Mr. Bill Wood reports

SYLOGIST REPORTS STRONG THIRD QUARTER 2023 RESULTS

Sylogist Ltd. has released its Q3 financial results for the three months ended Sept. 30, 2023.

Q3 2023 financial highlights:

• Record revenue of $16.8-million, up 18 per cent year over year (16 per cent constant currency);
• SaaS (software as a service) ARR (annual recurring revenue) growth of 26 per cent year over year to $27.7-million;
• Recurring revenue growth of 12 per cent year over year;
• SaaS NRR (net revenue retention) of 108 per cent;
• Gross profit margin of 61 per cent;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 26 per cent, or $4.4-million;
• Bookings of $7.7-million, up 26 per cent quarter over quarter;
• Backlog of $32.2-million, up 12 per cent quarter over quarter;
• $4-million repayment on revolving credit facility.

"Our strong Q3 performance is further evidence of our profitable organic growth acceleration as a leading SaaS provider to the public sector," commented Bill Wood, chief executive officer of Sylogist. "Looking ahead, we see continuing growth with leverage, particularly in the back half of 2024 as our SaaS revenues and partner strategy magnify."

Sylogist's board of directors approved a dividend of one cent per share for shareholders of record on Nov. 30, 2023 (ex dividend date of Nov. 29, 2023) to be paid on Dec. 13, 2023. Such dividend is treated as an eligible dividend under the Income Tax Act (Canada).

The company's board of directors has approved the renewal of its normal course issuer bid (NCIB) when it expires on Nov. 16, 2023, providing optionality to its capital allocation strategy. The NCIB renewal remains subject to Toronto Stock Exchange approval.

Conference call details

The company will host a conference call at 8:30 a.m. Eastern Time on Nov. 9, 2023. Bill Wood, president and chief executive officer, and Sujeet Kini, chief financial officer, will present the company's financial results and discuss performance as well as outlook for the remainder of 2023 and beyond. A question-and-answer will follow, as time allows, and a replay of the call will be archived in the investor section of the company's website.

Date:  Thursday, Nov. 9, 2023

Time:  8:30 a.m. EDT

Participant toll-free dial-in number:  1-800-319-4610

Participant dial-in number:  1-416-915-3239

Please dial in before the start of the conference to secure a line and avoid delays.

About Sylogist Ltd.

Sylogist provides mission-critical SaaS solutions to over 2,000 public-sector customers globally across the government, non-profit and education verticals. The company's stock is traded on the Toronto Stock Exchange under the symbol SYZ.

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