Quorum Information Technologies (QIS) Q4 2024 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $8.3 million for 2024, up 18% year-over-year, with Cash EBITDA rising 89% to $5.5 million, reflecting a focus on profitable growth and cross-selling to existing customers.

• Total revenue for 2024 was $40 million, a 1% decrease year-over-year, with SaaS revenue up 2% to $28.8 million and BDC revenue down 8% to $10 million.

• Over 1,400 dealership customers in North America use at least one of 13 integrated software solutions.

• Paid down $5.1 million in debt, reducing the BDC capital loan facility to $4 million at year-end 2024.

Financial highlights

• Q4 2024 total revenue increased by 1% year-over-year to $10 million; SaaS revenue up 2% to $7.2 million; BDC revenue down 1% to $2.6 million.

• Full year 2024 SaaS revenue was $28.8 million (up 2%), BDC revenue $10 million (down 8%), and gross margin increased to $19.8 million (50%).

• Adjusted EBITDA margin expanded from 17% to 21%; Cash EBITDA margin doubled from 7% to 14%.

• Net income for 2024 was $2.5 million, up from a loss of $1.0 million in 2023.

• Net working capital at $3.2 million and cash/cash equivalents at $2.2 million as of December 31, 2024.

Outlook and guidance

• Optimism for continued deal closures and customer interest, but uncertainty remains due to potential impacts from new automotive tariffs in the U.S. and Canada.

• Profitability expected to remain consistent, with ongoing efforts to optimize revenue growth and EBITDA margins.

• Improved cash flow and balance sheet position the company for future strategic investment opportunities.

• Plans to pay down the remaining $1.2 million BDC Capital Cash Flow Loan by end of 2025 and continue prepaying 15% of the Mezzanine Loan annually until maturity in 2027.