Quisitive Solutions (QUIS) Q3 2024 earnings summary

Executive summary

• Achieved sequential financial improvement in Q3 2024, with revenue and EBITDA increasing compared to Q2 2024, and an expanding AI-driven customer engagement pipeline.

• Gross margins in the cloud business remained healthy above 40%, stable year-over-year and slightly improved sequentially.

• Recurring revenues held steady in the 40% range, reflecting strong customer retention and engagement.

• 90% of revenue is derived from customers with over one year of engagement.

• Recognized as Microsoft Analytics Partner of the Year, with strategic alignment and partnership with Microsoft.

Financial highlights

• Q3 2024 revenue from continuing operations was $30.7 million, up from $29.6 million in Q2 2024 and nearly flat year-over-year from $30.68 million in Q3 2023.

• Gross margin was $13.2 million (42.9% of revenue), unchanged year-over-year but up from $12.5 million sequentially.

• Adjusted EBITDA was $4.2 million, up from $3.9 million in Q2 2024 but down from $4.9 million in Q3 2023.

• Loss from continuing operations was $397,000 in Q3 2024, compared to a loss of $1.38 million in Q3 2023.

• Cash on hand at quarter-end was $9.7 million; term loans stood at $32.3 million.

Outlook and guidance

• Fiscal year 2024 revenue guidance: $119–$121 million.

• Fiscal year 2024 pro forma adjusted EBITDA guidance: $15–$16 million.

• Q4 expected to be seasonally lower due to fewer billable days and reduced customer availability.

• Anticipate AI team expansion to begin impacting revenue in Q2 2025 and beyond.

• Early 2025 expected to be a key momentum-building phase for growth.