Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the fourth quarter and full year of fiscal year 2022, ended April 30, 2022. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter Highlights:
- SaaS revenue increased by 40% to $7.7 million, up from $5.5 million in Q4 2021.
- Annual Recurring Revenue (ARRi) at April 30, 2022 was up 20% to $62.7 million compared to $52.5 million at April 30, 2021.
- SaaS subscription bookingsi(measured on an ARRi basis) were $4.5 million, up 29% compared to $3.5 million in the fourth quarter of 2021.
- Professional services revenue was up 6% to $12.9 million compared to $12.2 million in Q4 2021.
- Total revenue was $34.3 million, 6% higher than $32.4 million reported for Q4 2021.
- Gross margin was 44% compared to 49% in the prior year quarter.
- Total gross profit decreased to $15.1 million, down 4% from $15.7 million in Q4 2021.
- Operating expenses increased to $13.8 million, higher by $0.7 million or 6% compared to $13.1 million in Q4 fiscal 2021, with continued investment in sales and marketing.
- Profit from operations was $1.3 million, down 50% from $2.6 million in Q4 2021.
- Net profit was $2.6 million or $0.17 per share on a fully diluted basis compared to a net profit of $2.0 million or $0.14 per share for the same period in fiscal 2021. Net Profit was positively impacted in the three and twelve months ended April 30, 2022 as a result of the recognition of approximately $1.9 million net deferred tax assets and the recognition of approximately $0.6 million gain on remeasurement of lease liability.
- Adjusted EBITDAiiwas $1.7 million, down 56% compared to $3.9 million reported in Q4 2021.
- A weaker USD to CAD exchange rate negatively impacted revenue and Profit from operations and Adjusted AEBITDA by approximately $0.7 million compared to the same quarter last year.
“Our solid fourth quarter results cap off a compelling year of top-line growth. SaaS bookings drove our double digit Annual Recurring Revenue growth for the year and resulted in SaaS revenue growth of 47% on a constant currency basis. We are proud of our performance as the pandemic headwinds begin to subside and the potential emergence of tailwinds position us for continued growth well into the future.” said Peter Brereton, president and Chief Executive Officer of Tecsys Inc. “Healthcare continues to be a significant contributor as we added another two networks in the quarter for a total of eight in the fiscal year. The rising adoption of our agile end-to-end SaaS supply chain solutions by leading companies as the vendor of choice cements the important role we play in their digital transformation journeys and validates our strategy as well poised for continued success.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “Looking ahead, we believe our evolution as a SaaS company and our drive to expand our partner ecosystem will continue to have an impact on our revenue mix. From an investment standpoint, we believe our existing professional services capacity is adequate for the near term. We believe that our prior investments in sales and marketing put us in a solid position to grow as productivity continues to improve. Our investment in research and development during the fourth quarter will impact Q1 of fiscal 2023, but we expect investment to moderate beyond that point.”
Fiscal 2022 Highlights:
- SaaS revenue increased 41% to $26.9 million, up from $19.2 million in fiscal 2021.
- SaaS subscription bookingsiincreased 25% to $11.9 million compared to $9.5 million in fiscal 2021.
- Professional services revenue was up 9% to $52.0 million compared to $47.5 million in fiscal 2021.
- Total revenue was $137.2 million, up 11% from $123.1 million reported in fiscal 2021.
- Gross margin was 44% compared to 49% for fiscal 2021.
- Total gross profit decreased to $60.3 million, down $0.3 million or 1% compared to $60.6 million in the same period last year.
- Operating expenses increased to $54.9 million, higher by $5.0 million or 10% compared to $49.9 million in the same period of fiscal 2021.
- Profit from operations was $5.4 million, down from $10.7 million in the same period of fiscal 2021.
- Net profit was $4.5 million, or $0.30 per diluted share, compared to a profit $7.2 million or $0.49 per share, for fiscal 2021.
- Adjusted EBITDAiiwas $10.1 million, down 38% compared to $16.2 million for fiscal 2021.
- A weaker USD to CAD exchange rate negatively impacted revenue by $6.6 million and Profit from operations and Adjusted AEBITDA by $5.2 million compared to the same period last year.
On June 29, 2022, the Company declared a quarterly dividend of $0.07 per share payable on August 5, 2022 to shareholders of record at the close of business on July 15, 2022.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
For financial tables click here
Fourth Quarter and Full Year Fiscal 2022 Results Conference Call
Date: June 30, 2022
Time: 8:30am EDT
Phone number: (800) 758-5606 or (416) 641-6662
The call can be replayed until July 7, 2022 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 22019359)
