Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the fourth quarter and full year of fiscal year 2023, ended April 30, 2023. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“Our solid performance in the fourth quarter closes out a remarkable year underpinned by strong growth. It's fitting that the year we celebrate our 40th anniversary in business, we are reporting just under 40% year over year growth in SaaS revenue and SaaS bookings, and over 40% year over year growth in RPO,” says Peter Brereton, president and CEO at Tecsys Inc. “With a supply chain industry in flux and companies actively sourcing and selecting their next supply chain technology partner, we enter fiscal 2024 with confidence that our business is well positioned to seize that opportunity and expand our presence in a rapidly growing market.”
Mark Bentler, chief financial officer of Tecsys Inc., adds, “This is our first fiscal year where SaaS revenue represents over half of our recurring revenue. With a record revenue quarter led by 44% SaaS revenue growth, we are proud of the transformative effect our SaaS offerings are having on our business and the value we believe they will create for our stakeholders. By its recurring nature, growing SaaS revenue provides greater visibility into future revenue. With that in mind, we have decided to start providing financial guidance on several key metrics, which you will see below.”
Fourth Quarter Highlights:
- SaaS revenue increased by 44% to $11.1 million, up from $7.7 million in Q4 2022.
- SaaS subscription bookingsi (measured on an ARRi basis) decreased by 13% to $3.9 million, compared to $4.5 million in the fourth quarter of fiscal 2022.
- SaaS Remaining Performance Obligation (RPOi) increased by 47% to $137.7 million at April 30, 2023, up from $94.0 million at the same time last year.
- Annual Recurring Revenue (ARRi) at April 30, 2023 was up 25% to $78.3 million compared to $62.7 million at April 30, 2022.
- Professional services revenue was up 13% to $14.6 million compared to $12.9 million in Q4 2022.
- Total revenue excluding hardware revenue was $34.3 million, 17% higher than $29.2 million reported for Q4 last year, while total revenue rose 20% to reach a record $41.2 million.
- Gross margin was 45% for the fourth quarter of fiscal 2023 compared to 44% for the same period in fiscal 2022.
- Total gross profit increased to $18.4 million, up 21% from $15.1 million in Q4 2022.
- Operating expenses increased to $17.0 million, higher by $3.2 million or 23% compared to $13.8 million in Q4 last year.
- Profit from operations was $1.4 million, up from $1.3 million in Q4 2022.
- Net profit was $0.4 million or $0.03 per share on a fully diluted basis in Q4 2023, compared to $2.6 million or $0.17 per share for the same period in fiscal 2022.
- Adjusted EBITDAii was $2.4 million, up 42% compared to $1.7 million reported in Q4 last year.
Fiscal 2023 Highlights:
- SaaS revenue increased by 39% to $37.5 million, up from $26.9 million the same period of fiscal 2022.
- SaaS subscription bookings
- Professional services revenue was up 6% to $55.4 million compared to $52.0 million in the same period of fiscal 2022.
- Total revenue excluding hardware revenue was $128.7 million, 12% higher than $114.5 million reported for the same period of fiscal 2022, while total revenue reached a record $152.4 million.
- Gross margin was 44% for both fiscal 2023 and fiscal 2022.
- Total gross profit increased to $66.8 million, up 11% from $60.3 million in the same period of fiscal 2022.
- Operating expenses increased to $63.2 million, higher by $8.3 million or 15% compared to $54.9 million in fiscal 2022.
- Profit from operations was $3.6 million, down from $5.4 million in the same period of fiscal 2022.
- Net profit was $2.1 million, or $0.14 per diluted share in fiscal 2023, compared to a net profit of $4.5 million, or $0.30 per diluted share, for fiscal 2022.
Fourth Quarter and Full Year Fiscal 2023 Results Conference Call
Date: June 30, 2023
Time: 8:30am EDT
Phone number: (877) 224-6304 or (416) 620-9188
The call can be replayed until July 7, 2023 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 22027339)
