Announces New Multi-Year Contracts Valued at Up
to $3.2 Million
VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX: VQS and OTCQX:
VQSLF), a global provider of secure, AI-driven, digital voice and
video capture technology and automated transcription services,
today announced its common shares were approved for listing on the
Nasdaq Capital Market (“Nasdaq”). The Company additionally
announced preliminary results for the second quarter of fiscal
year(FY) 2021, provided an outlook for the third quarter of FY2021
and an update on new multi-year contracts. All numbers are
expressed in U.S. dollars unless otherwise stated.
Approval of Nasdaq Listing – To Trade Under the Stock Symbol
VQS
VIQ received approval to list its common shares on the Nasdaq
under the symbol “VQS.” VIQ will provide a subsequent announcement
of the date trading of its common shares will commence on the
Nasdaq. VIQ’s common shares will continue to trade on the OTCQX
until trading begins on Nasdaq. VIQ will also retain its listing on
the Toronto Stock Exchange (the “TSX”) under the symbol “VQS.”
“The Nasdaq listing represents a significant milestone for VIQ
and is an important next step in our development,” said Sebastien
Paré, Chief Executive Officer, VIQ Solutions. “The listing is a
testament to our team's diligent work executing our growth
strategy, providing products that create tangible value and
fostering meaningful relationships with our growing client base. We
believe this listing will result in a number of long-term benefits
for our shareholders, including elevating VIQ’s public profile,
providing greater liquidity, expanding our shareholder base, and
gaining additional coverage by technology analysts.”
Preliminary Second Quarter Results for FY2021 and Outlook for
Third Quarter Results for FY2021
The Company plans to provide its second quarter earnings in
mid-August. Based on its preliminary results, VIQ anticipates
revenue in the second quarter to be in the range of $8.0 to $8.1
million. Gross margins are expected to be approximately 45.5%. VIQ
anticipates revenue in the third quarter to be in the range of $8.2
to $8.5 million. Gross margins are expected to be in the range of
46.0% to 47.0%. Gross margin estimates do not include any potential
positive impact related to wage subsidies.
The Company continues to execute on its planned commitment to
scale its technology editing infrastructure and sales globally to
meet new demands and to address new opportunities for its products
and services.
VIQ plans to complete its corporate initiatives related to this
acceleration of its innovation, expansion and public market related
initiatives in the second quarter and third quarter of FY2021. The
extraordinary, one-time, expenses associated with these corporate
milestones will be included in the Company’s financial results for
second quarter and third quarter of FY2021.
“While there was continuing volatility with Covid-related
shutdowns in some of our global markets, our revenue remains steady
and our client list continues to grow,” said Susan Sumner,
President and Chief Operating Officer. “We are building the
foundation to scale organic growth and complete accretive M&A,
both domestically and across the globe. We remain committed to
implementing our comprehensive strategy to consolidate the
fragmented transcription industry and seek to complete one or two
transactions before the end of 2021.”
New Multi-Year Contracts
The Company also announced it has secured new, multi-year
contracts in the United States, EMEA, and Australia valued at up to
$3.2 million in revenue over a 12-month period with expected
average gross margins in the range of 50% to 55% based on
historically similar contracts.
The Company commenced providing products and services to its
customers under these contracts during first quarter and second
quarter of 2021, with the majority of services expected to commence
in third quarter of 2021, subject to region-specific pandemic
related shutdowns particularly in EMEA and Australia. Thirty
percent of the value of these contracts represent organic growth
with current customers with the remaining 70% represent net new
customers.
Increased Demand for New Solutions
In early 2021, the Company introduced FirstDraft, powered by
aiAssist™, to automate the speech-to-text process, increasing audio
recording documentation and improving content accessibility for
clients worldwide. The solution was well received, and demand is
higher than expected with approximately $1.0 million of active
opportunities awaiting commercial availability. The interest is
particularly strong in the U.S, particularly in the Law Enforcement
and Media, and in regions of EMEA, opening an important growth
opportunity for VIQ and its partners.
“During an initial test of the FirstDraft functionality, we were
amazed at the results,” said Peter Benson, Chief Executive Officer,
Digital Voice Processing, a VIQ Synergy Strategic Partner. “The
team captured a six-hour file of a complex, multi-speaker
parliamentary case using VIQ’s CapturePro™ and submitted the file
through its FirstDraft process. The automated draft transcript was
returned in 22 minutes and with an estimated 95.7% accuracy. We
believe the ability to provide a fast and affordable solution for
recordings that do not require an edited or certified transcript
will enable our clients uncover the value inherent within their
documentation.”
“We are excited about the opportunity CapturePro, NetScribe™,
and FirstDraft provides to the region,” Mr. Benson added. “In most
African countries, English, French, or Portuguese are the legal
language of record, however, the average transcriptionist’s first
language is none of these. The ability to use AI to decrease
turnaround time while providing elevated levels of accuracy is a
game-changer.”
To expand the support of its solution portfolio globally, VIQ
will implement a localized version of the FirstDraft technology on
the African continent and make a similar investment in Canada
before the end of 2021.
“As global markets expand, the need for real-time, highly
accurate documentation is accelerating,” said Ms. Sumner. “Our AI
powered solutions continue to drive efficiency and improve
productivity. Our editors have seen throughput increase of up to 40
percent, with the highest level of success in the multi-speaker
court sector.”
“We remain committed on our path to disrupt and transform the
industries we serve and we are excited by our growth opportunities
and outlook for 2021 and beyond,” said Ms. Sumner.
For more information about VIQ, please visit viqsolutions.com.
About VIQ Solutions Inc.
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,
media, 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
Estimates provided in this news release are preliminary and are
inherently uncertain due to a number of factors, and remain subject
to Company management and Audit Committee reviews and the
completion of regular financial closing and review procedures and
audit procedures for the second and third quarters of 2021.
Additional adjustments to the preliminary estimates presented above
may be identified, and final results for the relevant fiscal
periods may differ materially from these preliminary estimates and
will not be finalized until after the Company completes its normal
year-end accounting procedures for each quarter, including
execution of internal controls over financial reporting. These
preliminary estimates are intended to provide information about
management’s current expectations regarding certain aspects of the
Company’s financial performance. Reliance on the information
presented herein may not be appropriate for other purposes.
Certain statements included in this news release constitute
forward-looking statements or forward-looking information 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 or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking statements or information in this news release
include, but are not limited to, the anticipated timing of the
listing of the Company’s common shares and ultimate trading of such
shares on the Nasdaq; the perceived benefits to the Company related
to its listing on the Nasdaq; the timing of the release and
preliminary estimates of the Company’s revenues and gross margins
for second quarter and third quarter of 2021; the Company’s
expectations related to completing additional possible acquisitions
in 2021; the impact of new contracts on the Company’s revenue and
gross margins for the next 12-month period; and the prospects,
outlook and impact of the Company’s existing products and new
products in certain markets and the timing of the roll-out of such
products.
In addition, this news release contains a financial outlook
including with respect to VIQ’s anticipated revenue and gross
margin for the second quarter and third quarter of 2021 as well as
other financial outlook disclosures. The financial outlook is
included to provide shareholders with a timely update of the
Company’s near-term financial outlook in relation to continuing
uncertainties around Covid-19. Accordingly, readers should be
cautioned that this information may not be appropriate for other
purposes.
Forward-looking statements including, without limitation,
financial outlooks and preliminary estimates, are based on several
factors and assumptions which have been used to develop such
statements and information, but which may prove to be incorrect.
Although VIQ believes that the expectations reflected in such
forward-looking statements or information 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 news release, assumptions have been made
regarding, among other things, the continued good standing of VIQ’s
customer contracts, the market acceptance of VIQ’s products and
services, the effect of the Covid-19 pandemic and related measures
on VIQ’s clients and revenues and VIQ’s ability to migrate its
clients to NetScribe™ and aiAssist. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
that have been used.
Forward-looking statements, including, without limitation,
financial outlooks are based on current expectations, estimates and
projections that involve several risks and uncertainties which
could cause actual results to differ materially from those
anticipated by VIQ and described in the forward-looking statements
or information, including the ultimate listing and trading of the
Company’s common shares on the Nasdaq may be delayed, VIQ’s
customers may be delayed in satisfying their obligations under
commercial agreements with VIQ or they may not satisfy their
obligations under these agreements at all, the market acceptance of
VIQ’s products and services, that the Company’s scaling of its
technology editing infrastructure may not occurr when or as
anticipated or that the Covid-19 pandemic could cause disruption to
the Company’s business in one or more geographic areas and those
risks described in VIQ’s Annual Information Form for the year ended
December 31, 2020, filed with the Canadian securities regulatory
authorities under VIQ’s SEDAR profile at www.sedar.com and with the
United States Securities and Exchange Commission on Edgar at
www.sec.gov. These risks and uncertainties may cause actual results
to differ materially from the forward-looking statements or
information. Readers are cautioned that the foregoing list is not
exhaustive of all possible risks and uncertainties.
The forward-looking statements contained in this news release
are made as of the date of this news release, and the Company
expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210730005303/en/
Media: Laura Haggard Chief Marketing Officer VIQ
Solutions Phone: (800) 263-9947 Email: marketing@viqsolutions.com
Investor Relations: Laura Kiernan High Touch Investor
Relations Phone: 1-914-598-7733 Email: viq@htir.net
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