Tenth consecutive quarter of record revenue; SaaS revenue up 47% year-over-year
Montreal, September 9, 2021— Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the first quarter of fiscal year 2022, ended July 31, 2021. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
First Quarter Highlights:
- SaaS revenue increased by 47% to $5.7 million in Q1 2022, up from $3.8 million in Q1 2021.
- Annual Recurring Revenue (ARRi) at July 31, 2021 was up 9% to $53.7 million compared to $49.3 million at July 31, 2020.
- During Q1 2022, SaaS subscription bookingsi (measured on an ARRi basis) were $1.1 million, down 54% compared to $2.4 million in the first quarter of 2021.
- Professional services revenue was up 17% to $13.1 million in Q1 2022 compared to $11.2 million in Q1 2021.
- Total revenue was a record $33.2 million, 18% higher than $28.1 million reported for Q1 2021.
- Gross margin was 43% compared to 48% in the prior year quarter, negatively impacted by a weaker US dollar, investment in our key growth initiatives and revenue mix. Total gross profit increased to $14.4 million, up 7% from $13.5 million in Q1 2021.
- Operating expenses increased to $13.3 million, higher by $1.8 million or 16% compared to $11.5 million in Q1 fiscal 2021 with continuing investment in sales and marketing as well as research and development.
- Profit from operations in Q1 2022 was $1.1 million, down from $2.0 million in Q1 2021.
- Net profit was $0.2 million or $0.02 per share on a fully diluted basis in Q1 2022 compared to a net profit of $1.2 million or $0.08 per share on a fully diluted basis for the same period in fiscal 2021.
- Adjusted EBITDAii was $2.5 million in Q1 2022, down 30% compared to $3.5 million reported in Q1 2021.
“Fiscal 2022 is off to a very positive start. Our tenth consecutive quarter of record revenue demonstrates our sustained growth trajectory and is composed of a healthy blend of new customers and expanded investments from our existing accounts,” said Peter Brereton, president and CEO of Tecsys, Inc. “SaaS bookings demonstrated some lumpiness being down after a very strong Q4. We saw legal and procurement bottlenecks as the primary factor here. That said, we added two new hospital networks in Q1 and have already added another in August. Our strong performance is being led by our truly adaptable agile solutions, which are resonating extremely well in a climate more attuned to the importance of supply chain execution excellence. As we continue to set records for the company on a quarterly sequential basis, we expect our very strong pipeline to yield accelerated growth and sustained upside.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “In spite of significant foreign currency headwinds, we are pleased to report another solid quarter of revenue growth and profitability. In fact, on a constant currency basis our first quarter fiscal 2022 revenue grew by about 25% compared to the same period last year, with SaaS revenue once again being a key driver.”
On September 9, 2021, the Company declared a quarterly dividend of $0.065 per share payable on October 8, 2021 to shareholders of record at the close of business on September 24, 2021.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
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First Quarter of Fiscal 2022 Results Conference Call
Date: September 9, 2021
Time: 1:00pm EST
Phone number: (877) 232-4484 or (416) 981-9028
The call can be replayed until September 16, 2021 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 21996813).
About Tecsys
Tecsys is a global provider of supply chain solutions that equip the borderless enterprise for growth. Organizations thrive when they have the software, technology and expertise to drive operational greatness and deliver on their brand promise. Spanning healthcare, retail, service parts, third-party logistics, and general wholesale high-volume distribution industries, Tecsys delivers dynamic and powerful solutions for warehouse management, distribution and transportation management, supply management at point of use, retail order management, as well as complete financial management and analytics solutions. Tecsys’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For more information on Tecsys, visit www.tecsys.com.
Contact
- Solutions and General info: info@tecsys.com
- Investor Relations: investor@tecsys.com
- Public Relations: adam.polka@tecsys.com
- By phone: (514) 866-0001 or (800) 922-8649
Forward Looking Statements
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management’s beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.’s business can be found in the MD&A section of the Company’s annual report and annual information form for the fiscal year ended April 30, 2021. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright © Tecsys Inc. 2021. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.