News
SYLOGIST reports results for the first quarter of 2024
Silogista Ltda.
Accelerating partner strategy drives record bookings
First Quarter 2024 Financial Highlights
First Quarter 2024 Financial Highlights
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Q1 SaaS outbound ARR increased 12% YoY to $28.5M;
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Total ARR increased 7% YoY to $42.5 million;
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SaaS NRR of 106%;
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Bookings increased 18% year-over-year to $9.1 million, 34% of which were tied to partners;
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Adjusted EBITDA margin of 25.9% or US$4.2 million;
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Gross profit margin of 57%;
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RPO of US$26.8 million;
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Repurchased 51,800 shares at a total cost of $0.5 million, with an average price of $8.76 per share.
CALGARY, Alberta, May 9, 2024 (GLOBE NEWSWIRE) — Sylogist Ltd. (TSX: SYZ) (“Sylogist” or the “Company”), a leading public sector SaaS company, today announced its results for the first fiscal quarter 2024, ending March 31, 2024. All amounts are in Canadian dollars unless otherwise noted.
“I am very pleased with our overall first quarter performance and continued strong execution that was in line with our 2024 plan,” said Bill Wood, CEO of Sylogist. “In particular, our record reserves; and, even more so, that partners were involved in more than a third of these victories, which supports that our channel strategy is being consolidated. 2024 will be the year that Sylogist solidifies its position as a leading SaaS provider in its target markets and as a company that puts customers at the forefront of everything we do.”
Sylogist’s Board of Directors has approved a dividend of $0.01 per share to shareholders of record as of May 31, 2024 (ex-May 30, 2024 dividend) to be paid on June 12, 2024. This dividend is treated as an “eligible dividend” under the Income Tax Act (Canada).
Conference call details
The company will host a conference call at 9:00 a.m. ET on May 9, 2024. 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 prospects for 2024 and beyond. Questions and answers will follow, as time permits, and a replay of the conference call will be archived in the investors section of the Company’s website. website.
1 Final twelve months ending March 31, 2024.
Date: Thursday, May 9, 2024
Time: 9am EDT
Participant Toll-Free Number: +1-877-550-2105
Stream link: https://app.webinar.net/WD8E7Rn7kmG
Please call before the conference begins to secure a line and avoid delays.
About Sylogist
Sylogist provides mission-critical SaaS solutions to more than 2,000 public sector customers worldwide in the government, non-profit and education market segments. The Company’s shares trade on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, including complete financial statements together with Management’s Discussion and Analysis, can be found at www.sedarplus.ca or in www.sylogist.com.
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Forward-looking statements
This press release contains “forward-looking information” within the meaning of applicable securities legislation. Although forward-looking information is based on what the Company believes to be reasonable assumptions, expectations and current estimates, investors are cautioned not to place undue reliance on such information as actual results may differ from the forward-looking information. Forward-looking information can be identified by the use of forward-looking terminology such as “believe”, “assume”, “intend”, “may”, “will”, “expect”, “estimate”, “anticipate”, “continue”, “ could”, “might”, “perspective” or similar terms, variations of these terms or the negative of these terms, and the use of the conditional tense, as well as similar expressions.
Such forward-looking information that is not historical fact, including statements based on management’s beliefs and assumptions, cannot be relied upon as guarantees of future performance. They are subject to a number of risks and uncertainties, including, but not limited to, future economic conditions, the markets the Company serves, the actions of competitors, major new technological trends and other factors, many of which are beyond the Company’s control. Company, which could cause actual results to differ materially from those disclosed or implied by such forward-looking information. The Company undertakes no obligation to publicly update any forward-looking information, whether as a result of new information, future events or otherwise other than as required by applicable law. Important risk factors that could affect these expectations include, but are not limited to, the factors described in the “Risks and Uncertainties” section found in the Company’s Annual Information Form for the fiscal period ended December 31, 2023, and in the Discussion of Administration and Analysis for the quarters ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023 and other documents available on the Company’s profile at www.sedarplus.ca.
Actual results and developments are likely to be different, and may differ materially, from those expressed or implied by the forward-looking statements contained in this management’s discussion and analysis. Such statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions about: (i) the competitive environment; (ii) operational risks; (iii) Company administrators and employees; (iv) capital investment by the Company’s customers; (v) implementations of client projects; (vi) liquidity; (vii) current global financial and geopolitical conditions; (viii) implementation of the Company’s commercial strategic plan; (ix) credit; (x) potential product liabilities and other legal actions to which the Company may be subject; (xi) additional financing and dilution; (xii) market liquidity of the Company’s common shares; (xiii) development of new products; (xiv) intellectual property and other proprietary rights; (xv) acquisition and expansion; (xvi) foreign currency; (xvii) interest rates; (xviii) technological and regulatory changes; (xix) internal information technology infrastructure and applications and (xx) cybersecurity. Certain information set forth herein may be considered “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure of Sylogist’s reasonable expectations regarding the anticipated results of 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 press release refers to certain non-IFRS measures. These non-IFRS measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures reported by other companies. These measures are provided as additional information to complement the measures under IFRS, providing greater understanding of the Company’s expected operating results from management’s perspective. Therefore, such measures should not be considered in isolation nor as a substitute for the analysis of the Company’s financial information reported in IFRS. Remaining Performance Obligation (“RPO”), Reserves, Adjusted EBITDA, Adjusted EBITDA Margin, Annualized Recurring Revenue (“ARR”), Software as a Service (“SaaS”) ARR, and Net Revenue Retention ARR (“NRR”) are non-IFRS financial measures.
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RPO generally refers to the amount of contracted revenue that has not yet been recognized in revenue. The Company defines RPO as the sum of its deferred revenue plus the total value of unbilled SaaS and project services bookings. Unlike ARR, which has a one-year time horizon, RPO can include several years of contracted SaaS subscriptions.
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Reserves refer to the total value of contracts accepted by the customer during the reporting period. This includes SaaS bookings (the value of SaaS contracts for the entire contracted period) and project services bookings (the total value of contracted project services).
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Adjusted EBITDA is calculated as earnings before interest expense, interest income, income tax, depreciation and amortization, share-based compensation, foreign exchange gains/losses and the impact of acquisition and restructuring.
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Adjusted EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue.
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ARR is defined as the annualized value of contractually committed SaaS and maintenance and support services. This quantification assumes that customers will renew the contractual commitment periodically as they approach renewal, unless the customer has notified the Company of their intention to cancel. This portion of the Company’s revenue is predictable and stable.
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SaaS ARR refers to the ARR attributable to SaaS customer contracts.
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SaaS NRR refers to the percentage of beginning of period ARR retained over a given 12-month period, including the impact of contractions, losses, and the impact of any additional expansion revenues from customer upgrades within the existing customer base. The Company’s SaaS NRR calculation includes the impact of customers converting from its maintenance and support offerings to its SaaS offerings
RPO, Reserves, Adjusted EBITDA, Adjusted EBITDA Margin, ARR, SaaS ARR and SaaS NRR are provided to investors as alternative methods to evaluate the Company’s operating results in a manner focused on the Company’s ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be interpreted as alternatives to profit or cash flow from operating activities determined in accordance with IFRS as an indicator of the Company’s performance.
For more information about non-IFRS measures used by the Company, see the Company’s Management’s Discussion and Analysis, copies of which are available on Sylogist’s SEDAR profile at www.sedarplus.ca.
For more information contact:
Sujeet Kini, Chief Financial Officer
Silogista Ltda.
Jennifer Smith, Investor Relations
LodeRock Consultants
(416) 491-8004
ir@sylogist.com
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