Bill Wood
- Nov 9, 2023

Sylogist Reports Strong Third Quarter 2023 Results

CALGARY - November 9, 2023 - Sylogist Ltd. (TSX: SYZ) ("Sylogist" or the "Company"), a leading public sector SaaS company, today announced its third quarter financial results for the three months ending September 30, 2023.

Third Quarter 2023 Financial Highlights:

· Record revenue of $16.8 million, up 18% Y/Y (16% CC);

· SaaS ARR growth of 26% Y/Y to $27.7 million;

· Recurring revenue growth of 12% Y/Y;

· SaaS NRR of 108%;

· Gross profit margin of 61%;

· Adjusted EBITDA margin of 26% or $4.4 million;

· Bookings of $7.7 million, up 26% Q/Q;

· Backlog of $32.2 million, up 12% Q/Q;

· $4 million repayment on revolving credit facility

“Our strong Q3 performance is further evidence of our profitable organic growth acceleration as a leading SaaS provider to the public sector,” commented Bill Wood, CEO of Sylogist. “Looking ahead, we see continuing growth with leverage, particularly in the back half of 2024 as our SaaS revenues and partner strategy magnify.”

Sylogist’s Board of Directors approved a dividend of $0.01 per share for shareholders of record on November 30, 2023 (ex-dividend November 29, 2023) to be paid on December 13, 2023. Such dividend is treated as an “eligible dividend” under the Income Tax Act (Canada).

The Company’s Board of Directors has approved the renewal of its normal course issuer bid (“NCIB”) when it expires on November 16, 2023, providing optionality to its capital allocation strategy. The NCIB renewal remains subject to TSX approval.

Conference Call Details

The Company will host a conference call at 8:30 AM Eastern Time on November 9, 2023. Bill Wood, President and Chief Executive Officer, and Sujeet Kini, Chief Financial Officer, will present the Company's financial results, discuss performance as well as outlook for the remainder of 2023 and beyond. Q & A will follow, as time allows, and a replay of the call will be archived in the investor section of the Company’s website.

Date: Thursday, November 9, 2023 Time: 8:30 a.m. EDT Participant Toll-Free Dial-In Number: + 1-800-319-4610 Participant Dial-In Number: +1-416-915-3239

Please dial-in before the start of the conference to secure a line and avoid delays.