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Q4 Inc. Announces Third Quarter 2021 Results

Company delivers strong revenue growth and significant gross margin expansion

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- and nine-month periods ended September 30, 2021. All amounts are expressed in US dollars unless otherwise stated.

Q4’s capital markets communication platform connects public companies, the buy-side and sell-side across their most critical workflows, namely investor relations, corporate access, research and deal management. The Company powers the capital markets investor relations programs of 2,600 public companies (including customers in the Company’s backlog), including more than 50% of the S&P 500. Q4 also hosts over 13 million investors and sell-side analysts on its platform monthly to learn more about the companies in which they are invested. With this breadth of scale, Q4 has amassed vast amounts of data yielding proprietary insights into the behavior of capital markets participants.

Third Quarter 2021 Financial Highlights

  • Delivered revenue of $13.0 million, an increase of 30% from the comparative period in the prior year
  • Drove annual recurring revenue as of September 30, 2021 to $50.3 million, increasing 24.8% year over year
  • Expanded gross profit margins by 380 basis points year over year to 56.9%
  • Adjusted EBITDA2 loss of $3.3 million
  • Net loss of $4.7 million, or $0.43 per share
  • Positive cash flow generated from operating activities of $2.0 million for the three months ended September 30, 2021

Third Quarter and Subsequent to Quarter-End Operational Highlights

  • Added 145 new clients in the quarter, now totaling 2,600 customers (including customers in the Company’s backlog) compared to 2,234 customers from the comparative period in the prior year
  • Completed successful initial public offering (“IPO”) on October 29, 2021, raising gross proceeds of approximately C$100 million to fund our strategic initiatives
  • Launched several new products and services including the Q4 Capital Markets Event Platform for Investor conferences; Q4 Virtual Events Platform for Earnings; and, ESG suite of offerings
  • Renewed 3-year partnership with New York Stock Exchange and integrated Business Wire’s innovative NX technology into the Q4 platform

“We are very pleased with our third-quarter results,” said Darrell Heaps, CEO of Q4. “Making our debut as a publicly-traded company just a few weeks ago, I’m especially proud of where the Company stands today. The momentum we experienced in the third quarter across the business is the result of a rapidly growing base of corporate and investment banking customers who continue to increase the number of products they buy from us, as we continue to bring new and innovative products to market. Our revenue growth, combined with our gross margin expansion and a very healthy balance sheet, leave us well-positioned to aggressively pursue our mission to become the largest capital markets communications platform in the world. Finally, I would like to express my sincere thanks to my tireless team, Q4’s loyal customers and our board for their unflagging support. We look forward to continuing to drive shareholder value over the coming quarters.”