This summary was created by AI, based on 1 opinions in the last 12 months.
VIQ Solutions (VQS-X) has shown positive results in its recent financial performance, with a 10% year-over-year increase in revenue, a significant improvement in net loss, and an improved adjusted EBITDA. Experts have noted the company's increased demand and profitability for its AI solutions, although they raise concerns about the sustainability of this growth due to the company's small market cap. Overall, the company's solid performance is positively acknowledged, but its size poses a risk to sustained growth.
VQS’s growth has accelerated in recent years driven mainly through acquisitions by issuing shares and it is now trading at 0.5x times' Price/Book. In the 4Q, VQS’s revenue grew 32% to $10.2M, missing the estimates of $10.7M and EPS is -$0.16 missing estimates of -$0.08. The balance sheet is quite leveraged, with net debt of $8M, compared to the trailing twelve-month cash flow of -$8.2M, and cash flow declined compared to $3.4M last year. Based on consensus estimates, sales are expected to grow by around 7% in the next two years.
The company has been growing mainly through share issuance to do acquisitions which we remain cautious on due to the risk of dilution. Also, the company is currently unprofitable, and cash flow is negative. We think there are better opportunities in the market. Overall, we consider the name to be highly volatile, we would be mindful of its size risks. Also, we would prefer to wait until profitability has been achieved.
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Their specialty is secure recordings of audio and conversations for courts. They continue to do a lot of pilot projects. Earnings results have not yet shown up.
They were in the court recording technology area, but now morphed it into all kinds of video data, such as police departments. It had a nice turnaround and they are generating nice cash flow and are a pretty good earnings story.
Automating digital recordings of video. The new management team has set some great plans for going forward.
VIQ Solutions is a Canadian stock, trading under the symbol VQS-X on the TSX Venture Exchange (VQS-CV). It is usually referred to as TSXV:VQS or VQS-X
In the last year, 1 stock analyst published opinions about VQS-X. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for VIQ Solutions.
VIQ Solutions was recommended as a Top Pick by on . Read the latest stock experts ratings for VIQ Solutions.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered VIQ Solutions In the last year. It is a trending stock that is worth watching.
On 2021-01-20, VIQ Solutions (VQS-X) stock closed at a price of $7.1.
VQS recorded Revenue of $11.6M increasing 10% year-over-year. Net loss was $0.6M which improved from a loss of $3.6M in the year prior. Adjusted EBITDA of $0.8M improved by $1.7M from the year prior. The company is seeing increased demand and profitability for its AI solution offerings albeit at a small scale. The results are solid but the company is so tiny at $12.65M in market cap, that we are skeptical if this can be sustained, in addition to the general size risk here.
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