Quisitive Technology Solutions Reports Q2 2024 Financial Results

Quisitive Reports Second Quarter 2024 Financial Results

Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS, OTCQX: QUISF), a premier Microsoft Cloud and AI solutions provider, today reported financial results for the second quarter ended June 30, 2024.

Management Commentary

“The first half of 2024 has unfolded as anticipated, with consistent revenue and earnings, alongside promising growth in customer demand,” stated Quisitive CEO Mike Reinhart. “Our AI roadmap services have been met with strong customer interest, resulting in a robust backlog of engagements. This is a positive sign, as the initial readiness phase is crucial for setting the stage for the full-scale AI deployment in 2025, which is key to maximizing our AI investment returns. With 90% of our first-half revenue coming from long-standing customers, we are seeing strong reengagement and continued trust in our services. As customer purchasing patterns have improved, we are optimistic about the remainder of this year and into 2025, especially as we align with Microsoft’s AI go-to-market strategy to drive innovation in this transformative AI landscape.”

Second Quarter 2024 Financial Results

The Company’s revenue from continuing operations was $29.6 million compared to $30.2 million for the same period in 2023. The decline was driven by reduced market demand within professional services revenue and the Company’s corresponding reduction in revenue-generating headcount. However, the decrease in professional services revenue was partially offset by increased revenue from managed services and software licensing. Additionally, recurring revenue increased to 41.9%, a record for Quisitive, driven primarily by growth in managed services revenue.

Gross profit from continuing operations as a percentage of revenue increased to 42% compared to 39% for the second quarter ended June 30, 2023, primarily due to streamlining its cost basis as part of headcount reductions. Gross profit from continuing operations stood at $12.5 million, compared to $11.7 million for the second quarter in 2023, while adjusted EBITDA from continuing operations was reported at $3.9 million, up from $1.9 million.

Operational Highlights

Quisitive achieved several operational highlights in the second quarter, including:

• Awarded the 2024 Microsoft Global Analytics Partner of the Year Award.
• Recognized as Board International’s Solution Partner of the Year for the second consecutive year.
• Appointed Dan Kunz as Executive Vice President of Microsoft Cloud and AI Global Delivery Organization.
• Completed the sale of BankCard USA and exited the payments division, transforming into a unified entity centered around Microsoft cloud services and AI.

Fiscal Year 2024 Guidance

Quisitive reaffirms its prior disclosed guidance for fiscal year 2024: Fiscal Year 2024 Revenue from Continuing Operations is projected between $120 million and $130 million. Pro Forma Adjusted EBITDA from Continuing Operations is expected to fall between $15 million and $17 million.

Conference Call

Quisitive management will hold a conference call to discuss these results led by Company CEO Mike Reinhart and CFO Scott Meriwether. The call will include a question-and-answer session, providing insights into the Company’s performance and future outlook.

Toll Free dial-in: 1-877-704-4453
International dial-in: 1-201-389-0920.

About Quisitive

Quisitive is a premier, global Microsoft partner leveraging the power of the Microsoft cloud platform and artificial intelligence, alongside custom and proprietary technologies, to drive transformative outcomes for its customers. The Company focuses on helping enterprises across industries leverage the Microsoft platform to adopt, innovate, and thrive in the era of AI.

Quisitive Investor Contact

Matt Glover and John Yi, Gateway Group, Email: QUIS@gateway-grp.com, Phone: 949-574-3860

Tami Anders, Chief of Staff, Email: tami.anders@quisitive.com, Phone: 972-573-0995

Frequently Asked Questions

What were Quisitive's revenue figures for Q2 2024?

Quisitive reported revenue of $29.6 million for the second quarter of 2024, a slight decline from $30.2 million in Q2 2023.

What drove the revenue decline?

The decline was primarily influenced by reduced market demand in professional services and a decrease in revenue-generating headcount.

What milestones did Quisitive achieve in Q2 2024?

Quisitive achieved milestones such as being awarded the 2024 Microsoft Global Analytics Partner of the Year Award and being recognized as Board International’s Solution Partner of the Year for the second consecutive year.

What is Quisitive's adjusted EBITDA for Q2 2024?

Quisitive reported adjusted EBITDA of $3.9 million for the second quarter of 2024, compared to $1.9 million in the same period last year.

How can investors get more information about Quisitive?

Investors can visit Quisitive's official website or contact the Investor Relations team for more detailed information and updates.

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