Sylogist (TSE:SYZ) Releases Quarterly Earnings Results

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

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 Stock Performance

Shares of SYZ stock opened at C$3.30 on Wednesday. The company has a current ratio of 0.82, a quick ratio of 0.51 and a debt-to-equity ratio of 61.28. The firm has a fifty day moving average price of C$3.68 and a 200 day moving average price of C$4.70. The company has a market cap of C$76.87 million, a P/E ratio of -16.50 and a beta of 0.33. Sylogist has a 12 month low of C$3.03 and a 12 month high of C$9.99.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Ventum Financial downgraded shares of Sylogist from a “buy” rating to a “hold” rating and dropped their price target for the stock from C$7.00 to C$4.75 in a research note on Friday, March 20th. Stifel Nicolaus downgraded shares of Sylogist from a “buy” rating to a “hold” rating and dropped their price target 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 data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of C$4.75.

About Sylogist

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.