VIQ Solutions (TSXV:VQS) has announced its financial results for the year-ended December 31, 2016.
As quoted in the press release:
Consolidated annual revenue was approximately $11.4M, an increase of $1.5M or 15% more than the previous year as the Company continued to diversify into new high growth markets. Revenue was generated by new customer wins in the public safety, medical, legal, insurance and judicial markets, as well as integrated technology and transcription contracts in Australia.
“Continued market diversification and platform expansion with existing customers generated significantly increased revenue,” said Sebastien Paré, President and CEO of VIQ Solutions. “We are executing on our transformation plan and strategic technology innovations enabling our trend toward profitability in 2017 and beyond.”
Recurring revenue expanded by 35% over the same period in 2015 as the Company’s cloud platform continued to gain traction. During the year, the Company made strategic investments to advance the key initiative of transitioning revenue from the historical license plus maintenance model to a modernized subscription fee and cloud based model.
“The highest growth opportunity for VIQ continues to be in recurring subscription revenue in the rapidly expanding ultra secure SaaS and cloud markets,” continued Mr. Paré. “The size, nature and visibility of our sales pipeline for 2017-2018, as well as diversified customer wins in Q4, reinforce the belief that our growth path lies in our industry leading cybersecurity and recurring SaaS revenue.”
Increased global focus on secure cloud computing and advanced digital content protection produced substantial interest in VIQ from security conscious customers including federal government agencies and medical organizations in 2016. The Company currently has a number of large scale pilot projects underway with sophisticated government agencies requiring extensive scrutiny on cybersecurity to secure digitized evidence collection, associated workflow and collaboration.
While some revenue from these projects was recognized in Q4, the majority of revenue is anticipated in 2017 as projects progress into the rollout phase in partnership with cybersecurity, digital content and cloud partners. The Company is in the midst of a recently announced enterprise level implementation with an international agency after having passed the highest levels of security testing.