MISSISSAUGA, Ontario: VIQ Solutions Inc. (“VIQ”, “VIQ Solutions” or the “Company”) (TSX: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, is pleased to announce its unaudited financial results for the second quarter ending June 30, 2024. Results are reported in US dollars and prepared in accordance with International Financial Reporting Standards (“IFRS”).

“The Company delivered a robust Q2 performance, with revenue surging by 10% and gross margin nearing 46%. Our performance underscores the strong momentum of our key margin drivers globally. The substantial increase in Adjusted EBITDA results from bolstering revenue and gross margins associated with the Company's transformation into an AI-workflow operating platform, and successful streamlining and consolidation of our operations. These drivers have set the stage for continued financial improvement as the second half of the year progresses,”. Sebastien Paré, CEO of VIQ Solutions stated.’

Second Quarter 2024 Operational Highlights

• Global Tech-AI migrations: We have successfully completed migrations to the NetScribe AI Assist platform, which has driven improved gross margins.
• Volume Expansion: Volume increases in the Insurance vertical continue to gain momentum. This trend is expected to persist.
• Client Adoption and Utilization: The adoption and utilization of FirstDraft across all segments of revenue have increased, with approximately 120 net new logos added in the quarter.
• Enhanced AI Platform: Higher volumes processed in the AI Platform have strengthened proprietary Domain Specific Language Models (DSLMs) and post-processing, leading to reduced word error rates and lower costs to produce a minute of audio.

"What started in Q1 2024 and accelerated in Q2 2024 is an increased demand for the technologies we have invested in over the last several years. Our core markets have embraced the technologies we deliver, as evidenced by this quarter’s economics. We provided an AI driven platform allowing customers to securely receive content faster and our editors to produce that content more efficiently. This platform has optimized processes, reduced costs and improved margins. We are just beginning. The next generation of this technology will be released in the second half of the year and will redefine the creation of complex documentation. Our upcoming innovations will further solidify our leadership in both services and technology,”. Susan Sumner, COO and President of VIQ stated.

Second Quarter 2024 Financial Highlights

• Revenue of $11.6 million, an increase of $1.1 million or 10%, from the same period in the prior year.
• Gross profit of $5.3 million, an increase of $0.6 million or 14% from the same period in the prior year.
• Net loss of $0.6 million, a decrease of $3 million from the same period in the prior year.
• Adjusted EBITDA1 of $0.8 million, an improvement of $1.7 million, or 181%, from the same period in the prior year.

"We are thrilled to report a significant improvement of approximately $1.7M to Adjusted EBITDA from the same period last year. This growth reflects the success of our strategic productivity margin initiatives, tight cost management and revenue expansion in an industry experiencing rapid modernization due to the integration of AI technology. We remain focused on executing our strategic priorities and financial targets. Enhancing VIQ’s Adjusted EBITDA performance remains a top priority,”. Alexie Edwards, VIQ’s Chief Financial Officer stated.

1 Represents a non-IFRS measure. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Management believes non-IFRS measures, including Adjusted EBITDA, provide supplementary information to IFRS measures used in assessing the performance of the Company’s business. Please refer to the "Non-IFRS Measures" section below.

A copy of the Company’s unaudited financial statements and accompanying MD&A for the three and six months ended June 30, 2024 (collectively, the “Financial Information”) will be available under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Conference Call Details

VIQ will host a conference call and webcast to discuss Financial Information on Tuesday August 13, 2024, at 11:00 a.m. (Eastern time). The call will consist of updates by Sebastien Paré, VIQ’s Chief Executive Officer, Alexie Edwards, VIQ’s Chief Financial Officer, and Susan Sumner, VIQ’s President and Chief Operating Officer, followed by a question-and-answer period.

Investors may access a live webcast of the call on the Company’s website at www.viqsolutions.com/investors or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts.

A replay of the webcast will be available on the Company’s website through the same link approximately one hour after the conference call concludes.

About VIQ Solutions

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

Forward-looking Statements

Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under applicable securities legislation. Such forward- looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

Forward-looking statements (typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur). These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company’s improved 2024 performance, including to gross margin, the Company’s focus and its priorities, expected higher volumes, increases in SaaS sales and the evolution of sectors in 2024, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company’s financial results.

Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce optimization, cost reductions from the Company’s workflow solutions and that sales and prospects may increase revenue. In addition to other factors and assumptions that may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce optimization, cost reductions from the Company’s workflow solutions, and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s annual information form and in the Company’s other materials filed with the Canadian securities regulatory authorities.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

* The Company obtained a waiver on July 25, 2024 from Beedie for the non compliance of the Maximum Total Secured Debt Leverage financial covenant for the month of June 2024. As a result, the principal amount of Note Payable and paid in kind interest owing remains due to be repaid in January 2027

VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Expressed in US dollars, unaudited)
		Three months ended June 30,						Six months ended June 30,
			2024			2023			2024			2023
Revenue		$	11,575,614		$	10,518,893		$	21,497,287		$	20,571,464
Cost of sales			6,312,797			5,884,012			11,841,912			11,508,626
Gross profit			5,262,817			4,634,881			9,655,375			9,062,838
Expenses
Selling and administrative expenses			4,328,687			5,405,644			8,639,461			10,766,945
Research and development expenses			155,416			189,156			320,526			333,965
Stock-based compensation			111,283			504,835			139,816			838,127
Gain on revaluation of RSUs			(18,534	)		(63,042	)		(47,311	)		(119,988	)
Loss (gain) on revaluation of the derivative warrant liability			7,479			(24,238	)		(49,686	)		134,514
Foreign exchange (gain) loss			(590,719	)		409,270			(487,886	)		646,288
Depreciation			194,237			183,396		If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Data Protection Business Research Report 2023-2030: Development of DPaaS Offers Lucrative Opportunities - ResearchAndMarkets.com InflexionPoint Announces Appointment of Digital Transformation Executive to Board of Directors Data Center RFID Business Research Report 2024: Growing Focus on Automation and Efficiency Strengthens Business Case for Integration - Global Forecast to 2030 - ResearchAndMarkets.com TransLogic™ Presents Future-Readiness at Canadian Healthcare Conference Enterprises Turning to Cloud for Unified AI, Data Platforms PAR Technology Corporation to Participate at Goldman Sachs Communacopia + Technology Conference WP Engine Appoints Samuel Monti as its Chief Financial Officer Ryan Named One of the 2024 Best Workplaces in Consulting & Professional Services™ in the United Kingdom Last News 25 Italian Startups Will Be Present at Expand North Star 2024 Scheduled for October, the world's largest startup event will bring together more than 2,000 exhibitors in Dubai, UAE Partitalia: Italian IoT innovation in San Francisco The Italian IoT company is in the US for the second phase of CALL4INNOVIT Sparkle works on environmentally sustainable content distribution The Italian company partners with MainStreaming for high-performance, energy-efficient video streaming Libraesva: being specialized is ok again in cybersecurity Software vendors developing vertical solutions against specific attack vectors are 'cool' again. And when it comes to email security, all companies now… Most read New Zealand Buy Now Pay Later Business and Investment Opportunities Databook… The "New Zealand Buy Now Pay Later Business and Investment Opportunities Databook - Q2 2024 Update" report has been added to ResearchAndMarkets.com's… Kenya Buy Now Pay Later Business Report 2024: BNPL Payments to Grow by… The "Kenya Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis,… Median Technologies to host two webcasts on September 5, 2024 Regulatory News: Median Technologies (FR0011049824, ALMDT, PEA/SME eligible, “Median” or “The Company”) will host two live webcasts on September 5, 2024.… Mark Lawyer Joins RWS’s Executive Team as President of Regulated Industries… RWS, a unique, world-leading provider of technology-enabled language, content and intellectual property solutions, announces that Mark Lawyer has joined… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy