Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the second quarter of fiscal 2025, ended October 31, 2024. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“Tecsys delivered strong second-quarter results, marked by major milestones in our SaaS business,” said Peter Brereton, president and CEO at Tecsys. “We crossed some key thresholds as RPO surpassed $200 million and ARR exceeded $100 million, demonstrating the strength of our SaaS strategy and the trust our customers place in us. We are seeing the positive impact of our investments in innovation and customer success, positioning us well to capitalize on emerging opportunities.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “Our fiscal 2025 financial performance reflects steady progress across key metrics, with year-to-date SaaS bookings up 20% over last year and our SaaS margins continuing to improve as we scale the business and continue to invest in platform optimization.”
Second quarter highlights:
- SaaS revenue increased by 34% to $16.1 million, up from $12.1 million in Q2 2024.
- SaaS subscription bookingsi (measured on an ARRi basis) were $3.7 million, flat compared to the second quarter of fiscal 2024.
- SaaS Remaining Performance Obligation (RPOi) increased by 39% to $203.8 million at October 31, 2024, up from $146.7 million at the same time last year.
- Total revenue increased to $42.4 million compared to $41.5 million in Q2 2024.
- Net profit was $0.8 million or $0.05 per share on a fully diluted basis in Q2 2025, compared to a net loss of $0.3 million or $0.02 per share for the same period in fiscal 2024.
- Adjusted EBITDAii was $2.9 million compared to $1.0 million reported in Q2 last year.
- In the second quarter of fiscal 2025, Tecsys acquired 51,600 of its outstanding common shares for approximately $2.1 million as part of its ongoing Normal Course Issuer Bid, compared to 25,800 shares acquired in the same period last year for approximately $0.7 million.
Year-to-date performance for first half of fiscal 2025:
- SaaS revenue increased by 33% to $31.4 million, up from $23.6 million in the same period of fiscal 2024.
- SaaS subscription bookingsi (measured on an ARRi basis) increased by 20% to $6.8 million, compared to $5.7 million in the same period of fiscal 2024.
- Total revenue increased to $84.7 million compared to $83.5 million in the same period of fiscal 2024.
- Net profit was $1.6 million ($0.11 per basic share or $0.10 per fully diluted share) in the first half of fiscal 2025, compared to a net profit of $0.8 million ($0.06 per basic and fully diluted share) for the same period in fiscal 2024.
- Adjusted EBITDAii was $5.5 million compared to $4.2 million reported in the same period of fiscal 2024.
- In the first half of fiscal 2025, Tecsys acquired 111,200 of its outstanding common shares for approximately $4.3 million as part of its ongoing Normal Course Issuer Bid, compared to 25,800 shares acquired in the same period last year for $0.7 million.
Financial guidance:
Tecsys is maintaining FY25 guidance on SaaS revenue growth at 30-32% as well as FY25 and FY26 adjusted EBITDA margins at 8-9% and 10-11%, respectively. Based on the ongoing unpredictability of hardware revenue and a rapidly evolving business model that is impacting professional services, Tecsys is revising Fiscal 2025 total revenue guidance to roughly flat.
On December 4, 2024, the Company declared a quarterly dividend of $0.085 per share to be paid on January 3, 2025 to shareholders of record on December 18, 2024.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
i See Key Performance Indicators in Management’s Discussion and Analysis of the Q2 2025 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q2 2025 Financial Statements
Q2 2025 Financial Results Conference Call
Date: December 5, 2024
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until December 12, 2024, by calling:
888-660-6345 or 646-517-4150 (access code: 91117#)
