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Tecsys Reports Financial Results for the First Quarter of Fiscal 2023 SaaS revenue up 42%
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First Quarter Fiscal 2023 Results Conference Call
Montreal, September 8, 2022— Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the first quarter of fiscal year 2023, ended July 31, 2022. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
First Quarter Highlights:
- SaaS revenue increased by 42% to $8.0 million, up from $5.7 million in Q1 2022.
- SaaS subscription bookingsi (measured on an ARRi basis) were $3.9 million, up 256% compared to $1.1 million in the first quarter of 2022.
- SaaS Remaining Performance Obligation (RPOi) increased by 58% to $102.5 million at July 31, 2022, up from $65.0 million at the same time last year.
- Annual Recurring Revenue (ARRi) at July 31, 2022 was up 21% to $65.1 million compared to $53.7 million at July 31, 2021.
- Professional services revenue was up 4% to $13.6 million compared to $13.1 million in Q1 2022.
- Total revenue excluding hardware revenue was $30.4 million, 11% higher than $27.5 million reported for Q1 2022.
- Gross margin was 43% compared to 43% in the same period in fiscal 2022.
- Total gross profit increased to $14.8 million, up 2% from $14.4 million in Q1 2022.
- Operating expenses increased to $14.7 million, higher by $1.3 million or 10% compared to $13.3 million in Q1 2022.
- Profit from operations was $0.1 million, down from $1.1 million in Q1 2022.
- Net profit was $40 thousand or $0.00 per share on a fully diluted basis compared to a net profit of $0.2 million or $0.02 per share for the same period in fiscal 2022.
- Adjusted EBITDAii was $1.5 million, down 40% compared to $2.5 million reported in Q1 2022.
“We are pleased to report a very strong start to Fiscal 2023. Our solid bookings for the quarter span our vertical markets and included three new hospital networks. We believe this serves as a testament that our SaaS solution suite is well-suited to the demands of a market ripe for transformation,” said Peter Brereton, president and CEO of Tecsys, Inc. “Supply chain organizations around the world have been facing tough challenges when it comes to consumer expectations, labor shortages and legacy software unable to manage modern fulfillment complexity. With supply chain gaining so much mindshare as a strategic lever in organizations, we are seeing demand signals and buyer intent for more robust supply chain software. And we are fully prepared with the right software and the right market position to deliver customer and shareholder value.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “With another record quarter of SaaS revenue representing a 42% increase over last year, solid revenue growth and substantial SaaS ARR bookings, we are pleased with our topline growth. Our SaaS ARR bookings are up 256% over last year, which translates into a positive impact on RPO up 58% year over year. As we continue to see rapid growth in bookings and RPO, we continue to invest in cloud infrastructure, R&D, and Sales and marketing to take advantage of this evolving market opportunity.”
On September 8, 2022, the Company declared a quarterly dividend of $0.07 per share payable on October 7, 2022 to shareholders of record at the close of business on September 23, 2022.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
First Quarter Fiscal 2023 Results Conference Call
Date: September 9, 2022
Time: 8:30am EDT
Phone number: (800) 768-6727 or (416) 620-9188
The call can be replayed until September 16, 2022 by calling:
(800) 558-5253 or (416) 626-4100 (access code:22020336)
Tecsys is a global provider of supply chain solutions that equip the borderless enterprise for growth. Organizations thrive when they have the software, technology and expertise to drive operational greatness and deliver on their brand promise. Spanning healthcare, retail, service parts, third-party logistics, and general wholesale high-volume distribution industries, Tecsys delivers dynamic and powerful solutions for warehouse management, distribution and transportation management, supply management at point of use, retail order management, as well as complete financial management and analytics solutions. Tecsys’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For more information on Tecsys, visit www.tecsys.com.
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The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management’s beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.’s business can be found in the MD&A section of the Company’s annual report and the most recently filed annual information form. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright © Tecsys Inc. 2022. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
i See Key Performance Indicators in Management’s Discussion and Analysis of the Q1 2023 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q1 2023 Financial Statements.