QIS.v - Quorum Information Technologies

[wisowis]

Not a lot of life in this thread, but if anyone cares, these guys reported yesterday. SaaS revenue is up 5% in Q3 2020 vs. Q3 2019, down slightly for the year because of the 50% discounts they gave to customers in April-May to make sure they keep their customers.

 

Now at 1,045 rooftops, monthly recurring revenue per rooftop of $1,886 (vs. 1,020 rooftops @ $1,840 in Q3 2019)

 

Mark said on the call that they have installations of Xsellerator booked at their maximum of 3 per month until February.

Also mentioned they are involved with 2 new OEM integrations. Said on the call can't specify which, but this is in the Q3 report:

 

Adding Honda and Mazda increases Quorum’s XSellerator ERP available Canadian TAM to 1,814

dealerships which equates to an increase of 64% from 1,109, opening up 22% more of the market.

Additionally, the percentage of Canadian TAM increases to 56% from the current 34%.

 

Full MD&A for Q3 available here:

 

http://quoruminformationsystems.com/wp-content/uploads/securepdfs/2020/11/Quorum-Q3-FY2020-MDA-FINAL.pdf

[KJP]

I've been waiting for something like this to happen:  https://money.tmx.com/en/quote/QIS/news/6929669651789608/Quorum_to_start_deploying_XSellerator_dealerships_on_new_cloud_offering_on_Microsoft_Azure

 

Historically, management has suggested that customers did not want a cloud-based solution.  As a result, installing XSellerator imposed a significant upfront cost to the dealership for on-premise servers and installation, significant financial expense to Quorum, which did not charge customers the full cost the installation (thus the negative gross margins on what has variously been called "installation" or "one-time" revenue), and may have slowed growth due to the limited number of people the company had to do the on-premise installations.  A cloud-based product ought to help address both the upfront cost to Quorum and the dealerships of switching to XSellerator and the apparent bottleneck caused by limited on-premise installation capacity. 

[wisowis]

New interview with Maury Marks:

 

On the latest news that Neil McDonnell is the new chair of the BoD:

 

"...some of our largest investors have done really with Neil through QHR..."

 

Shoutout to Southpaw!