VIQ Solutions Reports Third Quarter Results - Seite 2

• Revenue of $24.0 million increased 26% compared to $19.0 million in revenue during the same period in the prior year. The increase in revenue of $5.0 million included $7.3 million related to acquisitions and was partially offset by a $2.3 million downward exposure from temporary COVID-19 shutdowns during the second and third quarter 2020 on net organic growth;
• Generated 72% of revenue in the United States, 26% in Australia, and 2% in EMEA and Canada;
• Gross profit of $13.2 million represented 55.1% of revenue versus $8.4 million, or 44.1% of revenue, in the comparable prior year period. Gross profit in 2020 was favorably impacted by $2.8 million in COVID-19 wage subsidies;
• Adjusted EBITDA of $4.2 million increased 251% versus Adjusted EBITDA of $1.2 million the prior year. The $3.0 million increase in Adjusted EBITDA was driven by higher revenues, and productivity gains in transcription services as well as COVID-19 wage subsidies received during the second and third quarter 2020 and was partially offset by higher SG&A expenses.

Earlier COVID-19 restrictions, mainly in courts, law enforcement and insurance verticals, temporarily caused delays in customer migrations and new rollouts. Ongoing rollouts have restarted as COVID-19 restrictions are incrementally lifted particularly in Australia and the UK. The Company estimates approximately $2.5 to $3.4 million of previously planned 2020 revenues are delayed to 2021.

Drives Productivity Gains

As the Company completes the first phase of its migrations to NetScribe, powered by aiAssist, by December 31, the Company has pivoted to enhancing technologies driving deeper improvements to industry-specific AI. The learnings from these migrations, combined with the rich depth of content gained in key sectors, provide the foundation to accelerate productivity enhancements to our transcription workflows and improve the end product delivered to customers where the drive for faster and more accurate draft content is essential to competitive positioning.

"We have operationalized the integration of our first three acquisitions and the operational gains will be maximized in Q1, 2021,” said Susan Sumner, Chief Operating Officer. "This successful migration has proven to our client base that the migration to our new technologies and our new ownership structure is a positive change. To that end, we invested in acquisitions that helped to support the marquis standards we established for VIQ. In 2021 we will invest further in supporting the awareness of both the brand and attributes associated with VIQ solutions in our overall expansion strategy."