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VIQ Solutions (TSE:VQS)
TSX:VQS
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VIQ Solutions
(TSX:VQS)
44Neutral
VIQ Solutions (VQS) vs. S&P 500 (SPY)
Market Cap
C$8.90M
Dividend YieldN/A
Average Volume (3M)41.44K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth6.80%
EPS Growth62.78%
CountryCA
Employees334
SectorTechnology
Sector Strength51
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding52,334,020
10 Day Avg. Volume23,065
30 Day Avg. Volume41,443
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.17
Price to Cash Flow (P/CF)17.40
P/FCF Ratio2.20
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
0.18
Price Trends
0.22
Negative
0.21
Negative
0.22
Negative
Market Momentum
>-0.01
Positive
35.67
Neutral
17.46
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 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.22, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.67 is Neutral, neither overbought nor oversold. The STOCH value of 17.46 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$191.56M | ― | -1.93% | 0.47% | -13.99% | -421.95% | |
57 Neutral | $19.95B | 9.66 | -12.05% | 2.76% | 5.40% | -24.89% | |
57 Neutral | C$554.68M | ― | -19.36% | ― | 43.00% | 50.39% | |
54 Neutral | $2.61B | ― | -7.59% | ― | -31.15% | 30.02% | |
48 Neutral | C$552.38M | ― | -42.62% | 0.91% | 2.97% | 25.63% | |
44 Neutral | C$8.90M | ― | -227.19% | ― | 6.80% | 62.78% |
* Technology Sector Average
Performance Comparison
TSE:VQS
VIQ Solutions
0.18
-0.04
-18.18%
TSE:BB
BlackBerry
4.40
0.62
16.40%
TSE:KSI
kneat.com
6.00
2.33
63.49%
TSE:SYZ
Sylogist
8.48
-1.15
-11.94%
TSE:DND
Dye & Durham
8.22
-6.66
-44.76%
VIQ Solutions Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: -10.00% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including a positive adjusted EBITDA for the full year, revenue growth, and cost control improvements. However, there were some setbacks in Q4, including an increased net loss and decreased gross profit due to non-recurring one-time costs.Highlights
Full Year Positive Adjusted EBITDA
For the first time, VIQ delivered a full year of positive adjusted EBITDA, reaching $2 million, a $6 million improvement from the previous year.
Revenue Growth
Revenue increased by 5% year-over-year to $43.2 million, supported by consistent customer volumes and a growing base of SaaS clients.
Gross Margin Improvement
Gross profit rose to $19.2 million, up 6%, with gross margin improvement to 44.5%, driven by cost optimization and automation gains.
Enterprise Contracts Secured
Secured several enterprise contracts amounting to $38.9 million in multiyear bookings, significantly strengthening the recurring revenue base.
Operational Efficiency and Cost Control
Selling and administrative expenses declined 22% year-over-year, reflecting disciplined execution and workforce optimization.
Strategic Focus on AI and Automation
Key accomplishments included enhancing the core AI platform and achieving 100% year-over-year revenue growth in the AI-powered FirstDraft solution.
Lowlights
Q4 Net Loss Increase
Net loss of $3.6 million in Q4, an increase of $0.6 million from the same period in the prior year, due primarily to foreign exchange loss and restructuring costs.
Q4 Gross Profit Decline
Gross profit in Q4 decreased by 6% from the same period in the prior year, due to certain non-recurring one-time costs related to retro pay adjustment and an onerous contract loss.
Company Guidance
During the VIQ Solutions Fourth Quarter and Full Year 2024 Earnings Conference Call, the company outlined significant progress in financial and operational metrics. In 2024, VIQ achieved a $6 million improvement in adjusted EBITDA, reaching $2 million, and narrowed their net loss by $7.3 million year-over-year, reflecting a strategic focus on cost control and automation. Revenue increased by 5% to $43.2 million, with gross profit rising by 6% to $19.2 million and a gross margin of 44.5%. Selling and administrative expenses dropped by 22%, contributing to the improved financial performance. The company secured $38.9 million in multiyear bookings and onboarded 59 new SaaS clients, doubling revenue in their AI-powered FirstDraft solution. These advancements were driven by strategic investments in automation, with a focus on AI-driven tools, which improved transcription speed, accuracy, and scalability. Looking forward to 2025, VIQ aims to continue expanding margins and generating free cash flow through automation, dynamic pricing, revenue diversification, and enhanced AI platform capabilities.VIQ Solutions Corporate Events
Business Operations and Strategy
VIQ Solutions Announces Strategic Update
Neutral
Mar 28, 2025
VIQ Solutions has announced a significant update that is expected to influence its operational strategies and market positioning. The release highlights a strategic move that could have implications for stakeholders, potentially impacting industry dynamics and the company’s future growth trajectory.
Financial Disclosures
VIQ Solutions to Announce 2024 Financial Results
Neutral
Mar 26, 2025
VIQ Solutions announced it will release its financial results for the fourth quarter and full year of 2024 on March 28, 2025. The company will host a conference call on April 1, 2025, to discuss these results, providing stakeholders with insights into its financial performance and strategic direction.
Executive/Board ChangesBusiness Operations and Strategy
VIQ Solutions Concludes Strategic Review, Continues Current Business Plan
Neutral
Mar 20, 2025
VIQ Solutions has concluded its strategic review process, deciding to continue with its current business plan as a public company, following a thorough evaluation of various transaction proposals and strategic alternatives. The company aims to focus on operational efficiencies, margin expansion through automation, and disciplined cost management, while scaling its global technology platform for sustainable growth. The conclusion of the review also marks the resignation of David Sharma from the board, who played a significant role in the process.
Private Placements and FinancingBusiness Operations and Strategy
VIQ Solutions Initiates Strategic Review and Amends Credit Agreement
Neutral
Feb 3, 2025
VIQ Solutions has announced a strategic review process to explore alternatives for unlocking stakeholder value, reflecting its commitment to improving financial performance through digital transformation and competitive enhancements. Concurrently, VIQ has amended its credit agreement with Beedie Investments Ltd., adjusting financial covenants and involving related party transactions, to support its strategic review and financial flexibility.
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.