TORONTO, April 30, 2019 (GLOBE NEWSWIRE) -- VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture Exchange: VQS and OTC Markets: VQSLF), a global provider of secure, AI-driven, digital voice and video capture technology and services for law enforcement, legal, insurance, courts, and transcription service provider markets, today reported financial results for the fiscal year, ending December 31, 2018 and filing of MD&A. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”). The highlights below have been derived from the latest filings and MD&A.

“Fiscal 2018 was a transformative year for VIQ as we executed on the strategy articulated earlier in the year,” said Sebastien Pare, VIQ President and CEO. “By year end, we established a solid foundation for continued growth, margin expansion and return to sustainable cash profitability throughout 2019.  While our actual and pro forma 2018 financial results include several one-time items, including transition purchase accounting adjustments, transaction closing costs, and impacts of the US government shutdown in the fourth quarter, our operating performance during the first quarter of 2019 is tracking ahead of plan with an approximate revenue and gross margin of $6.3M and $2.8M respectively compared to $3.0M and $1.2M of revenue and gross margin in Q1 2018. An approximate increase in revenue and gross margin of 110% and 133% respectively compared to Q1 2018.”

“We completed previously announced investments in VIQ’s new artificial intelligence and human workflow platform during 2018 that leverages our clients’ wide range of recording technologies. Four cybersecurity compliant Cloud platforms are now in production in the United States, Australia, Europe and Canada.  We completed three acquisitions during the last two months of 2018 and built a high performing operating team combining exceptional expertise in cybersecurity, artificial intelligence, cloud scalability, and transcription. Our strategic incremental migration to a SaaS-based revenue model and higher margins enabled significant organic volume increases, which, when combined with our completed acquisitions, results in approximately 88% pro forma recurring revenue by year end 2018.” added Mr. Pare.

“Our 1,200 international customers are experiencing enormous evidence data capture expansion from audio, video, sensors, body cameras, drones and smartphones. Clients are pressured to transform multi speakers and recorded evidence into documents and transcripts more rapidly, securely and cost effectively.”

“This relentless pressure on clients is forcing a fundamental digital transformation in our industry, and VIQ is laser focused on delivering an artificial intelligence and human workflow platform that delivers improved performance and meets our clients’ needs. We believe these trends and challenges will accelerate in the future.”

“VIQ is focused on leading this digital transition – strategically executing our next level of integration and acquisitions, while focused on creating long-term value for our shareholders,” stated Mr. Pare. 

Conference Call Details

The Company will hold a conference call to discuss the 2018 financial results full year, including pro forma results in the context of the three accretive acquisitions in the United States late in the year along with Q1 2019 results expected for release by May 7^th, 2019. The call will consist of a brief update by VIQ President and CEO Sebastien Paré and Alexie Edwards, VIQ’s new CFO, followed by a question period.

The call will be held on Thursday, May 9^th at 16:00 ET.

Key Business Highlights in 2018 include:

• VIQ currently generates revenue in 47 US states; and 15 countries globally for 1,200 customers from operating headquarters in Phoenix, Arizona.
  
  
• Audited reported revenues were $11.5M for 2018. On a pro forma basis, revenues were $23.7M for 2018, equivalent to 103% growth since 2017. VIQ doubled in size in 2018. 
  
  Reported 2018 adjusted EBITDA loss of $2.5M due to planned investments in AI, Mobility and commercial launches of four cloud platforms in the United States, Australia, Europe and Canada at year end to enable continued SaaS transition and migration of newly acquired customers as early as Q1 2019.  On a pro forma basis the EBITDA was $761k for 2018. 

• Q1 2019 operating performance is tracking ahead of plan with approximate revenue and gross margin of $6.3M and $2.8M respectively versus $3.0M and $1.2M in Q1 2018. An approximate increase in revenue and gross margin of 110% and 133% respectively compared to Q1 2018.
  
  
• During Q1 2019, VIQ announced the first customer group migration into the new cloud NetScribe^TM aiAssist^TM platform completed in 2018.
  
  
• Completed commercial launches of NetScribe, aiAssist and MobileMicPro^TM as SaaS offerings - anchor products for 2019 that drive the digital collaboration between humans and machines and continue to develop market specific lexicons and AI algorithms in 2019.
  
  
• Transition from traditional software licenses to a SaaS-based revenue model continues with significant gains planned in the next 12 months.
  
  
• Appointed Chief Operating Officer to the executive team to build an operational infrastructure and implement the integration of VIQ’s acquisition strategy.
  
  
• Completed deployment of market specific AI services from proceeds of 2017 capital raise.
  
  
• Have access to $16.5M USD in capital and utilized $11.2M USD to execute the VIQ 2018 acquisition strategy with three US-based transcription companies, adding a combined $13.3M in recurring revenue and $3.3M EBITDA by leveraging VIQ’s global transcription expertise and deploying AI services to improve margins and deliver customer value. This also added 450 customers in the United States via acquisitions - 400 in Law Enforcement and 50 in Insurance. 
  
  
• Several letters of intent are in motion for 2019 to continue the acquisition strategy and extend VIQ's footprint in an estimated $6B, highly fragmented market for voice to text transcription in our chosen industry verticals.
  
  
• Completed patent for ‘Evidence based digital training portfolio’ with additional patent applications in the advanced registration stage.
  
  
• VIQ currently transforms approximately 9% of the digital evidence volume its 1,200 customers capture yearly on a 2018 pro forma basis. This translates to $20.8M in pro forma recurring revenue per year. The company is targeting to double this percentage of volume and double its recurring revenue over the next two years.   
  
  
• For the period January 1 to December 31, 2018, YTD VQS trading volume was 40.6M shares, up 20.5% over 2017, creating record-high liquidity on more than seven North American exchanges.

Financial Results for 2018

The Audited Consolidated Financial Statements and Management’s Discussion and Analysis of  Financial Condition and Results of Operations for the year ended December 31, 2018, will be posted on the SEDAR website at www.sedar.com. The financial information included in this news release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2018, including the notes thereto.

The Company will hold a conference call to discuss the 2018 full year, including pro forma results along with Q1 2019 results expected for release by May 7^th, 2019. The call will consist of a brief update by VIQ President and CEO Sebastien Paré and Alexie Edwards, VIQ’s new CFO which will be followed by a question period.

The call will be held on Thursday, May 9^th at 16:00 ET. Participants may join the conference call by dialing 1-855-223-2840 within North America or 1-647-788-4945 outside of North America five to ten minutes before the scheduled start time. The conference ID is 4464116 “VIQ Solutions Year End and Q1 2019 Overview Call”.

A telephone replay will be available for two business days beginning on May 10. To access the replay, please dial in 1- 855-859-2056 and follow the prompt with the passcode number 4464116.

For further information: Laura Serrano-Haggard, Chief Marketing Officer, VIQ Solutions, 1-800-263-9947, lserranohaggard@viqsolutions.com

About VIQ Solutions Inc.

VIQ Solutions is a global expert in video capture software and audio recording with voice-to-text capabilities. VIQ provides a cyber-secure AI technology and service platform to law enforcement, immigration, medical, legal, insurance, courts, and transcription service providers, enabling them to unlock the value of their enterprise digital media and streamline their document-creation workflow, using artificial intelligence tools for measurable business gains.

For more information about VIQ, please visit viqsolutions.com.

Forward-looking Statements

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, management’s targets for the Company’s growth in 2018, as well as the size, scope, and timing of the implementation of projects currently in the pilot phase.

Forward-looking statements or information is 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 Company’s recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.  

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.