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Viq Solutions (TSE:VQS)
:VQS
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VIQ Solutions
(TSX:VQS)
42Neutral
VIQ Solutions (VQS) vs. S&P 500 (SPY)
Market Cap
C$9.68M
Dividend YieldN/A
Average Volume (3M)80.73K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth6.14%
EPS Growth61.43%
CountryCA
Employees334
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.20
Shares Outstanding52,334,020
10 Day Avg. Volume64,832
30 Day Avg. Volume80,726
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.21
Price to Cash Flow (P/CF)17.40
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
VIQ Solutions Business Overview & Revenue Model
Company DescriptionVIQ Solutions (VQS) is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. The company operates primarily within the legal, insurance, law enforcement, and transcription sectors, offering advanced solutions for capturing, managing, and analyzing digital content. VIQ Solutions' core products and services include a suite of software solutions that leverage AI and machine learning to streamline the capture, management, and transcription of audio and video recordings, enhancing productivity and accuracy for its clients.
How the Company Makes MoneyVIQ Solutions generates revenue through a combination of software licensing, subscription services, and professional transcription services. The company offers its digital capture and transcription solutions on a subscription basis, providing clients with access to its proprietary software and technology platforms. Additionally, VIQ Solutions monetizes its professional services by offering transcription and editing services, utilizing both automated processes and skilled human transcribers to meet the diverse needs of its clients. Key revenue streams include recurring subscription fees, one-time software licensing agreements, and fees for transcription and editing services. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its service offerings, contributing to its overall revenue growth.
VIQ Solutions Financial Statement Overview
Summary
VIQ Solutions faces significant financial challenges, characterized by declining revenues, high leverage, and negative cash flows. The persistent losses and reduced equity position highlight the need for strategic initiatives to improve revenue generation and operational efficiency.Income Statement
The company has experienced a substantial decline in revenue, with a negative revenue growth rate of -10.51% from 2022 to 2023. Gross profit margin has also decreased to 44.14%, reflecting weakened profitability. Additionally, the company is facing significant losses, as indicated by a negative net profit margin of -34.93% and negative EBIT and EBITDA margins, suggesting operational challenges.30
Negative
Balance Sheet
The balance sheet shows high leverage, with a debt-to-equity ratio of 2.26, indicating significant reliance on debt financing. Stockholders' equity has diminished, contributing to a low equity ratio of 20.81%. Additionally, the return on equity remains negative, indicating persistent profitability issues.35
Negative
Cash Flow
The cash flow statement highlights negative free cash flow and a declining trend in operating cash flow, further exacerbating financial strain. The operating cash flow to net income ratio is negative, underscoring the company's inability to generate cash from operating activities.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 41.95M | 41.02M | 45.84M | 31.05M | 31.75M | 25.10M | Gross Profit |
| 18.70M | 18.11M | 21.93M | 14.92M | 16.15M | 10.82M | EBIT |
| -4.25M | -5.06M | -11.65M | -18.17M | -4.74M | -1.26M | EBITDA |
| -3.07M | -7.05M | -943.62K | -11.80M | -678.63K | 1.54M | Net Income Common Stockholders |
| -9.73M | -14.33M | -8.71M | -19.68M | -11.15M | -4.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.92M | 1.62M | 1.66M | 10.58M | 16.84M | 1.71M | Total Assets |
| 21.32M | 29.68M | 35.54M | 47.69M | 42.72M | 20.77M | Total Debt |
| 9.66M | 13.97M | 9.86M | 14.30M | 13.98M | 11.90M | Net Debt |
| 7.73M | 12.35M | 8.20M | 3.71M | -2.86M | 10.19M | Total Liabilities |
| 18.61M | 23.50M | 19.90M | 25.60M | 22.93M | 18.56M | Stockholders Equity |
| 2.71M | 6.18M | 15.64M | 22.09M | 19.79M | 2.21M |
| Cash Flow | Free Cash Flow | ||||
| -2.02M | -2.84M | -5.37M | -10.68M | 1.58M | -2.33M | Operating Cash Flow |
| -1.51M | -2.81M | -2.34M | -8.24M | 3.42M | -551.18K | Investing Cash Flow |
| -1.76M | -2.22M | -4.10M | -14.44M | -6.64M | -1.78M | Financing Cash Flow |
| 3.57M | 4.99M | -2.37M | 16.52M | 18.16M | 2.05M |
VIQ Solutions Technical Analysis
Negative
0.20
Price Trends
0.23
Negative
0.22
Negative
0.22
Negative
Market Momentum
-0.01
Positive
42.36
Neutral
2.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VQS, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.23, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VQS.
VIQ Solutions Risk Analysis
VIQ Solutions disclosed 30 risk factors in its most recent earnings report. VIQ Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VIQ Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$207.97M | ― | -3.34% | 0.45% | -13.99% | -421.95% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
55 Neutral | C$562.83M | ― | -19.36% | ― | 43.00% | 50.39% | |
50 Neutral | $3.72B | ― | -13.55% | ― | -26.72% | 77.64% | |
48 Neutral | C$865.54M | ― | -42.62% | 0.59% | 2.97% | 25.63% | |
42 Neutral | C$9.68M | ― | -103.49% | ― | 6.14% | 61.43% |
* Technology Sector Average
Performance Comparison
TSE:VQS
VIQ Solutions
0.20
-0.06
-23.08%
TSE:BB
BlackBerry
6.16
2.01
48.43%
TSE:KSI
kneat.com
5.83
2.15
58.42%
TSE:SYZ
Sylogist
8.36
-0.53
-5.96%
TSE:DND
Dye & Durham
12.42
-1.73
-12.23%
VIQ Solutions Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -16.67% | Next Earnings Date: Mar 26, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant financial improvements in revenue growth, adjusted EBITDA, and net loss reduction. The company achieved major contract renewals and productivity gains through AI-driven enhancements, though it acknowledges the ongoing early stage of AI integration.Highlights
Significant Improvement in Adjusted EBITDA
Q3 2024 saw a $2.1 million improvement in adjusted EBITDA year-over-year, with a $4.8 million increase for the first 9 months, highlighting operational discipline and focus on margin expansion.
10% Revenue Growth
Revenue grew by 10% compared to the same period last year, showcasing the success of the company's technology-led strategy.
Major Contract Renewals
The company secured substantial renewals and new contracts, particularly in Australia, with improved pricing and terms.
AI-Driven Enhancements
Advancements in the NetScribe platform and AI-driven solutions led to a 30% productivity improvement among transcribers in Australia.
Positive Net Loss Reduction
Net loss was reduced to $1.1 million in Q3, an improvement of $3.3 million from the same period last year, and a $7.9 million reduction over the first 9 months.
Lowlights
Early Stage of AI Integration
Despite advancements, the company is still in the preliminary stage of AI integration, indicating ongoing challenges in fully realizing potential efficiencies.
Company Guidance
During the Q3 2024 earnings call for VIQ Solutions, significant financial improvements were highlighted, including a $2.1 million year-over-year increase in adjusted EBITDA and a $7.9 million reduction in net loss for the first nine months. The company reported a 10% revenue growth compared to the same period last year, with Q3 revenue at $11.1 million and gross profit increasing by 19% to $5.1 million. Net loss for the quarter was reduced to $1.1 million, marking a $3.3 million improvement. For the first nine months of 2024, revenue reached $32.6 million, with a gross profit of $14.8 million. The strategic focus on productivity, margin expansion, and cost management has positioned VIQ Solutions well for continued financial stability and growth as they leverage AI integration to modernize industry operations.VIQ Solutions Corporate Events
VIQ Solutions Announces Leadership Change
Dec 10, 2024
VIQ Solutions has announced the retirement of its Chief Operating Officer and President, Susan Sumner, who will transition to an advisory role before fully stepping down in early 2025. Sumner played a significant role in advancing the company’s secure, AI-driven technology solutions. Her departure marks a notable change in leadership for VIQ Solutions as it continues to serve crucial sectors with its cutting-edge digital services.
VIQ Solutions Reports Strong Q3 2024 Results
Nov 12, 2024
VIQ Solutions has reported impressive financial results for Q3 2024, driven by revenue growth and improved operational efficiency. Key improvements in their AI-driven Netscribe platform and successful court migrations in Australia contributed to increased margins and significant productivity gains. The company is well-positioned for continued growth with enhanced client engagement and robust contract renewals.
VIQ Solutions to Announce Q3 2024 Financial Results
Nov 6, 2024
VIQ Solutions, a leader in AI-driven digital voice and video capture technology, will announce its third-quarter 2024 financial results on November 12, 2024. The company will discuss these results in a conference call the following day, offering investors insights into its performance and future prospects.
VIQ Solutions Secures New Loan and Amends Credit Terms
Nov 4, 2024
VIQ Solutions has secured a $1.5 million term loan from Beedie Investments, with an initial $500,000 already advanced and the rest available in $500,000 tranches. The company intends to use the funds for general corporate purposes, while also amending its existing $15 million loan agreement to increase the interest rate to 15.75%.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.