Welcome to Quorum’s October 2021 Investor Newsletter!
On August 25th we announced our Q2 2021 results and once again, we delivered a record-setting revenue quarter!
Total revenue for Q2 2021 was CAD 9.1 million, a 6% increase over Q1 2021 and a 53% increase over Q2 2020. Our revenue growth success in Q2 2021 was the result of four key factors:
An increase in our dealership rooftop count;
Expansion of our monthly recurring revenue per customer (MMRPU);
Expansion of BDC (Business Development Centre) services to include all of AutoCanada’s Collision Centres; and
Increased market adoption of our “consumer direct” software product suite.
Product Innovation into 2022 and Market Penetration Initiatives
Quorum’s product suite provides a frictionless workflow for dealerships combined with a consumer-direct strategy to provide a seamless digital retailing experience. This approach allows dealerships to provide a modernized consumer experience that integrates flawlessly with the in-dealership process.
Some of the exciting new initiatives in support of our product development and market penetration strategy include:
MyDeal – Sales of MyDeal through Quorum sales channels PLUS a new sales channel partnership with EDealer to sell MyDeal and Autovance Desk products;
PowerLane – Increasing PowerLane adoption and its corresponding 25%+ increase in work hours per work order at participating auto dealerships – delivering increased dealership ROI and a convincing reason for expanding market adoption;
Communicator – Our best-of-class electronic messaging platform Communicator now delivers new Digital Marketing capabilities designed to help dealerships Make More Money (M3); and
Leader Generator and AutoVance Desk – Certification of Lead Generator and AutoVance Desk under the Retail Excellence Program (REP) by General Motors of Canada. Lead Generator is a comprehensive tool that utilizes key analytics that allow dealerships to find customers that may be in the market for their next vehicle, including customers that have a positive equity position in their trade-in vehicle.
It’s truly an exciting time for Quorum as we continue to execute on our product development strategy in support of accelerating our dealership customers’ success – especially as customer engagement patterns continue to evolve in a more digital environment!
September 29, 2021 – Quorum Announces Lead Generator is General Motors (GM) Certified – Quorum to sell both Lead Generator and Autovance Desk as GM REP certified products – Quorum was pleased to announce that Lead Generator has been named a certified product under the GM Retail Excellence Program (REP) by General Motors of Canada. Lead Generator is a comprehensive tool that utilizes key analytics that allow dealerships to find customers that may be in the market for their next vehicle, including customers that have a positive equity position in their trade-in vehicle. “Lead Generator helps us anticipate a customer’s needs and find customers that may be in the market for a new vehicle,” stated Glenn Smaha, General Manager of Davis Airdrie. “Additionally, like all products in the Quorum suite, Lead Generator is tightly integrated to the Quorum Sales CRM solution and Autovance Deskwhich allows us to easily action a sales lead.”
August 31, 2021 – Quorum Announces Communicator Enhancements – New Digital Marketing capability will help dealerships Make More Money (M3) – Quorum announced that its Communicator best-of-class electronic messaging platform now delivers new Digital Marketing capabilities designed to help dealerships Make More Money (M3). “Communicator’s new enhancements make it easy to send digital marketing messages to our customers via text and email without using any third-party software,” stated Ken Wickstrom, Beyak Automotive Group’s Director of Finance. “When we ran our first promotion, the results were easy to track and we were impressed to see how quickly customers responded. This is just one more example of how Quorum continues to add value and help us to increase profitability.”
Annualized Software as a Service (SaaS) revenue increases a record 20% to $6.4 million
Annualized Business Development Centre (BDC) revenue increases 36% to $2.4 million
Q2 2021 recorded the highest Q2 2021 SaaS and BDC revenue quarter in Quorum’s history. SaaS and BDC revenue increased by 5% and 9% respectively over Q1 2021. These quarter-over-quarter increases represent annualized increases of 20% and 36% respectively.
RECENT INVESTOR EVENTS:
Small Cap Discoveries Forum (September 8, 2021) – In an update conversation with host Paul Andreola, I had the opportunity to speak to the factors driving demand for Quorum’s software products, provide comments on our Q2 2021 results and our main SaS and BDC revenues, speak to our SaaS MMRPU and our SaaS MMRPU TAM, and outline our significant growth opportunitites and growth runway. Click on the images below to watch the video and/or access the investor presentation:
Q2 2021 Quarter End Results Conference Call with Webcast (August 26, 2021):
11:00 am Mountain (1:00 pm Eastern) Audience Replay
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Thank you to all our customers, employees, vendors, contractors, lenders and shareholders for your continued support as we continue to deliver industry-leading software product solutions to the automotive dealership industry!