SYLOGIST Reports Fourth Quarter and Full Year 2024 Results

Strong Q4 SaaS ARR Growth at 17% and Full Year Recurring Revenue at 66% of Total Revenue

Q4 2024 Highlights¹

				Revenue (in $ millions)
SaaS Subscription				Recurring				Total
Reported		Y/Y growth		Reported		Y/Y growth		Reported		Y/Y growth
$7.6		14.7%		$11.0		7.6%		$15.3		(1.3)%

• SaaS ARR up 17% Y/Y to $31.1 million;
• ARR up 9% Y/Y to $44.9 million;
• Recurring revenue as a percentage of total revenue at 72%;
• Bookings up 37% Q/Q to $11.9 million; and
• Adjusted EBITDA Margin of 21.1% or $3.2 million.
  

Year End 2024 Highlights

				Revenue (in $ millions)
SaaS Subscription				Recurring				Total
Reported		Y/Y growth		Reported		Y/Y growth		Reported		Y/Y growth
$29.4		12.6%		$43.4		7.8%		$65.6		0.1%

• SaaS NRR of 108%;
• Bookings up 56% Y/Y;
• Recurring revenue as a percentage of total revenue at 66%; and
• Adjusted EBITDA Margin of 24.7% or $16.2 million.

/EIN News/ -- CALGARY, Alberta, March 13, 2025 (GLOBE NEWSWIRE) -- March 13, 2025 - Sylogist Ltd. (TSX: SYZ) ("Sylogist" or the "Company"), a leading public sector SaaS company, today announced its results for the fourth quarter and the full year ended December 31, 2024.

"Our Q4 performance reaffirms the success of our transition to a SaaS-driven enterprise," said Bill Wood, President & CEO of Sylogist. "We are pleased with our go-to-market execution and the momentum we’ve built. While transitioning project service revenue—such as new implementations and customer upgrades—to partners may temporarily impact top-line growth, it is a strategic move designed to enhance long-term operating leverage and scalability. We are confident that replacing this handed-off revenue with high-margin SaaS revenue will drive even greater value for our shareholders.

We’re also proud to report a 20% year-over-year increase in our Net Promoter Score or NPS — from an already strong 51 in 2023 to 62 this year. This significant improvement reflects the trust we’ve built with our customers and validates our commitment to delivering solutions that drive real value, reinforcing our competitive differentiation in the market."

^{1 Growth comparisons for Q4 2024 compared to Q4 2023 have been adjusted to reflect the divestiture of the Managed IT Services division.}

Conference Call Details

The Company will host a conference call at 8:30 AM Eastern Time on March 13, 2025. A replay of the call will be archived in the investor section of the Company’s website.

Date: Thursday, March 13, 2025
Time: 8:30 a.m. EDT
Participant Toll-Free Dial-In Number: + 1-844-752-3805
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=sXr9662v
Please dial-in before the start of the conference to secure a line and avoid delays.

About Sylogist
Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers globally across the government, non-profit, 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 www.sedarplus.ca or at www.sylogist.com.

Forward-looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities legislation. Although the forward-looking information is based on what the Company believes are reasonable assumptions, current expectations, and estimates, investors are cautioned from placing undue reliance on this information since actual results may vary from the forward-looking information. Forward-looking information may be identified by the use of forward-looking terminology such as “believe”, “assume”, “intend”, “may”, “will”, “expect”, “estimate”, “anticipate”, “continue”, “could”, “should”, “can”, “outlook” or similar terms, variations of those terms or the negative of those terms, and the use of the conditional tense as well as similar expressions.

Such forward-looking information that is not historical fact, including statements based on management’s beliefs and assumptions, cannot be considered as guarantees of future performance. They are subject to a number of risks and uncertainties, including but not limited to future economic conditions, the markets that the Company serves, the actions of competitors, major new technological trends, and other factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Company undertakes no obligation to update publicly any forward-looking information whether because of new information, future events or otherwise other than as required by applicable legislation. Important risk factors that may affect these expectations include, but are not limited to, the factors described under the section “Risks and Uncertainties” found in the Company’s Annual Information Form for the fiscal period ended December 31, 2023, and in the Management’s Discussion and Analysis for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, and for the year ended December 31, 2024 and other documents available on the Company’s profile at www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive.

Actual results and developments may differ, in some cases materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: (i) competitive environment; (ii) operating risks; (iii) the Company’s management and employees; (iv) capital investment by the Company’s customers; (v) customer project implementations; (vi) liquidity; (vii) current global financial and geopolitical conditions; (viii) implementation of the Company’s commercial strategic plan; (ix) access to credit sources and the terms of such financing; (x) potential product liabilities and other lawsuits to which the Company may be subject; (xi) additional financing and dilution; (xii) market liquidity of the Company’s common shares; (xiii) development of new products; (xiv) intellectual property and other proprietary rights; (xv) acquisition and expansion; (xvi) foreign currency; (xvii) interest rates; (xviii) technology and regulatory changes; (xix) internal information technology infrastructure and applications and (xx) cyber security. Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

Non-IFRS Financial Measures

This news release refers to certain non-IFRS measures, namely Bookings, Adjusted EBITDA, Adjusted EBITDA Margin, Annualized Recurring Revenue (“ARR”), Software as a Service (“SaaS”) ARR, Net Promoter Score (“NPS”), and SaaS Net Revenue Retention (“SaaS NRR”). These non-IFRS measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures reported or calculated by other companies. These measures are provided as additional information to complement measures under IFRS by providing further understanding of the Company’s expected results of operations from management’s perspective. Accordingly, such measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.

• Bookings refer to the total value of customer accepted contracts during the reporting period. This includes SaaS bookings (the value of SaaS contracts for the entire contracted term) and the project services bookings (the full value of contracted project services).
• Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation, foreign exchange gains/losses and the impact of acquisition and restructuring.
• Adjusted EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue.
• ARR is defined as the annualized value of contractually committed SaaS and maintenance and support services. This quantification assumes that customers will renew the contractual commitment on a periodic basis as they come up for renewal unless the customer has notified the Company of its intention to cancel.
• SaaS ARR refers to ARR attributable to SaaS customer contracts.
• SaaS NRR refers to the percentage of beginning of period ARR retained over a given 12-month period inclusive of the impact of contractions, losses and the impact of any additional expansion revenues from customer upgrades within the existing customer base. The Company’s calculation of SaaS NRR includes the impact of customers converting from its maintenance and support offerings to its SaaS offerings.
• NPS is a customer “experience” metric that measures the willingness of customers to recommend a company’s products or services to others.
  

Bookings, Adjusted EBITDA, Adjusted EBITDA Margin, ARR, SaaS ARR, and SaaS NRR are provided to investors as alternative methods for assessing the Company’s operating results in a manner that is focused on the Company’s ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be construed as alternatives to profit or cash flow from operating activities, determined in accordance with IFRS as an indicator of the Company’s performance.

For further information regarding non-IFRS measures used by the Company, please refer to a copy of the Company’s Annual Financial Statements and Management’s Discussion and Analysis for the year ended December 31, 2024, copies of which are available on Sylogist's SEDAR profile at www.sedarplus.ca.

Currency and Rounding
All amounts in this Press Release are expressed in millions of Canadian dollars unless otherwise stated. All percentage variations expressed herein have been calculated based on variations resulting from numbers expressed in millions. Any potential differences from similarly calculated percentages in the Company’s Financial Statements and Management’s Discussion and Analysis are due to rounding and are nonmaterial.

For further information contact:
Sujeet Kini, Chief Financial Officer
Sylogist Ltd.

ir@sylogist.com
(416) 491-8004