Sylogist (TSE:SYZ) Issues Earnings Results

Sylogist (TSE:SYZ) announced its quarterly earnings data on Thursday. The company reported C($0.08) EPS for the quarter, FiscalAI reports. Sylogist had a negative return on equity of 38.65% and a negative net margin of 17.81%. The firm had revenue of C$14.95 million during the quarter.

Here are the key takeaways from Sylogist’s conference call:

• Cloud growth and bookings showed momentum: SaaS ARR increased 4% year over year to CAD 35 million, with Victim Services Suite ARR doubling and Q3 ARR bookings reaching a five-quarter high. Partner-sourced bookings accounted for more than half of the total.
• Overall results weakened: Revenue fell 6% to CAD 14.9 million, adjusted EBITDA declined to CAD 1.6 million from CAD 3.1 million, and the company reported a CAD 1.8 million net loss.
• Retention remains a concern: SaaS net revenue retention fell to 100% from 106%, mainly due to churn and downsells in the Education segment; maintenance and support revenue declined 12% year over year.
• Project services continued to weigh on margins: The segment posted a negative 1% gross margin as delivery and channel-support costs exceeded revenue. Management expects some drag to continue in Q4 and is targeting a healthier contribution margin through 2027.
• Liquidity and financing improved: Sylogist generated CAD 7.3 million in operating cash flow and ended the quarter with CAD 9.3 million in cash; it also extended its credit-facility maturity to September 2028. Management expects cash to draw down seasonally in Q4 and Q1.

Sylogist Trading Down 2.6%

TSE:SYZ opened at C$2.62 on Friday. The company has a current ratio of 0.75, a quick ratio of 0.51 and a debt-to-equity ratio of 77.16. Sylogist has a 1-year low of C$2.05 and a 1-year high of C$6.00. The firm has a market capitalization of C$61.03 million, a price-to-earnings ratio of -7.28 and a beta of 0.61. The business’s 50-day moving average price is C$2.74 and its two-hundred day moving average price is C$3.40.

Wall Street Analysts Forecast Growth

Separately, ATB Cormark Capital Markets reduced their target price on shares of Sylogist from C$5.50 to C$4.75 and set a “speculative buy” rating on the stock in a research note on Thursday, August 13th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Sylogist currently has a consensus rating of “Hold” and a consensus price target of C$4.75.

Sylogist Company Profile

Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers across the government, nonprofit, and education market segments. The Company’s stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, inclusive of full financial statements together with Management’s Discussion and Analysis, can be found at sedarplus.ca or at sylogist.com.