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Software Technology Solutions
Quorum offers innovative and robust technology solutions and services to traditional and electric vehicle dealerships and Original Equipment Manufacturers (“OEM”) across North America.
The total North American franchised dealership market value for software solutions is $6.0 billion annually. A key problem for dealerships is that they typically use many disparate solutions across 25 categories of software solutions and 700 vendor’s software within those categories to run their business.
How Quorum Helps
Quorum’s solutions help solve this major problem. Quorum’s integrated product suite drives efficiencies into the dealership, leverage a single enterprise reporting solution, provide measurable Return on Investment (“ROI”) with the cost of Quorum’s solution typically is 50% less than competing disparate products.
Customer Take-Up of Quorum Software Solutions
Dealerships typically start with a single product from Quorum’s product suite and they experience increased synergy and value as additional solutions are deployed to their dealerships. For Quorum, the stickiness of the product suite increases as dealerships deploy added products. Quorum’s product suite currently covers 11 of the 25 most common categories and Quorum has the opportunity to develop and/or partner and/or acquire products for the remaining categories.
Latest Customer Metrics
At the of Q3 2020, Quorum served 1,045 rooftops, at an average SaaS revenue per month of $1,886 per rooftop in Q3 2020. Of the 1,045 rooftops serviced by Quorum, 912 are in Canada and 133 are in the United States. Of the Total Available Market, Quorum has a 28% penetration in Canada and 0.7% in the United States.
At an industry level, the automotive dealer market is seeing increased consolidation into larger dealer groups, which creates opportunities for Dealership Management System (“DMS”) providers like Quorum that can integrate multiple dealer rooftops as a single integrated solution.
On their own, Quorum solutions allow dealerships to drive greater success and results, at less cost than its competitors’ offerings. When integrated with other Quorum solutions, the Quorum product suite delivers escalating synergy and expanding value.
Our Sales Strategy
Quorum sells its solutions to both dealer groups (single ownership of multiple dealerships) and single dealership customers. Initially, dealerships do not typically install Quorum’s complete suite of products and tend to purchase the Enterprise Resource Planning system (“ERP”, often referred to as a DMS in the automotive industry), Customer Relationship Management (“CRM”) or Digital Retailing (“DR”) as a starting point. Quorum utilizes a beachhead strategy to capture new customers, and then expands the product suite into the dealership.
Quorum Delivers Measurable ROI for its Customers
Each of Quorum’s solutions has a measurable ROI for the dealership. As an illustration, Quorum’s service lane inspection and quoting solution, which is part of the ERP and CRM systems, drives approximately $60,000 of customer revenue per dealership per month. As dealerships utilize more of Quorum’s product suite, both the ROI and the stickiness of Quorum’s solution increases. Additionally, Quorum’s Enterprise Reporting (“ER” or “Q Analytics”) solution provides one reporting tool for the entire product suite. This allows dealership management to use a single reporting tool that provides dealership critical metrics and provides the ROI calculations for individual products and the full suite.
Quorum is indispensable to current clients and has a large available market to allow for future growth. Quorum has to the opportunity to:
- Grow Quorum’s customer base by capturing new customers in both Canada and the US,
- Increase Monthly Recurring Revenue Per Customer (“MRRPU”) by cross-selling Quorum’s products in the product suite to existing customers, and
- Develop, partner or acquire new and innovative products.
Quorum trades on the TSX Venture Exchange under the symbol QIS.
For more information, please see our latest quarterly Investor Presentation and Fact Sheet.
If you any questions, please email us at Investors@QuorumDMS.com.