Quisitive Solutions (QUIS) Q2 2024 earnings summary

Executive summary

• Revenue and earnings remained stable in the first half of 2024, with Q2 2024 revenue from continuing operations at $29.6 million, reflecting strong client loyalty and recurring business.

• Over 90% of H1 2024 revenue came from customers with more than one year of engagement, indicating strong client retention.

• Strategic partnership with Microsoft deepened, including a unique investment to expand the AI Black Belt team and support go-to-market efforts.

• Significant wins in healthcare, manufacturing, and public sector, including multimillion-dollar deals and managed support extensions.

• Recognized as 2024 Microsoft Global Analytics Partner of the Year and Board International Solution Partner of the Year.

Financial highlights

• Q2 2024 revenue in Global Cloud Solutions was $29.6 million, up 2% year-over-year, with gross margin rising to $12.5 million (42.1% of revenue), up 7% from Q2 2023.

• Recurring revenue reached a record 41.9%, driven by managed services growth.

• Adjusted EBITDA from continuing operations was $3.9 million, up from $1.9 million in Q2 2023; EBITDA margin increased to 13% from 6.3%.

• Loss from continuing operations was $1.9 million, an improvement from a $3.1 million loss in Q2 2023.

• $5.3 million cash on hand and $33.15 million in term loans as of June 30, 2024.

Outlook and guidance

• Maintaining fiscal 2024 guidance for continuing operations, projecting revenue between $120 million and $130 million and pro forma Adjusted EBITDA of $15 million to $17 million.

• Anticipates AI and cloud solutions to drive growth into 2025, supported by expanded sales and technical capacity.