Sylogist (TSE:SYZ) Releases Earnings Results

Sylogist (TSE:SYZ) released its earnings results on Thursday. The company reported C($0.08) earnings per share for the quarter, FiscalAI reports. Sylogist had a negative net margin of 17.81% and a negative return on equity of 38.65%. The company had revenue of C$14.95 million for 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 Stock Performance

Sylogist stock traded down C$0.09 during mid-day trading on Thursday, reaching C$2.60. The company’s stock had a trading volume of 6,734 shares, compared to its average volume of 64,859. The firm’s fifty day moving average price is C$2.74 and its two-hundred day moving average price is C$3.42. The company has a debt-to-equity ratio of 77.16, a quick ratio of 0.51 and a current ratio of 0.75. Sylogist has a 12-month low of C$2.05 and a 12-month high of C$6.00. The company has a market capitalization of C$60.57 million, a P/E ratio of -7.22 and a beta of 0.61.

Wall Street Analyst Weigh In

Separately, ATB Cormark Capital Markets lowered their target price on 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 investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price 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.