Quisitive Reports Second Quarter 2024 Financial Results
Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS, OTCQX: QUISF), a leading provider of Microsoft Cloud and AI solutions, has announced its financial results for the second quarter ending June 30, 2024.
Management Commentary
Quisitive's CEO, Mike Reinhart, commented, “The first half of 2024 has progressed as we expected, showing steady revenue and earnings alongside a growing demand from customers. Our AI roadmap services have attracted significant interest, leading to a strong backlog of engagements. This is encouraging, as the initial readiness phase is vital for preparing for the full-scale AI deployment planned for 2025, which is essential for maximizing our returns on AI investments. Notably, 90% of our revenue in the first half came from long-term customers, reflecting strong reengagement and ongoing trust in our services. With improving customer purchasing trends, we are optimistic about the rest of this year and into 2025, particularly as we align with Microsoft’s AI go-to-market strategy to foster innovation in this evolving AI landscape.”
Second Quarter 2024 Financial Results
For the second quarter, the Company reported revenue from continuing operations of $29.6 million, down from $30.2 million during the same period in 2023. This decline was primarily due to lower market demand in professional services and a corresponding reduction in revenue-generating staff. However, the decrease in professional services revenue was somewhat balanced by an increase in revenue from managed services and software licensing. Additionally, recurring revenue reached a record high of 41.9%, driven mainly by growth in managed services.
The gross profit from continuing operations as a percentage of revenue improved to 42%, compared to 39% in the second quarter of 2023. This increase was largely a result of cost streamlining efforts linked to headcount reductions. The gross profit from continuing operations amounted to $12.5 million, up from $11.7 million in the second quarter of 2023, while adjusted EBITDA from continuing operations rose to $3.9 million, compared to $1.9 million last year.
Operational Highlights
During the second quarter, Quisitive achieved several operational milestones, including:
- Receiving the 2024 Microsoft Global Analytics Partner of the Year Award.
- Being recognized as Board International’s Solution Partner of the Year for the second consecutive year.
- Appointing Dan Kunz as Executive Vice President of Microsoft Cloud and AI Global Delivery Organization.
- Completing the sale of BankCard USA and exiting the payments division, allowing for a transformation into a unified entity focused on Microsoft cloud services and AI.
Fiscal Year 2024 Guidance
Quisitive reaffirms its previously disclosed guidance for fiscal year 2024: Revenue from Continuing Operations is expected to be between $120 million and $130 million, while Pro Forma Adjusted EBITDA from Continuing Operations is anticipated to fall between $15 million and $17 million.
Conference Call
Quisitive management will conduct a conference call to discuss these results, featuring insights from CEO Mike Reinhart and CFO Scott Meriwether. The call will also include a question-and-answer session, offering further details on the Company’s performance and future prospects.
Toll Free dial-in: 1-877-704-4453
International dial-in: 1-201-389-0920.
About Quisitive
Quisitive is a leading global Microsoft partner that harnesses the power of the Microsoft cloud platform and artificial intelligence, along with custom and proprietary technologies, to deliver transformative outcomes for its clients. The Company is dedicated to assisting enterprises across various industries in leveraging the Microsoft platform to adopt, innovate, and succeed in the AI era.
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, which is a slight decrease from $30.2 million in Q2 2023.
What drove the revenue decline?
The revenue decline was mainly due to a decrease in market demand within professional services and a reduction in the number of revenue-generating employees.
What milestones did Quisitive achieve in Q2 2024?
In Q2 2024, Quisitive was awarded the 2024 Microsoft Global Analytics Partner of the Year Award and recognized as Board International’s Solution Partner of the Year for the second year in a row.
What is Quisitive's adjusted EBITDA for Q2 2024?
Quisitive reported adjusted EBITDA of $3.9 million for the second quarter of 2024, an increase from $1.9 million during the same period last year.
How can investors get more information about Quisitive?
Investors can visit Quisitive's official website or reach out to the Investor Relations team for more detailed information and updates.
