth are non-IFRS
financial measures. Backlog refers to the value of contracted
revenue that is not yet recognized and includes unrecognized
contracted revenues, from SaaS subscription contracts and
maintenance and support contracts as well as project services
revenues that have not been recognized or have not been invoiced to
date but will be in future periods. Bookings are the total value of
customer contracts, entered into during the reporting period, that
are new, committed and incremental to our existing contracts and
are inclusive of new, committed and incremental project services
engagements. 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 acquisitions, income taxes, acquisition-related
costs, change in purchase consideration fair value, and
depreciation and amortization. Adjusted EBITDA Margin refers to
Adjusted EBITDA as a percentage of revenue. Constant Currency
revenue growth is defined as the growth in revenue exclusive of the
impact of foreign exchange rate changes.
Backlog, Bookings, Adjusted EBITDA, Adjusted
EBITDA Margin, and Constant Currency 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.sedarplus.ca.
For further information contact:
Sujeet Kini, Chief Financial Officer
Sylogist Ltd.(403) 266-4808 ir@sylogist.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ba45b092-d839-4639-aa81-65e18006c36b
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