Total revenue came in at $30.9 million with our recurring SaaS revenue run rate, based on Q4 results, now running at $24 million annually. Our customer count at year end was 1,021, and our SaaS monthly recurring revenue per customer (MRRPU) in Q4 was $1,971!
In addition, we were happy to report our Adjusted EBITDA1 was the highest in the Corporation’s history for both Q4 and the full year 2020 at $1.5 million and $4.9 million respectively.
We are also proud of the relationships we have further cemented with our customers in 2020. We plan on acheiving additional growth in our recurring revenue streams in 2021 as auto dealerships rely on more Quorum solutions to modernize and streamline their operations. To date, 30% of the Canadian franchised dealerships have at least one Quorum product installed in their dealership.
Despite the COVID lock-down restrictions imposed in many Canadian provinces, the April vehicle sales for dealerships were still relatively strong.
According to DesRosier’s Automotive Group, new vehicle sales in Canada increased by 254.4% in April 2021 compared to last April with 162,455 units sold despite ongoing pandemic restrictions and microchip driven shortages of select products.
April 2020 sales had fallen to 45,833 units, the lowest April monthly total since 1951. DesRosier’s says with Canada’s vaccination drive finally ramping up but with microchip shortages persisting, the outlook for May – traditionally the largest sales month of the year – will warrant close attention.
As dealers begin to bounce back from 2020 their operations continue to evolve and modernize as consumer expectations, new mobility offerings (“ACES” trends – autonomous driving, connectivity, electrification, shared mobility), and on-going technological disruptions drive many changes in their operations. Quorum products and services are a key part of their modernization efforts.
Here is the government’s press release on this news…. Government of Canada helps Quorum Information Systems ramp up growth opportunities (Source: Government of Canada, Atlantic Canada Opportunities Agency (ACOA) – Atlantic Canada’s advanced technology industry is an important part of building a strong, resilient economy. That is why the Government of Canada is helping automotive technology company Quorum Information Systems Inc. create more jobs and grow its business. The Honourable Seamus O’Regan, Minister of Natural Resources and Member of Parliament for St. John’s South-Mount Pearl, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, today announced a repayable contribution of $500,000 to Quorum Information Systems Inc. Today’s announcement further demonstrates the Government of Canada’s commitment to developing a more innovative economy by supporting growing technology companies.
May 4, 2021 – Quorum Announces Early Debt Paydown– We announced today we made a prepayment of $1.5 million in principal and interest of our BDC Capital Inc Loan Facility (“BDC Capital Facility”). As a result of the prepayment, the Company reduced the outstanding principal amount under the BDC Capital Facility by $1.49 million from $8.13 million to $6.64 million. The debt prepayment was funded with excess cash on hand and Quorum continues to have access to $6.9 million in additional funding through the BDC Capital Facility for potential future acquisitions.
April 21, 2021 – 2020 Annual Results – “COVID-19 presented a number of challenges in 2020 for the automotive industry. Despite the challenges, Quorum had a strong year posting a record Adjusted EBITDA1,” stated Maury Marks, President and CEO. “One-time, COVID-19 related Q2 customer discounts of $1.5 and $0.2 million for SaaS and BDC respectively resulted in a SaaS revenue decrease of 1% and BDC revenue increase of only 9% in 2020 compared to 2019. In Q4, Quorum reported a record SaaS revenue quarter as both SaaS and BDC revenue increased in Q4 over Q3 by 2% and 5% respectively, which equates to 8% and 20% when annualized.”
April 6, 2021 – EDealer Agreement – Quorum has entered into a partnership agreement with EDealer, Canada’s largest supplier of franchised dealership web sites. This new partnership will allow EDealer to resell Quorum’s Autovance Desk and MyDeal products to their automotive dealership customers.
Thursday, April 22: 2020 Year End Results Conference Call with Webcast (Audience Replay)
Thursday, April 22: Planet MicroCap Showcase (Virtual) Investor Presentation(Audience Replay)
UPCOMING MAY EVENTS:
Wednesday, May 26: Q1 2021 Quarter End Results News Release (after markets close)
Thursday, May 27: Q1 2021 Quarter End Results Conference Call with Webcast
11:00 am Mountain (1:00 pm Eastern) Webcast Registration and Access
Toll-free dial-in number: (844) 967-3741
Thank you for your continued interest in Quorum – I hope to see you at our upcoming Q1 2021 results investor conference call or concurrent webcast on May 27!
President and CEO
1Adjusted EBITDA (non-GAAP) – Net income (loss) before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, foreign exchange gains and losses, one-time acquisition-related expenses and restructuring fees.