Canada's VIQ Solutions Q3 adjusted EBITDA rises 64% on cost discipline
VQS•VIQ Solutions' third-quarter revenue rose 1% year over year to $5.22 million, while adjusted EBITDA increased 64%, marking its tenth consecutive positive quarter. Gross margin rose to 70.0% from 65.5%.
1. Quarterly results
VIQ Solutions reported third-quarter revenue of $5.22 million, up 1% year over year, primarily driven by higher software license sales. Revenue was below the $5.80 million consensus estimate from one analyst. Adjusted EBITDA rose 64% year over year, marking the company's tenth consecutive positive quarter.
2. Margins and focus
Gross margin increased to 70.0% from 65.5%, which the company attributed to higher-margin sales and productivity gains. VIQ Solutions ceased Australian operations in July and is focusing on North America and the UK, where it plans to pursue organic growth and acquisitions. The company said it will continue its cost-reduction plan and aims to enhance its technology, including speaker identification and its streaming platform.
