Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the third quarter of fiscal year 2021, ended January 31, 2021. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Third Quarter Highlights:
- SaaS revenue increased by 89% to $4.7 million in Q3 2021, up from $2.5 million in Q3 2020.
- Cloud, maintenance and subscription revenue increased 26% year-over-year to $13.4 million in Q3 2021, up from $10.6 million in Q3 2020. The performance was primarily driven by SaaS.
- Annual Recurring Revenue (ARRi) at January 31, 2021 was up 20% to $50.8 million compared to $42.5 million at January 31, 2020 and up 3% sequentially from October 31, 2020 on a constant currency basis.
- During Q3 2021, SaaS subscription bookingsi(measured on an ARRi basis) were $1.0 million, down 49% compared to $2.0 million in the third quarter of 2020, while YTD bookings were up 29% compared to last year.
- Professional services revenue was up 24% to $12.3 million in Q3 2021 compared to $9.9 million in Q3 2020. Professional services bookingsiwere down 19% to $10.5 million in the third quarter of fiscal 2021 compared to $12.9 million in the same period last year, while YTD bookings were up 20% compared to last year.
- Total revenue was a record $31.9 million, 19% higher than $26.8 million reported for Q3 2020.
- Gross margin was 48% compared to 48% in the prior year quarter. Total gross profit increased to $15.4 million, up 20% from $12.8 million in Q3 2020.
- Operating expenses increased to $12.8 million, higher by $1.3 million or 12% compared to $11.4 million in Q3 fiscal 2020 with continuing investment in sales and marketing as well as research and development.
- Profit from operations in Q3 2021 was $2.6 million, up 89% from $1.4 million in Q3 2020.
- Net profit was $1.8 million or $0.12 per share on a fully diluted basis in Q3 2021 compared to a net profit of $0.8 million or $0.06 per share for the same period in fiscal 2020.
- Adjusted EBITDAiiwas $4.0 million in Q3 2021, up 50% compared to $2.6 million reported in Q3 2020.
“Our performance for the third quarter of fiscal 2021 continues to reflect momentum in the market for Tecsys solutions,” said Peter Brereton, president and CEO of Tecsys Inc. “This is our eighth straight quarter reporting record revenue. The second major COVID wave delayed some deals into our fourth quarter resulting in a significant new business pipeline for the last quarter of our fiscal year. As that wave subsides, these deals are coming in. We were delighted to sign six new accounts in the quarter, three of which were major accounts that signed small initial orders with some significant growth to come. Our developing partner ecosystem continues to have a solid impact on our pipeline and deal flow.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “We expect to see our SaaS revenue continue on its growth trend and we expect this to come from both expansion and migrations of our base customers as well as from new customer wins. With regard to new customer wins, we are pleased with the addition of two new hospital networks during the quarter.”
Year-to-date performance for first nine months of fiscal 2021 ended January 31, 2021
Highlights:
- SaaS revenue for the nine-month period increased 116% to $13.7 million, up from $6.3 million in the first nine months of fiscal 2020.
- Cloud, maintenance and subscription revenue increased 28% year-over-year to $39.0 million in the first nine months of fiscal 2021, up from $30.4 million in the prior year, driven primarily by SaaS revenue.
- SaaS subscription bookingsiincreased 29% to $6.1 million in the first nine months of fiscal 2021 compared to $4.7 million in the prior year period.
- Professional services revenue was up 18% to $35.3 million in the first nine months of fiscal 2021 compared to $29.8 million in the prior year period. Professional services bookings were up 20% to $36.1 million in the first nine months of fiscal 2021 compared to $30.0 million in the same period last year.
- Revenue for the first nine months of fiscal 2021 was $90.7 million, up 18% from $77.1 million reported in the previous fiscal year period.
- Total gross profit increased to $44.9 million, up $7.5 million or 20% in the first nine months of fiscal 2021 compared to $37.4 million in the same prior year period.
- Total gross profit margin remained flat at 49% compared to the first nine months of fiscal 2020.
- Net profit for the first nine months of fiscal 2021 was $5.2 million, or $0.35 per diluted share, compared to a profit $2.0 million or $0.15 per share, for the same period in fiscal 2020.
- Adjusted EBITDAiifor the first nine months of fiscal 2021 was $12.3 million, up 48% compared to $8.3 million reported for the same period in fiscal 2020.
On February 24, 2021, the Company declared a quarterly dividend of $0.065 per share payable on April 8, 2021 to shareholders of record at the close of business on March 18, 2021.
Third Quarter Fiscal 2021 Results Conference Call
Date: February 25, 2021
Time: 8:30am EST
Phone number: (800) 698-1231 or (416) 981-0147
The call can be replayed until March 4, 2021 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 21991616)
