Mr. Maury Marks reports

QUORUM ANNOUNCES Q3 2023 RESULTS

Quorum Information Technologies Inc. has released its results for the third quarter of 2023, ended Sept. 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 continued to focus on profitable growth in Q3 and as a result our adjusted EBITDA is up 15 per cent to $2.0-million and adjusted cash income (ACI) is up 13 per cent to $1.3-million," stated Maury Marks, president and chief executive officer. "Although we continue to deal with the dynamic macro-environment, our more efficient sales strategy that prioritizes cross-selling continues to drive growth and cost savings. That strategy, combined with our BDC gross margin expansion and a continued focus on company-wide cost savings, produced record adjusted EBITDA and ACI margins for the quarter.

"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. "I would also like to sincerely thank our employees who are the driving force behind our positive Q3 2023 results; their continued innovation ensures Quorum has a product suite prepared for the future of automotive."

Third quarter results

• Adjusted EBITDA margin was 19 per cent for Q3 2023 as compared with 17 per cent for Q3 2022.
• Adjusted cash income increased by 13 per cent to $1.3-million, as compared with $1.1-million Q3 2022.
• Total revenue increased by 6 per cent to $10.4-million in Q3 2023 compared with $9.9-million in Q3 2022.
• Recurring SaaS (software-as-a-service) revenue increased by 1 per cent to $7.1-million in Q3 2023 compared with $7.0-million in Q3 2022.
• Recurring BDC services revenue increased by 6 per cent to $2.8-million in Q3 2023 compared with $2.6-million in Q3 2022.
• Gross margin of $4.9-million and 47 per cent of total revenue in Q3 2023 compared with $4.9-million and 49 per cent of total revenue for Q3 2022. Gross margin increased by 1 per cent as compared with Q3 2022.

Quorum Q3 2023 results conference call details and investor presentation

Maury Marks, president and chief executive officer, and Marilyn Bown, chief financial officer, will present the Q3 2023 Results at a conference call with concurrent audio webcast, scheduled for:

Date:   Thursday, Nov. 30, 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 company website.

About Quorum Information Technologies Inc.

Quorum is a North American software-as-a-service 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 customer relationship management (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 Information Technologies is traded on the TSX Venture Exchange (TSX-V) under the symbol QIS.

We seek Safe Harbor.