Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the third quarter of fiscal year 2023, ended January 31, 2023. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Second Quarter Highlights:
- SaaS revenue increased by 36% to $9.5 million, up from $7.0 million in Q3 2022.
- SaaS subscription bookingsi (measured on an ARRi basis) increased by 152% to $5.8 million, compared to $2.3 million in the third quarter of fiscal 2022.
- SaaS Remaining Performance Obligation (RPOi) increased by 63% to $128.3 million at January 31, 2023, up from $78.5 million at the same time last year.
- Annual Recurring Revenue (ARRi) at January 31, 2023 was up 27% to $75.4 million compared to $59.5 million at January 31, 2022.
- Professional services revenue was up 5% to $13.6 million compared to $12.9 million in Q3 last year.
- Total revenue excluding hardware revenue was $32.5 million, 12% higher than $29.0 million reported for Q3 last year, while total revenue reached a record $38.9 million.
- Gross margin was 44% compared to 43% in the same period in fiscal 2022.
- Total gross profit increased to $17.0 million, up 12% from $15.2 million in Q3 last year.
- Operating expenses increased to $16.0 million, higher by $2.1 million or 15% compared to $13.9 million in Q3 last year.
- Profit from operations was $1.0 million, down from $1.4 million in Q3 last year.
- Net profit was $0.9 million or $0.06 per share on both a basic and fully diluted basis in Q3 2023 compared to $0.9 million or $0.06 per share in Q3 2022.
- Adjusted EBITDAii was $2.8 million, up 1% compared to $2.7 million reported in Q3 last year.
“We are pleased to continue our strong momentum through this quarter, supported by both new logo wins and solid base account activity, including major expansions and new SaaS migrations, which continues to contribute favorably to our bookings,” said Peter Brereton, president and CEO of Tecsys Inc. “We continue to see healthy pipeline activity that shows a growing demand for our value proposition to our base customers and to the supply chain market as a whole. In light of these favorable market conditions, we continue to invest to drive organic growth.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “Our Q3 performance continues at a solid pace as we drive market expansion and investor value. With a record revenue quarter led by 36% SaaS revenue growth and SaaS bookings up 152%, we are pleased with our topline growth, and we continue to create greater revenue visibility as we grow our RPO, which is up 63% year over year.”
Year-to-date performance for first nine months of fiscal 2023:
- SaaS revenue increased by 37% to $26.3 million, up from $19.2 million the same period of fiscal 2022.
- SaaS subscription bookingsi (measured on an ARRi basis) increased to $12.5 million, 68% higher from $7.5 million in the same period of fiscal 2022.
- Professional services revenue for the nine-month period was up 4% to $40.7 million compared to $39.1 million in the same period of fiscal 2022.
- Total revenue excluding hardware revenue was $94.4 million, 11% higher than $85.3 million reported for the same period of fiscal 2022.
- Gross margin was 44% for both periods in fiscal 2023 and fiscal 2022.
- Total gross profit increased to $48.4 million, up 7% from $45.2 million in the same period of fiscal 2022.
- Operating expenses increased to $46.3 million, higher by $5.2 million or 13% compared to $41.1 million in the same period of fiscal 2022.
- Profit from operations was $2.2 million, down from $4.1 million in the same period of fiscal 2022.
- Net profit was $1.6 million or $0.06 per share on both a basic and fully diluted basis in the first nine months of fiscal 2023 compared to a net profit of $1.9 million or $0.13 per share for the same period in fiscal 2022.
- Adjusted EBITDAii was $7.0 million, down 16% compared to $8.4 million reported in the same period in fiscal 2022.
On March 1, 2023, the Company declared a quarterly dividend of $0.075 per share to be paid on April 13, 2023 to shareholders of record on March 23, 2023.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
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Third Quarter Fiscal 2023 Results Conference Call
Date: March 2, 2023
Time: 8:30am EDT
Phone number: (877) 954-0686 or (416) 981-9014
The call can be replayed until March 9, 2023 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 22026120)
