Quisitive Solutions (QUIS) Q2 2024 earnings summary

Executive summary

• Revenue and earnings remained stable in the first half of 2024, with growing customer demand and momentum heading into the second half and 2025.

• Over 90% of revenue in H1 2024 came from customers with more than one year of relationship, highlighting strong client loyalty and recurring business.

• Significant expansion in AI-related offerings, with over 170 customers engaged in AI projects and a $15 million AI pipeline.

• Enhanced partnership with Microsoft, including unique investment and funding for AI go-to-market initiatives and team expansion.

• Completed the sale of BankCard USA, exiting the payments division to focus on Microsoft cloud and AI services.

Financial highlights

• Q2 2024 Global Cloud Solutions revenue was $29.6 million, up 2% year-over-year, with gross profit from continuing operations at $12.5 million.

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

• Gross margin rose to $12.5 million (42.1% of revenue), up 7% from Q2 2023.

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

• Cash on hand at June 30 was $5.3 million; term loans at $33.15 million with a 1.8x pro forma leverage ratio.

Outlook and guidance

• Fiscal 2024 guidance maintained, with expectations for incremental revenue improvement in the second half.

• Fiscal 2024 revenue from continuing operations is projected between $120 million and $130 million.

• Fiscal 2024 pro forma Adjusted EBITDA guidance is $15 million to $17 million.

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

• Management anticipates full-scale AI deployment in 2025, leveraging a strong backlog of AI roadmap services.