Q2 2024 Quorum Information Technologies Inc Earnings Call Transcript
Key Points
- SaaS revenue in Q2 2024 grew by 2% compared to Q2 2023, with total revenue remaining steady at $10 million.
- Adjusted EBITDA increased by 18% to $2 million, marking three consecutive quarters of adjusted EBITDA margin of 20% or higher.
- Gross margin increased to $9.9 million or 50% of revenue, showing improved operational efficiencies.
- Total operating expenses decreased by 9% in Q2 2024, reflecting effective cost management.
- The company reduced its BDC Capital Facility debt from $8.3 million to $5.3 million, translating into interest savings of approximately $300,000 per year.
- Net income for Q2 2024 decreased by $1.8 million compared to Q2 2023, primarily due to a gain on bargain purchase recognized in the prior year.
- BDC revenue decreased by 11% due to temporary staffing constraints.
- SaaS gross margin slightly decreased to 67% from 68%, indicating some pressure on profitability.
- Customer rooftop count declined marginally by 0.2%, showing a slight reduction in customer base.
- The company faced challenges with its cloud offering, requiring continuous improvements and customer support.
Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Quorum Information Technologies Inc. Second Quarter 2024 Results Conference Call. (Operator Instructions)
I would now like to turn the conference over to Maury Marks, President and CEO. You may begin.
Thank you, Jeannie. Hello, everybody, and thank you for attending Quorum Information Technologies Q2 2024 Results Conference Call and concurrent webcast today. Joining me is our Chief Financial Officer, Marilyn Bown.
Quorum is a North American software and services company providing essential enterprise solutions that automotive dealerships and original equipment manufacturers or OEMs rely on for their operations. Quorum has a uniquely integrated product suite of 13 essential software solutions that are used in whole or in part by 1,414 dealership customers across North America. At least one of Quorum's
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