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Q4 Inc. Announces Fourth Quarter and Full Year 2021 Results

Strong revenue growth, margin expansion, and an expanded product suite yield healthy 2021 results

TORONTO–(BUSINESS WIRE)–Q4 Inc. (TSX:QFOR) (“Q4” or the “Company”), a leading capital markets communications platform, today announced its financial results for the three months and fiscal year ended December 31, 2021. All amounts are expressed in US dollars unless otherwise stated.

“2021 was an exciting year for the business. We are thrilled to post an annual revenue growth rate of 37% along with a fourth-quarter gross margin at just under 60%, up from 52% a year ago,” said Darrell Heaps, CEO. “We continue to see increased demand for our innovative product suite, providing us with a strong foundation from which to execute against our vision to transform the way public companies, investors and investment banks connect, communicate and engage. Our strong organic growth, combined with strategic M&A opportunities and scale-enhancing operational investments position us extremely well to deliver on our strategy, achieve superior growth and advance along our path to profitability, irrespective of the broader market conditions.”

Fourth Quarter 2021 Financial Highlights

  • Delivered revenue of $13.8 million, an increase of 24.2% from the comparative period in the prior year
  • Drove annual recurring revenue1 as of December 31, 2021, to $51.9 million, increasing 21.8% year over year
  • Expanded gross margin by 768 basis points year over year to 59.6%
  • Net loss of $6.3 million, or $0.20 per share
  • Adjusted EBITDA2 loss of $3.4 million

Annual 2021 Financial Highlights

  • Delivered revenue of $55.4 million, an increase of 37.2% from the prior year
  • Expanded gross margin by 335 basis points year over year to 57.0%
  • Net loss of $26.9 million, or $1.71 per share
  • Adjusted EBITDA2 loss of $13.6 million

Operational Highlights

  • Completed 2021 with 2,656 total customers (including customers in the Company’s backlog) compared to 2,306 customers from the prior year-end
  • Focused sales expansion efforts resulted in an increase of the number of products existing customers are using, which in turn drove improved retention rates and increased average revenue per account
  • Launched corporate earnings webcasting platform, delivering over 600 earnings events to date
  • Released Capital Markets Events platform with expanded functionality, designed to meet the virtual, hybrid and in-person conference and events needs of both our corporate and sell-side customers
  • Introduced ESG product offerings, further integrating the investor communications efforts of our corporate customers
  • Expanded Board of Directors with the addition of Julie Silcock, and named Colleen Johnston as the Board Chair
  • Completed successful initial public offering (“IPO”) on October 29, 2021, raising gross proceeds of approximately C$100 million to fund our strategic initiatives