VIQ Solutions Inc. · TSXV:VQS
VIQ Solutions — 12th Annual LD Micro Conference 2019
12 slides from VIQ Solutions's conference presentation, December 2019
Slide 1: Investor Presentation
Investor Presentation TSX Venture Exchange: VQS.V and OTCQX: VQSLF December 10th – 12th, 2019 12th Annual LD Micro Conference | Los Angeles CA 0
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements are generally identifiable by use of the words “believes,” “ma
Slide 3: VIQ at a Glance
VIQ at a Glance Company Highlights Business Overview $19 million USD 9M 2019 revenue ▪ VIQ is the global market leader in the capture, management and mining of representing 103% year-over-year growth sensitive digital evidence information Global customer base with over 1,280 ▪ Driving digital transf
Slide 4: VIQ's Unique Value
VIQ’s Unique Value • Well-managed, undervalued, high quality asset, early in its evolution. Currently in an explosive growth phase • Global digital transformation addressable market of $655 B where tech and AI investment are heading • First-mover, dominant player in key verticals, differentiating VI
Slide 5: Global Geographic Footprint and Diversification
Global Geographic Footprint and Diversification More than 1,280 clients served in over 25 countries North America Top 16 International Clients Segmentation of client base 1 U.S. Government Law Enforcement 2 U.S. Insurance, Fortune 500 3 U.S. Insurance, Fortune 500 40% of client base 4 U.K. Governmen
Slide 6: Global Digital Transformation Addressable Market Worth $665 Billion by 2023
Global Digital Transformation Addressable Market Worth $665 Billion by 2023 • Global market size is expected to grow from $290 B in 2018 to $655 B by 2023 at a CAGR of 18.1% • Major drivers include: • digitalizing organizational business functions to serve changing customer preferences and enhance o
Slide 7: $8.5 Billion U.S. Total Addressable Market
$8.5 Billion U.S. Total Addressable Market Growing to $10.6 Billion in 2021: Explosion of highly regulated evidentiary content # of Audio Average Length # of Transcribed # of Agencies Industry Vertical Recordable Total Addressable Market Per Recording Pages Per Year U.S. Events Growing to Law Enforc
Slide 8: Core Growth Strategy
Core Growth Strategy Drive Financial Performance Cross-Sell End-to-End Solution Set ▪ Drive quality and quantity of revenues toward recurring aiAssist ▪ Single source for customers’ full capture, management, mining and revenue model (9M 2019 revenue up 100% over 9M 2018 revenue) transformation needs
Slide 9: Core Growth Strategy in Early Action
Core Growth Strategy in Early Action $45 Total Revenue Gross Margin(2) Adjusted EBITDA(3) $40 $35 $30 44% $25 $19M 31% $20 $15 $12M $10 $5 $1.2M $0 -$5 -$2.4M (1) The Company's goal of ~$40 million in recurring revenue for 2020 is driven by both organic and inorganic (acquisitions) growth. (2) The C
Slide 10: Goal to Increase Gross Margin to ~65% by end of 2020
Goal to Increase Gross Margin to ~65% by end of 2020 Gross margin increase driven by client conversion workflow 9M 18 Q2 19 9M 19 Targeting 100% Targeting of clients by Number of clients 0 55 720 1,000 clients end of 2020 set up on NetScribe for 2019 ~65% gross margin goal Gross Margin 28% 40% 44% 9
Slide 11: Comparable Companies
Comparable Companies Equity Value / LTM Revenue¹ Transcription Industry Vertical AI-Enabled Businesses Service Providers Business Services Average: 2.2x Average: 7.2x Average: 8.0x Current VIQ Market Cap: 13.6x $19 million USD Implied VIQ Market Cap²: 11.5x $161 million USD 10.4x Overall Average: 8.
Slide 12: Thank You
Thank You Market leader driving World-class digital transformation leadership team through AI We welcome you to join us Executing growth Driving Enterprise strategy Value creation Increasing institutional investor base 11