Computer Modelling Group (CMG) Canaccord Genuity’s 45th Annual Growth Conference summary

Industry context and challenges

• Oil and gas extraction is increasingly complex, requiring advanced simulation technology to maximize output and minimize costs or environmental impact.

• The industry is shifting from easy oil to unconventional methods, increasing operational complexity and data requirements.

• Simulation and seismic data interpretation are critical for decision-making in upstream oil and gas.

Strategic direction and growth

• The company has doubled revenue in three years, with recurring revenue now at 67% and EBITDA margins above 40%.

• The 4.0 Strategy, launched in 2022, focuses on growth, profitability, and acquisitions, leveraging strong cash flow from core simulation business.

• $73 million in capital deployed over 24 months, acquiring $50 million in revenue from low-margin businesses to expand margins.

Acquisition and platform strategy

• Three recent acquisitions (Bluware, Sharp Reflections, SeisWare) form a platform of standalone but interconnected solutions.

• The acquisition framework targets high-return capital deployment, with a focus on strengthening the core and expanding into adjacent verticals like mining and utilities.

• The company is exploring expansion from upstream into midstream, downstream, and non-oil and gas sectors.