Quorum Announces Q1 FY2018 Results

Quorum Information Technologies Inc (TSXV:QIS), a leading provider of dealership and customer management software and value added services to the automotive industry released its 2018 first quarter results.

The company said that its gross revenue increased by eight percent to $3,522,251 in Q1 FY2018 as compared to 3,271,987.

As quoted in the press release:

 Quorum’s annual SaaS support revenue run rate is now $11,386,920 based on March 2018 support revenue of $948,910.

–  Support revenue now represents 78% of total revenue for Q1 FY2018 compared to 75% for Q1 FY2017.

Gross Margin – in Q1 FY2018, our gross margin was 52%, consistent with Q1 FY2017.  The gross margin for our SaaS-based support revenue was 70% in Q1 FY2018.

–  Sales Backlog – not all dealership rooftops sold in Q1 FY2018 and FY2017 were able to be installed during Q1 FY2018. Quorum had 13 sold dealership rooftops planned to be installed throughout the remainder of FY2018 and Q1 FY2019 compared to 17 at the end of Q1 FY2017 that were installed in FY2017 and Q1 FY2018.

Core Revenue – Core revenue is comprised of support, add-on and new installations revenue.  Transitions revenue pertains to conversion of dealerships to new server hardware and/or the latest version of Microsoft operating system and database software. Core revenue increased by 10% in Q1 FY2018 as compared to Q1 FY2017.

–  Quorum made a number of incremental, critical investments in Q1 FY2018 compared to Q1 FY2017 that are key to future growth; however, these investments negatively impacted our working capital by $500K and  EBITDA and net income by $375K.

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