Mr. Maury Marks reports

QUORUM ANNOUNCES Q1 2023 RESULTS

Quorum Information Technologies Inc. has released its results today for the first quarter of 2023 ended March 31, 2023. Financial references are expressed in Canadian dollars unless otherwise indicated. Please refer to the MD&A (management's discussion and analysis) and financial statements posted onto SEDAR related to non-IFRS (international financial reporting standards) measures and risk factors.

"We continued our disciplined approach to profitable growth in Q1, with adjusted EBITDA up 51 per cent to $1.3 million and adjusted cash income (ACI) up 277 per cent to $600,000. The ACI results includes $300,000 of spend associated with the once a year North American Dealers Association (NADA) tradeshow, and when factoring this in, our ACI momentum continued sequentially as well," stated Maury Marks, president and chief executive officer. "This increase in profitability, combined with solid growth in a dynamic macro environment, is due to the successful execution of several initiatives, including a more efficient sales strategy prioritizing cross selling and a $2.0-million annual cost reduction plan to drive free cash flow (FCF).

"Through a combination of purposeful product investment and four strategic acquisitions in the last five years Quorum now has a uniquely integrated product suite of 12 essential software solutions and services that we can sell to dealers to drive their business," continued Mr. Marks. "We will remain focused on executing our profitable growth strategy in 2023, despite the macroeconomic environment. I would also like to sincerely thank our employees who are the driving force behind our positive Q1 2023 results; their continued innovation ensures Quorum has a product suite prepared for the future of automotive."

First quarter results

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin was 13 per cent for Q1 2023 as compared with 9 per cent for Q1 2022.
• Adjusted cash income increased by $400,000 to $600,000 as compared with $200,000 Q1 2022.
• Total revenue increased by 7 per cent to $9.9-million in Q1 2023 compared with $9.3-million in Q1 2022.
• Recurring SaaS (software-as-a-service) revenue increased by 6 per cent to $7.0-million in Q1 2023 compared with $6.6-million in Q1 2022.
• Recurring BDC services revenue increased by 11 per cent to $2.8-million in Q1 2023 compared with $2.5-million in Q1 2022.
• Gross margin increased to $4.6-million and 47 per cent of total revenue in Q1 2023 compared with $4.4-million and 47 per cent of total revenue for Q1 2022. Gross margin increased by 5 per cent as compared with Q1 2022.

SaaS-based operational key performance indicators (KPIs) are as shown in the attached table.

Monthly recurring revenue per unit (MRRPU) implies that, as of the end of Q1 2023, each dealership (dealer rooftop) represents approximately $19,600 of SaaS annual recurring revenue (ARR).

Q1 2023 MRRPU decreased as compared with Q1 2022 due to the addition of rooftops as a result of the Accessible Accessories acquisition. The reduction in rooftops, as compared with Q4 2022, was primarily due to a reduction in Accessible Accessories brand's rooftops. Growth in the number of Accessible Accessories rooftops is anticipated as Accessible Accessories and Autovance integration is introduced.

Q1 2023 business highlights

• In January, 2023, Quorum released its 2022 inaugural sustainability statement to address environmental and social topics that are, or may be, financially material to its long-term sustainability.
• In January, 2023, Quorum released its new mobile sales customer relationship (CRM) application. The mobile sales CRM application allows dealership sales staff to have the full power of the DealerMine-branded sales CRM solution in their hand.
• In January, 2023, Quorum completed the integration between General Motors (GM) USA's Service Advisor Vehicle Interface System (SAVI) and the Quorum DMS and the PowerLane software solution. The new GM integration allows onboard vehicle diagnostics data to be delivered to Quorum's DMS and PowerLane solutions when a customer's vehicle is in for service.
• In January, 2023, Quorum completed the rollout of Version 4.6 of the Nissan and Infiniti North America DMS integration. Version 4.6 provides all parties with a more reliable and complete dataset in all areas of dealership operations.
• In January, 2023, Quorum announced that its DealerMine-branded on-line service scheduling (OSS) has a new user interface and an improved user experience. Additionally, DealerMine's OSS was enhanced to allow for direct integration with select OEM (original equipment manufacturer) maintenance menus and vehicle recall information.

Quorum Q1 2023 annual results conference call details and investor presentation

Maury Marks, president and chief executive officer, and Marilyn Bown, chief financial officer, will present the Q1 2023 results at a conference call with concurrent audio webcast, scheduled for:

Date:  Thursday, May 25, 2023

Time:  11 a.m. MT (1 p.m. ET)

Dial-in number: toll-free North America:  1-888-660-6411

Conference ID:  2512218

An updated investor presentation, replay of the results conference call and transcripts of the conference call, will also be available at the Quorum website.

Quorum is a North American software-as-a-service software and service company providing essential enterprise solutions that automotive dealerships and original equipment manufacturers rely on for their operations, including:

• Quorum's dealership management system (DMS), which automates, integrates and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction;
• DealerMine CRM, a sales and service customer relationship management (CRM) system and set of business development centre services that drive revenue into the critical sales and service departments in a dealership;
• Autovance, a modern retailing platform that helps dealerships attract more business through digital retailing, improve in-store profits and closing rates through its desking tool, and maximize their efficiency and CSI through Autovance's F&I menu solution.
• Accessible accessories, a digital retailing platform that allows franchised dealerships to efficiently increase their vehicle accessory revenue.

Quorum is traded on the TSX Venture Exchange under the symbol QIS.

We seek Safe Harbor.