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VIQ Solutions Inc
Symbol VQS
Shares Issued 161,294,113
Close 2018-04-23 C$ 0.25
Market Cap C$ 40,323,528
Recent Sedar Documents

VIQ Solutions talks $11.7M (U.S.) revenue in 2017

2018-04-24 10:00 ET - News Release

Mr. Sebastien Pare reports

VIQ SOLUTIONS INC. REPORTS FULL YEAR 2017 RESULTS

VIQ Solutions Inc. has released its financial results for the year ended Dec. 31, 2017. Results are reported in U.S. dollars and are prepared in accordance with international financial reporting standards.

Consolidated annual revenue was approximately $11.7-million, representing 36-per-cent growth over the previous year while the company accelerated its transition from a predominantly product-based to artificial intelligence and software-as-a-service company.

"Fiscal 2017 was a transformational year for VIQ," stated Sebastien Pare, VIQ's president and chief executive officer. "The company successfully established a strong foundation for our transition to SaaS and artificial intelligence-based revenue from its new products. We also protected an exceptional earnings-growth trajectory for recurring revenue and maintained our gross margins while scaling up the transition.

"Our 36-per-cent revenue growth, AI innovation investments, intellectual property, sales and expanding customer base yielded strong overall results consistent with our strategic plan," said Mr. Pare.

"Investments in research and development, sales, cloud infrastructure and transcription services increased to maintain our 2018 growth trajectory. Recurring revenue grew by 23 per cent over 2016 as the company's cloud platform continued to gain traction. VIQ ended 2017 with a cash balance of approximately $4.1-million and no debt.

"VIQ's highest growth opportunity is in artificial intelligence and digital-content analytics of customer content securely captured in the rapidly expanding SaaS and government-secured cloud markets," continued Mr. Pare.

"The size, quality and high profile of our 2018 sales pipeline, new 2017 customer wins and paid pilots currently under way, reinforces our belief that VIQ'S growth lies in extending digital-content capture. This includes management and mining of highly secure content by new AI-based services through voice-to-text, natural language processing and video analytics."

Conference call to discuss full-year 2017 results

The company will hold a conference call to discuss the 2017 full-year results. The call will consist of a brief update by VIQ president and chief executive officer Mr. Pare, followed by a question period. Interested parties can participate in the conference call.

The call will be held on Thursday, April 26, at 4 p.m. ET. Participants may join the conference call by dialling 1-855-223-2840 within North America or 1-647-788-4945 outside of North America five to 10 minutes prior to the scheduled start time. The conference ID number is 7779134.

VIQ Solutions fourth quarter earnings call

A telephone replay will be available for two business days, beginning on April 26. To access the replay, please dial 1-855-859-2056 and follow the prompt with the passcode 7779134.

2017 business highlights

The year was one of significant growth for VIQ Solutions, the start of an incremental transition to a software-as-a-service and technological innovation company:

  • Revenues increased 36 per cent to $11.7-million, from $8.6-million in 2016.
  • Year over year, software revenue increased by 52 per cent and services by 29 per cent.
  • Recurring revenue reached $9.1-million in 2017, up 23 per cent from the previous year due to a combination of new wins, organic growth, transition to a software-as-a-service company and convergence of integrated technology and transcription services in Australia.
  • VIQ accelerated its transition to an SaaS revenue model to increase recurring revenue and drive VIQ's future growth.
  • The company launched CyberCrypt as an ultrasecure extension in cloud computing, with advanced cybersecurity and content protection for the world's most security-conscious organizations.
  • CyberCrypt is being deployed in two large-scale paid pilots with international agencies, which are anticipated to convert to full SaaS deployments in 2018. These paid pilots have not been announced at the request of VIQ's customers.
  • VIQ completed a brokered and non-brokered private placement of $3.9-million to accelerate the commercialization of aiAssist, the artificial intelligence extension of VIQ's existing platform.
  • By the end of the year, the contracted backlog of aiAssist orders exceeded $400,000. These orders have not been announced. VIQ expects to release the size of this contracted backlog in the second half of 2018.
  • VIQ signed two strategic OEM (original equipment manufacturer) agreements with Nuance: one in Australia for Dragon Speech Recognition, aimed at the medical and legal markets, and the second in North America for NTE, Nuance's multispeaker speech recognition.
  • VIQ made several announcements throughout the year, including:
    • Several new wins with hospitals and medical agencies around the world for ultrasecure digital evidence capture and content management, leading-edge VoIP (voice over Internet protocol) dictation, and secure cloud-based transcription work flows;
    • First customer on the new SaaS platform, the United Kingdom Nursing and Midwifery Council, on a monthly subscription basis;
    • First customer on SatCon Mobile App integrated with speech recognition;
    • Several wins in Australia for integrated technology and transcription services;
    • Significant EMEA growth with multiple new wins in Europe, the Middle East and Africa;
    • New wins with leading United States transcription providers for complete digital-statement capture, storage and transcription work flows that emphasize client security and privacy.
  • VIQ expanded its North American sales team to focus on growing sales of aiAssist.

Financial results for 2017

The audited consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the year ended Dec. 31, 2017, will be posted on SEDAR. The financial information included in this news release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended Dec. 31, 2017, including the notes thereto.

About VIQ Solutions Inc.

VIQ is the leading technology and service platform provider for digital-evidence capture and content management. The company's secure modular software allows customers to onboard the VIQ platform at any stage of their organization's digitization, from the digital capture of video and audio to on-line collaboration, mobility, data analytics and integration with sensors, facial recognition, speech recognition and case-management or patient-record systems. VIQ's technology leads the industry in security, meeting the highest international standards for digital/cybersecurity and privacy, including military and medical regulations.

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