Mr. Mike Reinhart reports

QUISITIVE REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Quisitive Technology Solutions Inc. has released financial results for the third quarter ended Sept. 30, 2023.

Management commentary

"We've recently begun to experience stable growth, a testament to the successful implementation of our strategic cost-cutting and disciplined management," said Quisitive chief executive officer Mike Reinhart. "Over the last six months, our sales figures have demonstrated resilience and stability, with our global cloud solutions business showing a promising rebound. We anticipate this trend in our financial health and global cloud solutions to persist in the coming quarters as we continue to execute prudent financial management and navigate through challenging market conditions."

"Yesterday's announcement of the sale of PayiQ is a significant next step in our payments solutions business as we execute a revised strategy that alleviates the pressure of investment in the platform while providing a tremendous opportunity for the development of the solution. Across both cloud and payments, the adjustments to strategy have positioned us for improved results today and moving forward. We remain focused on diligent execution to continue to enhance our trajectory through the remainder of the year."

Third quarter 2023 financial results

The company's condensed consolidated interim financial statements for the three months ended Sept. 30, 2023, and related management's discussion and analysis can be found on the company's website and the company's issuer profile on SEDAR+. All figures are expressed in United States dollars unless otherwise stated.

• Revenue decreased 2 per cent to $44.4-million compared with $45.3-million for the quarter ended June 30, 2023. Revenue decreased 9 per cent to $44.4-million compared with $48.8-million for the quarter ended Sept.30, 2022.
• Gross profit increased 10 per cent to $18.3-million compared with $16.7-million for the quarter ended June 30, 2023. Gross profit decreased 10 per cent to $18.3-million compared with $20.3-million for the quarter ended Sept. 30, 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 61 per cent to $7-million compared with $4.4-million for the quarter ended June 30, 2023. Adjusted EBITDA decreased 8 per cent to $7-million compared with $7.6-million for the quarter ended Sept. 30, 2022.
• Global cloud solutions revenue was $30.7-million compared with $30.2-million for the quarter ended June 30, 2023, and compared with $36-million for the quarter ended Sept. 30, 2022.
• Global cloud solutions gross profit as a percentage of revenue was 43 per cent compared with 39 per cent for the quarter ended June 30, 2023, and compared with 40 per cent for the quarter ended Sept. 30, 2022.
• Global payment solutions revenue decreased to $13.7-million compared with $15.1-million for the quarter ended June 30, 2023. Global payment solutions revenue increased to $13.7-million compared with $12.8-million for the quarter ended Sept. 30, 2022.
• The company's total senior debt to adjusted EBITDA ratio was 2.62:1 at Sept. 30, 2023.

Third quarter 2023 and recent operational highlights:

• Announced sale of PayiQ;
• Recognized as the 2023 Solution Partner of the Year by Board International at the Board Americas Partner Summit for its outstanding channel marketing collaboration and introduction of the Microsoft Dynamics 365 Trial Balance Extractor solution to Board;
• Announced the appointment of two new directors to the board of directors Collaborated with Microsoft to leverage new health care data solutions in Microsoft Fabric for Ontario Workers Network, the Ottawa Hospital and other hospitals in the network;
• Ranked No. 2 on the Dallas Business Journal's ninth annual Middle Market 50 List;
• Selected for the Dallas Journal's ninth annual Middle Market 50 List;
• Completed the migration of a global manufacturer of diversified products, from Microsoft Dynamics AX to Dynamics 365 Finance & Supply Chain Management;
• Awarded the Information Protection and Governance and Service advanced specializations, marking the 15th and 16th Microsoft advanced specializations awarded to the company;
• Announced the launch of MazikCare Care Planner, a new care treatment pathing application designed to streamline patient care co-ordination and improve communication between health care providers and patients;
• Collaborated with Heart-Tech Health to implement MazikCare as an integrated care delivery tool to prevent women's heart disease;
• Announced the successful migration of its patented AgeChecker.Net to PayiQ's payments processing, a significant milestone in its continued evolution of the PayiQ cloud-enabled payments platform

Conference call

Quisitive management will hold a conference call today (Nov. 29, 2023) at 5:30 p.m. Eastern Time (2:30 p.m. Pacific Time) to discuss these results.

Company CEO Mr. Reinhart and chief financial officer Scott Meriwether will host the call, followed by a question-and-answer period.

Toll-free dial-in: 1-877-704-4453

International dial-in: 1-201-389-0920

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

A telephonic replay of the conference call will be available after 8:30 p.m. Eastern Time today and will expire after Dec. 13, 2023.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13742269

For additional information, please visit the investor relations section of Quisitive's website.

The attached table summarizes results for the third quarter ended Sept. 30, 2023, and 2022.

About Quisitive Technology Solutions Inc.

Quisitive is a premier, global Microsoft partner that harnesses the Microsoft cloud platform and complementary technologies, including custom solutions and first party offerings, to generate transformational impact for enterprise customers. Its cloud solutions business focuses on helping enterprises move, operate and innovate in the three Microsoft clouds. Quisitive serves clients globally from 17 employee hubs across the world.

We seek Safe Harbor.