Sylogist (SYZ) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 results with SaaS ARR growing 17% year-over-year to CAD 31.1 million, and total ARR up 9% to CAD 44.9 million.

• Recurring revenue comprised 72% of Q4 total revenue, up from 66% last year.

• Bookings grew 63% year-over-year, with Q4 bookings up 37% quarter-over-quarter and nearly 40% from the SylogistEd sector.

• Partner-attached bookings rose to 32% of total, supporting scalable growth.

• Net promoter score improved to 62, up from 51 in 2023, reflecting enhanced customer satisfaction.

Financial highlights

• Q4 revenue was CAD 15.3 million, down 1% year-over-year; full-year revenue was CAD 64.5 million, up 2%.

• SaaS subscription revenue grew 15% in Q4 and 12.6% for the year, offset by declines in project services and hardware revenue.

• Q4 adjusted EBITDA was CAD 3.2 million (21.1% margin); full-year adjusted EBITDA was CAD 16.4 million (25.4% margin).

• Q4 gross margin declined to 59% from 62% last year; full-year gross margin at 60% versus 62%.

• Ended Q4 with CAD 13.3 million in cash and cash equivalents.

Outlook and guidance

• SaaS ARR growth guidance for 2025 remains at 20%-25%, factoring in potential turbulence in the NGO segment.

• Management expects the transition to partner-led project services to temporarily impact top-line growth but enhance long-term operating leverage and scalability.

• Confident in continued strong bookings and deal flow across government and education segments.