TORONTO, May 25, 2022 (GLOBE NEWSWIRE) -- Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS, OTCQX: QUISF), a premier Microsoft solutions and payment solutions provider, today reported financial results for the first quarter ended March 31, 2022.
Management Commentary
"Quisitive once again recorded significant progress across the two segments of our business, highlighted by a 256% increase in revenues; providing a strong start to fiscal year 2022," said Quisitive CEO Mike Reinhart. "With a continued emphasis on our Global Cloud Solutions business, we've seen the results of our efforts over the previous quarters come to fruition as we continue to expand our services suite to match the rapidly growing demand for digital transformation and cybersecurity. In parallel, our Global Payment Solutions business continues to make significant progress as our Merchant Services Group produced record payment volumes in the month of March. We're also encouraged by our progress with LedgerPay as the active testing for the VISA network is in the latter stages, and we're making progress to onboard our pilot customers. All in all, I am pleased with the execution of our operational initiatives and look forward to unlocking the key milestones we have planned for the rest of this year.”
First Quarter 2022 Financial Results
The Company’s audited condensed consolidated interim financial statements for three months and full year ended March 31, 2022 and related management’s discussion and analysis can be found on the Company’s website and on the Company’s issuer profile on SEDAR at www.sedar.com. All figures are expressed in United States dollars unless otherwise stated.
- Revenue increased 256% to $44.9 million compared to $12.6 million for the quarter ended March 31, 2021.
- Gross profit increased 317% to $17.9 million compared to $4.3 million for the quarter ended March 31, 2021.
- Adjusted EBITDA increased to $6.4 million compared to $1.2 million for the quarter ended March 31, 2021.
- Global Payments Solutions revenue increased to $11.2 million compared to approximately $0.4 million for the quarter ended March 31, 2021.
- Payment Processing Volume exceeded $1 billion for the quarter ended March 31, 2022.
- As of March 31, 2022, the Company had $9.5 million in cash.
First Quarter 2022 and Recent Operational Highlights
- Graduated to the OTCQX® Best Market (“OTCQX”)
- Appointed Jana Schmidt to the newly created position of President of Global Payment Solutions
- Appointed Scott Meriwether as Chief Financial Officer and Corporate Secretary
- Received Mastercard certification to process credit and debit payments through its LedgerPay platform
- Executed a bank sponsorship agreement with Peoples Trust Company, which will allow LedgerPay to process payments in Canada
- Announced it has earned a spot on the Globe and Mail’s 2022 Report on Business Women Lead Here list; an annual editorial benchmark that identifies best-in-class executive gender diversity in corporate Canada
- Achieved the Microsoft Cloud Security Advanced Specialization, the 11th and final advanced specialization in the security solutions area.
Conference Call
Quisitive management will hold a conference call today (May 25, 2022) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
Company CEO Mike Reinhart and CFO Scott Meriwether will host the call, followed by a question-and-answer period.
Toll Free dial-in: 1-877-704-4453
International dial-in: 1-201-389-0920
Webcast Link: Here
Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time, and will expire after June 8, 2022.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13729948
For additional information, please visit the Investor Relations section of Quisitive’s website at: https://quisitive.com/investor-relations/.
The following table summarizes results for the first quarter ended March 31, 2022 and 2021:
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Revenue | $ | 44,928 | $ | 12,628 | |||
| Cost of Revenue | 27,020 | 8,338 | |||||
| Gross Margin | 17,908 | 4,290 | |||||
| Operating Expenses | |||||||
| Sales and marketing expense | 3,513 | 1,028 | |||||
| General and administrative | 8,013 | 2,077 | |||||
| Development | 100 | 313 | |||||
| Share-based compensation | 422 | 389 | |||||
| Interest expense | 963 | 279 | |||||
| Grant Income | - | 19 | |||||
| Amortization | 4,270 | 878 | |||||
| Earn-out settlement loss | 72 | - | |||||
| Acquisition Related Compensation | 765 | - | |||||
| Depreciation | 512 | 253 | |||||
| Foreign exchange loss | 310 | 278 | |||||
| Acquisition-related, transaction and other expenses | 362 | 456 | |||||
| Loss Before Income Taxes | (1,394 | ) | (1,680 | ) | |||
| Income tax expense — current | 1,237 | 430 | |||||
| Deferred income tax expense (recovery) | (1,181 | ) | (161 | ) | |||
| Net Loss for the Period | $ | (1,450 | ) | $ | (1,949 | ) | |
About Quisitive:
Quisitive (TSXV: QUIS, OTCQX: QUISF) is a premier, global Microsoft partner that harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate transformational impact for enterprise customers. Our Cloud Solutions business focuses on helping enterprises move, operate, and innovate in the three Microsoft clouds. Centering on our LedgerPay product suite, our Payments Solutions business leverages the Microsoft Azure cloud to transform the payment processing industry into an entirely new source of customer engagement and consumer value. Quisitive serves clients globally from seventeen employee hubs across the world. For more information, visit www.Quisitive.com and follow @BeQuisitive.
Quisitive Investor Contact
Matt Glover and John Yi
Gateway Investor Relations
QUIS@gatewayir.com
949-574-3860
Tami Anders
Chief of Staff
tami.anders@quisitive.com
Reconciliation of Non-GAAP Financial Measures - Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue
Financial Measures and Adjusted EBITDA
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about the Company and measuring our operational results.
The term "Adjusted EBITDA" refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes), changes in fair value of derivatives, transaction and acquisition-related expenses, US payroll protection plan loan forgiveness, earn-out settlement losses and non-recurring development costs associated with obtaining bank sponsorship and operational certifications required to complete LedgerPay. Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.
Management considers these non-operating expenses to be outside the scope of Quisitive's ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period.
Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.
Cautionary Note Regarding Forward Looking Information
This news release contains certain “forward‐looking information” and “forward‐looking statements” (collectively, “forward‐ looking statements”) within the meaning of applicable Canadian securities legislation regarding Quisitive and its business. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward‐looking statements. Forward‐ looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward‐looking statements. These forward-looking statements include, but are not limited to, statements relating to: internal business integrations, onboarding of pilot merchants, completion of additional certifications, expectations regarding go-to-market strategy and future success of the Company’s LedgerPay platform, growth prospects, projected milestones and timelines, and other anticipated benefits and impacts of the Mastercard certification.
The risks and uncertainties that may affect forward-looking statements, or the material factors or assumptions used to develop such forward-looking information, are described under the heading "Risks Factors" in the Company's annual information form dated April 20, 2021, which are available under the Company’s issuer profile on SEDAR at www.sedar.com. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
