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 third quarter ending September 30, 2024. Results are reported in US dollars and prepared in accordance with International Financial Reporting Standards (“IFRS”).

“Our third-quarter results reflect strong financial performance, driven by revenue growth and improved gross margins. This success is a direct result of our effective court migrations in Australia and significant productivity gains. The enhancements made to our AI-driven Netscribe platform, including the introduction of AI-based formatting tools for court reporters, have streamlined operations and boosted efficiency, leading to substantial cost savings and margin expansion. With key migrations now complete and a strong focus on cost optimization, we have improved operational efficiency, positioning the company for continued gross margin growth and enhanced Adjusted EBITDA in the quarters ahead,” said Sebastien Paré, CEO of VIQ Solutions.

Third Quarter 2024 Operational Highlights

• Global Tech-AI Migrations: We have successfully transitioned the majority of our revenue-generating operations to the NetScribe AI Assist platform on a global scale, driving increased gross margins and improved operational efficiency.
• Renewals and New Awards: Key renewals and new contract awards with major clients have strengthened our ARR revenue base for the coming years.
• Productivity Gains in Australia: Operational improvements in the Australian court sector have enabled a shift from fixed staffing to a variable-cost model that adapts to case volume and court scheduling, enhancing flexibility and cost efficiency.
• Increased Client Adoption and Utilization: Client engagement with FirstDraft has grown across all revenue segments, leading to a twofold increase in FirstDraft SaaS revenue year over year for the nine months ending September 30, 2024.
• Enhanced AI Platform Performance: Rising volumes processed on our AI Platform have further optimized our proprietary Domain-Specific Language Models (DSLMs) and post-processing, reducing word error rates and improving transcription efficiency, which cuts the time required to transcribe each minute of audio.
• Insurance Volume Growth: The Insurance sector continues to experience steady growth, with a notable acceleration in recent months. One major client has boosted its volume by 800% since expanding its contract in April 2024, while another key client’s recent contract expansion has resulted in a 250% increase in volume since July 2024. These significant increases highlight the growing demand for our solutions within the Insurance industry.

“Our third-quarter results demonstrate strong revenue growth and improved gross margins, driven by successful court migrations in Australia and a 30% productivity gain among our transcribers. The enhancements to our AI-driven Netscribe platform have revolutionized document creation by automating complex, state-specific templates, bringing greater consistency and efficiency to court reporting. As demand for court reporting services continues to rise, our technology is proving essential in supporting clients facing resource constraints. With key migrations now completed, we have accelerated cost-reduction initiatives, further enhancing operational efficiency. We are confident that these advancements will continue to drive gross margin expansion and strengthen Adjusted EBITDA in the coming quarters.” said Susan Sumner, COO and President of VIQ Solutions.

Third Quarter 2024 Financial Highlights

• Revenue of $11.1 million, an increase of $1 million or 10%, from the same period in the prior year.
• Gross profit of $5.1 million, an increase of $0.8 million or 19% from the same period in the prior year.
• Net loss of $1.1 million, a decrease of $3.3 million or 75%, from the same period in the prior year.
• Adjusted EBITDA1 of $0.8 million, an improvement of $2.1 million, or 158%, from the same period in the prior year.

“We are thrilled to report a significant improvement of approximately $2.1M 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” said Alexie Edwards, VIQ’s Chief Financial Officer.

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 nine months ended September 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 Wednesday November 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.

VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Expressed in US dollars, unaudited)
	Three months ended September 30,						Nine months ended September 30,
		2024			2023			2024			2023
Revenue	$	11,116,345		$	10,102,827		$	32,613,632		$	30,674,291
Cost of sales		5,967,429			5,770,743			17,809,341			17,279,369
Gross profit		5,148,916			4,332,084			14,804,291			13,394,922
Expenses
Selling and administrative expenses		4,191,589			5,495,347			12,831,255			16,262,292
Research and development expenses		171,628			186,769			492,154			520,734
Stock-based compensation		254,413			54,974			394,038			893,101
Gain on revaluation of RSUs		(4,457	)		(50,103	)		(51,768	)		(170,091	)
Loss (gain) on revaluation of the derivative warrant liability		(58,517	)		(543,114	)		(108,203	)		(408,600	)
Foreign exchange (gain) loss		(245,480	)		43,287			(733,366	)	If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news PLVision’s SONiC Lite NOS: Driving Open Networking Innovation for DC, Edge, and Campus Environments Bitcoin Frontier Fund Welcomes Dr. Chiente Hsu as General Partner Amid Strong Bitcoin DeFi Market Growth Si2 Compact Model Coalition Issues Call for Papers for Inaugural ICMC Conference Bolstering GenAI Offering, ThetaRay Deploys Comprehensive 'GenAI Financial Crime Detection Suite' Through Collaboration with Microsoft Dataduct Networks Integrates Cutting-Edge Solution for Municipal Nova Scotia Broadband Fiber Network with IP Infusion and FONEX Agilent Companion Diagnostic Assay PD-L1 IHC 28-8 pharmDx Receives European IVDR Certification ACOs Using Lightbeam Solutions Report Record MSSP Savings in PY23, Driving Cumulative Savings Beyond $3 Billion Milestone Exec-Comm and Yoodli AI Join Forces to Revolutionize Communication Training Last News RSA at Cybertech Europe 2024 Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem grow Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practice Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most read SnapLogic Named a Visionary in the 2024 Gartner® Magic Quadrant™ for Data… SnapLogic, the leader in generative integration, today announced that it has been named by Gartner as a Visionary in the 2024 “Magic Quadrant for Data… JetBlue Names Justin Thompson Vice President, IT Data and Analytics JetBlue (Nasdaq: JBLU) today announced the promotion of Justin Thompson to vice president, IT data and analytics. In this role, Thompson will oversee… Gigamon Recognized by Frost & Sullivan with a 2024 Best Practices Market… #CloudSecurity--Gigamon, a leader in deep observability, announced Frost & Sullivan recently analyzed the network packet brokers (NPB) market and… InfoVision Wins Top Spot at the Prestigious North American Software Testing… #BestOverallTestingProject--InfoVision, a global leader in IT services and enterprise digital transformation, has been named the winner in the ‘Best Overall… 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