Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the fourth quarter and full year of fiscal 2024, ended April 30, 2024. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“Fiscal 2024 has been a landmark year for Tecsys in which we have demonstrated our ability to drive continued growth and expand market opportunity,” said Peter Brereton, president and CEO at Tecsys. “Our SaaS revenue surged by 39% in fiscal 2024 and we achieved record-breaking SaaS bookings in our fourth quarter as well as for the full year. We head into fiscal 2025 with confidence that we are delivering exceptional value to our customers and are well-positioned to capitalize on our market momentum.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “Our financial performance in fiscal 2024 underscores the strength of our business model. With a 43% increase in SaaS RPO in fiscal 2024 and positive evolution in our gross margin profiles, we continue to see the path for AEBITDA margin expansion to 8-9% in fiscal 2025 and 10-11% in fiscal 2026.”
Fourth Quarter Highlights:
- SaaS revenue increased by 27% to $14.2 million, up from $11.1 million in Q4 2023.
- SaaS subscription bookingsi (measured on an ARRi basis) increased by 108% to a record $8.0 million, compared to $3.9 million in the fourth quarter of fiscal 2023.
- SaaS Remaining Performance Obligation (RPOi) increased by 43% to $196.9 million at April 30, 2024, up from $137.7 million at the same time last year.
- Annual Recurring Revenue (ARRi) at April 30, 2024 was up 21% to $94.7 million compared to $78.3 million at April 30, 2023.
- Total revenue increased 7% to a record $44.0 million compared to $41.2 million in Q4 2023. Professional services revenue decreased by 2% to $14.4 million compared to $14.6 million in Q4 2023.
- Gross margin was 47% for the fourth quarter of fiscal 2024 compared to 45% for the same period in fiscal 2023.
- Total gross profit increased to $20.6 million, up 12% from $18.4 million in Q4 2023.
- Operating expenses increased to $21.3 million, higher by $4.3 million or 25% compared to $17.0 million in Q4 last year. Q4 2024 operating expenses included $2.1 million of restructuring costs.
- Loss from operations (including the impact of restructuring costs) was $0.6 million in Q4 2024, compared to a profit from operations of $1.4 million in Q4 2023.
- Net profit was $0.3 million or $0.02 per share on a fully diluted basis in Q4 2024, compared to $0.4 million or $0.03 per share for the same period in fiscal 2023.
- Adjusted EBITDAii was $2.8 million, up 14% compared to $2.4 million reported in Q4 last year.
- In the fourth quarter of fiscal 2024, Tecsys acquired 128,300 of its outstanding common shares for approximately $5.0 million as part of its ongoing normal course issuer bid.
Fiscal 2024 Highlights:
- SaaS revenue increased by 39% to $51.9 million, up from $37.5 million in fiscal 2023.
- SaaS subscription bookingsi (measured on an ARRi basis) increased to $18.6 million, up 13% from $16.4 million in fiscal 2023.
- Total revenue increased 12% to $171.2 million compared to $152.4 million in fiscal 2023.
- Professional services revenue was $55.2 million, down slightly compared to $55.4 million in fiscal 2023.
- Gross margin was 46% for fiscal 2024 compared to 44% for fiscal 2023.
- Total gross profit increased to $78.4 million, up 17% from $66.8 million in the same period of fiscal 2023.
- Operating expenses increased to $76.5 million, higher by $13.2 million or 21% compared to $63.2 million in fiscal 2023.
- Profit from operations (including the impact of restructuring) was $1.9 million, down from $3.6 million in fiscal 2023.
- Net profit was $1.8 million, or $0.13 per diluted share in fiscal 2024, compared to a net profit of $2.1 million, or $0.14 per diluted share, for fiscal 2023.
- Adjusted EBITDAii was $9.6 million, up slightly compared to $9.5 million in fiscal 2023.
On June 27, 2024, the Company declared a quarterly dividend of $0.08 per share to be paid on August 2, 2024 to shareholders of record on July 12, 2024.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
Q4 and FY2024 Financial Results Conference Call
Date: June 28, 2024
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until July 5, 2024, by calling:
888-660-6345 or 646-517-4150 (access code: 46999#)
i See Key Performance Indicators in Management’s Discussion and Analysis of the 2024 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the 2024 Financial Statements.
