Sylogist Ltd
TSX:SYZ
Sylogist Ltd
Sylogist Ltd. is a software company, which engages in providing enterprise resource planning solutions, including fund accounting, grant management, and payroll to public service organizations. The company is headquartered in Calgary, Alberta and currently employs 100 full-time employees. The firm operates through Public Sector segment. The Public Sector segment operates in principle geographical areas, which includes Canada, the United States and United Kingdom. The Company’s service customers include Local Governments, Non-Profit Organizations (NPO), Non-Governmental Organizations (NGO), Education Boards and Districts, and Defense and Safety Contractors. The company operates Edmonton, Alberta, Newmarket, Ontario, Atlanta, Georgia, Littleton, Colorado, Washington, Shawnee, Oklahoma, Oxford and Oxfordshire.
Sylogist Ltd. is a software company, which engages in providing enterprise resource planning solutions, including fund accounting, grant management, and payroll to public service organizations. The company is headquartered in Calgary, Alberta and currently employs 100 full-time employees. The firm operates through Public Sector segment. The Public Sector segment operates in principle geographical areas, which includes Canada, the United States and United Kingdom. The Company’s service customers include Local Governments, Non-Profit Organizations (NPO), Non-Governmental Organizations (NGO), Education Boards and Districts, and Defense and Safety Contractors. The company operates Edmonton, Alberta, Newmarket, Ontario, Atlanta, Georgia, Littleton, Colorado, Washington, Shawnee, Oklahoma, Oxford and Oxfordshire.
SaaS Transformation: Sylogist's transformation to a SaaS company continues, with SaaS revenue now making up 73% of recurring revenue, up from 68% last year.
Revenue & Margins: Q3 revenue was $13.9 million, with a stable gross margin of 60%. SaaS ARR grew 15% year-over-year to $33.6 million.
Bookings & Pipeline: Q3 bookings were $5.9 million in total contract value, reflecting quarter-to-quarter lumpiness, but the sales pipeline is said to be expanding and gaining balance across strategic markets.
Churn & Baseline: Increased churn in the Mission segment was acknowledged and is described as establishing a new baseline going forward.
Microsoft Partnership: Sylogist achieved managed software development company status with Microsoft, increasing visibility and collaboration.
Cash Position: Cash ended the quarter at $14.1 million, with approximately $10 million in free cash flow generated during Q3, aligning with seasonal expectations.
Guidance Reaffirmed: Management anticipates SaaS ARR growth in the low teens percent, a gross margin of about 60%, and adjusted EBITDA margin in the high teens for the full year.
