Tecsys Inc., an industry-leading supply chain management SaaS company, 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 EBITDAiiwas $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.”
