Sylogist (TSE:SYZ) Announces Earnings Results

Sylogist (TSE:SYZ) released its earnings results on Tuesday. The company reported C($0.16) earnings per share for the quarter, FiscalAI reports. The company had revenue of C$14.74 million for the quarter. Sylogist had a negative net margin of 7.48% and a negative return on equity of 13.97%.

Here are the key takeaways from Sylogist’s conference call:

• Sylogist said its SaaS transformation is showing early progress, with recurring revenue up to 75% of total revenue, SaaS subscription revenue up 5% year over year, and recurring gross margin improving to about 71%.
• Total revenue fell to CAD 14.7 million from CAD 16.3 million a year ago, mainly because project services revenue declined as the company shifts toward partner-led delivery.
• SaaS NRR weakened to 98% from 108% last year, which management attributed largely to churn in legacy customers rather than core SaaS accounts.
• Management highlighted growing momentum in key products, especially VSS, GovERP, and SylogistEd, while saying product-market fit is close but that they are not yet ready to ramp sales spending aggressively.
• The company said the Texas VSS rollout is 92% complete and remains on track for completion by the end of H1, with SaaS revenue recognition expected to accelerate after the September 1 renewal milestone.

Sylogist Price Performance

Shares of Sylogist stock opened at C$3.24 on Thursday. The company has a market capitalization of C$75.48 million, a price-to-earnings ratio of -16.20 and a beta of 0.33. The company has a quick ratio of 0.51, a current ratio of 0.82 and a debt-to-equity ratio of 61.28. The stock’s 50-day simple moving average is C$3.67 and its 200-day simple moving average is C$4.68. Sylogist has a 52 week low of C$3.03 and a 52 week high of C$9.99.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Ventum Financial cut Sylogist from a “buy” rating to a “hold” rating and lowered their price objective for the company from C$7.00 to C$4.75 in a research report on Friday, March 20th. Stifel Nicolaus cut shares of Sylogist from a “buy” rating to a “hold” rating and decreased their target price for the stock from C$9.00 to C$4.75 in a research note on Thursday, February 12th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of C$4.75.

Sylogist Company Profile

Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers across the government, nonprofit, and education market segments. The Company’s stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, inclusive of full financial statements together with Management’s Discussion and Analysis, can be found at sedarplus.ca or at sylogist.com.