Mr. Bill Wood reports

SYLOGIST REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Sylogist Ltd. has released its financial results for the fourth quarter and full year ended Dec. 31, 2023.

• Total revenue of $16.2-million, up 5.4 per cent year-over-year (Y/Y);
• Recurring revenue of $10.5-million, up 8.5 per cent Y/Y;
• Software-as-a-service subscription revenue of $7-million, up 15.7 per cent Y/Y;
• Total annual recurring revenue of $42.2-million, up 11 per cent Y/Y;
• SaaS ARR at $27.6-million, up 13 per cent Y/Y;
• SaaS revenue as percentage of total recurring revenue at 67 per cent;
• SaaS net revenue retention of 104 per cent;
• Gross profit margin of 60 per cent;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.8-million and adjusted EBITDA margin of 29.4 per cent;
• Bookings of $7.6-million;
• RPO of $31-million;
• Repurchase of 101,500 shares at a total cost of $700,000.

• Total revenue of $65.5-million, up 16.1 per cent Y/Y;
• Recurring revenue of $40.2-million, up 10.2 per cent Y/Y;
• SaaS subscription revenue of $26.1-million, up 14.1 per cent Y/Y;
• SaaS revenue as percentage of total recurring revenue at 65 per cent;
• Gross profit margin of 60 per cent;
• Adjusted EBITDA of $17.3-million and adjusted EBITDA margin of 26.3 per cent;
• $4-million repayment on revolving credit facility;
• Repurchase of 343,600 shares at a total cost of $2.1-million

*Y/Y denotes comparison with the 12-month period ended Dec. 31, 2022.

Commentary

"Our team delivered continuing strong results in Q4 and throughout 2023, pushing forward our plans to make Sylogist into a SaaS leader in the public sector," said Bill Wood, chief executive officer of Sylogist. "Our success metrics to watch, including annual recurring growth, margins, net revenue retention and customer net promoter score, all trended to new highs for the company in Q4. We anticipate this momentum to continue in 2024.

"Throughout 2024, particularly in the latter half of the year, we foresee SaaS acceleration driven by expanding traction in the Sylogist Mission sector, new contributions from our Sylogist Ed and Gov sectors, and our growing partner community. Our focus remains on profitable organic growth while being prepared to seize strategic opportunities for scale or innovation, as seen with our recent Time Clock Now tuck-in acquisition."

Conference call details

The company will host a conference call at 8:30 a.m. Eastern Time on March 14, 2024. Mr. Wood, president and chief executive officer, and Sujeet Kini, chief financial officer, will present the company's financial results, discuss performance, as well as outlook for 2024 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, March 14, 2024

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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