Mr. Maury Marks reports

QUORUM ANNOUNCES Q2 2023 RESULTS

Quorum Information Technologies Inc. has released its results for the second quarter of 2023, which ended June 30, 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 are happy to report record total revenue of $10.0-million, a first for Quorum, and improved profitability for the second quarter of 2023. Throughout Q2 2023, we continued our disciplined approach to profitable growth, with adjusted EBITDA up 17 per cent to $1.7-million and adjusted cash income (ACI) up 46 per cent to $1.0-million," stated Maury Marks, president and chief executive officer.

"Q2 2023 was also a very exciting quarter as it marked our fifth acquisition in six years, VINN Automotive Technologies Ltd. VINN offers an automotive marketplace that will complement Quorum's dealership vehicle sales solution as we continue to build our product suite capability beyond the DMS solution," continued Mr. Marks.

"Through a combination of purposeful product investment and strategic acquisitions, Quorum now has a uniquely integrated product suite of 13 essential software solutions and services that we can sell to dealers to drive their business," stated Mr. Marks. "We will remain focused on executing our profitable growth strategy throughout the remainder of 2023. I would also like to sincerely thank our employees who are the driving force behind our positive Q2 2023 results; their continued innovation ensures Quorum has a product suite prepared for the future of automotive."

Second quarter results:

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin was 17 per cent for Q2 2023, as compared with 14 per cent for Q2 2022;
• Adjusted cash income increased by 46 per cent or $300,000 to $1.0-million, as compared with $700,000 in Q2 2022;
• Total revenue increased by 2 per cent to $10.0-million in Q2 2023, compared with $9.8-million in Q2 2022;
• Recurring SaaS (software-as-a-service) revenue increased by 1 per cent to $7.1-million in Q2 2023, compared with $7.0-million in Q2 2022;
• Recurring BDC services revenue increased by 3 per cent to $2.8-million in Q2 2023, compared with $2.7-million in Q2 2022;
• Gross margin increased to $4.9-million and 48 per cent of total revenue in Q2 2023, compared with $4.7-million and 48 per cent of total revenue for Q2 2022. Gross margin increased by 3 per cent as compared with Q2 2022.

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

The reduction in rooftops, as compared with Q1 2023, was primarily due to a reduction in DealerMine brand's rooftops as an increasing number of dealerships want a unified CRM (customer relationship management) provider. To meet the market demand and to complement the company's best-in-class service CRM solution, DealerMine now has a more compelling sales CRM solution with the recent launch of the sales CRM mobile app.

Q2 2023 business highlights:

• In June, 2023, Quorum welcomed Damien Leonard, president of Pinetree Capital, to the board of directors.

Quorum Q2 2023 results conference call details and investor presentation

Mr. Marks and Marilyn Bown, chief financial officer, will present the Q2 2023 results at a conference call with concurrent audio webcast, scheduled as follows.

Date:  Thursday, Aug. 24, 2023

Time:  11 a.m. MT (1 p.m. ET)

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

Conference ID No.:  2512218

A webcast will be available.

An updated investor presentation, a replay of the results conference call and transcripts of the conference call will also be available on the company's website.

About Quorum Information Technologies Inc.

Quorum is a North American SaaS software and services company providing essential enterprise solutions that automotive dealerships and original equipment manufacturers (OEMs) 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 CRM system and set of business development centre services that drives 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 accessories revenue;
• VINN Automotive, a premier automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while helping retailers sell more efficiently.

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

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