Viq Solutions Inc. · TSXV:VQS
Viq Solutions — H.C. Wainwright 23rd Annual Global Investment Conference 2021
21 slides from Viq Solutions's conference presentation, September 2021
Slide 1: Next Wave of Evidence Using AI
Next Wave of Evidence Using AI VIQ Solutions Inc. H.C. Wainwright 23rd Annual Global Investment Conference September 13 – 15, 2021 Corporate Presentation TSX: VQS NASDAQ: VQS 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 Solutions
VIQ Solutions 1,800 Clients We are a leading provider of 40M+ Pages of cloud-based artificial Documentation intelligence (AI) powered transcription workflow solutions 20M+ Audio that securely digitize Minutes information-intensive voice and video content 2
Slide 4: Investment highlights
Investment highlights Transformative impact creates value for transcription industry 2 An industry-leading, AI-powered, end-to-end 1 01 workflow taking the complexity out of multi- speaker documentation An Industry Highly Leader Focused 02 Singular focus on highly-secured evidence related agencies w
Slide 5: Macro trends driving demand for VIQ Solutions
Macro trends driving demand for VIQ Solutions Evolving Covid-19 Global market market market conditions impacts expansion Create an increase in the demand for Forced the requirements for Drives the demand for transparency digital content across all our industry expanded security outside of the and di
Slide 6: Harnessing automation to disrupt an outdated service model
Harnessing automation to disrupt an outdated service model Innovative technology automates manual processes to create high-quality, automated drafts Manual and Fragmented Automated and Secure not secure, lacks scale, low margins scalable, cloud-based, AI-powered 100% MANUAL 80% AUTOMATED machine lea
Slide 7: VIQ's proprietary suite of technology solutions
VIQ’s proprietary suite of technology solutions Intelligent automation is revolutionizing evidence AI-powered product offerings create value Differentiated capabilities Record video and audio evidence for single or multiple Capture speakers, onsite or remotely, and securely synchronize digital evide
Slide 8: AI to drives efficiency and value
AI to drives efficiency and value Intelligent workflow transforms highly complex evidentiary content Analytics Distribution Capture or upload AI Assessment content Final electronic transcript is routed to third party Analysis of the audio file AI Transformation Human in the Loop systems, or made ava
Slide 9: Diverse global client base of more than 1,800 clients
Diverse global client base of more than 1,800 clients H1 REVENUE BY GEOGRAPHY H1 REVENUE BY VERTICAL TOP 10 CLIENTS 1 U.S Insurance, Fortune 500 11% 2 Australia Government 23% 3 U.S Media 35% 4 U.K Government 30% 5 Australia Criminal Justice 59% 6 Australia Criminal Justice 21% 7 U.K Government 8 U.
Slide 10: 2021 U.S. total addressable market for VIQ markets is $10.5 billion
2021 U.S. total addressable market for VIQ markets is $10.5 billion Explosion of highly regulated evidentiary content U.S. Transcription Market by size 2019-2026 (USD Billion)1 2021 TAM by market segment (USD Billion) $16.0 $14.0 $1.6 $12.0 Criminal Justice and Government $10.0 $3.2 Legal $8.0 $1.5
Slide 11: Competitive landscape
Competitive landscape Unique focus on end-to-end workflow solution in our core verticals 10
Slide 12: Our competitive advantages
Our competitive advantages Innovation drives value for VIQ, clients and shareholders 01 02 Proprietary workflow technology Cybersecurity • AI-powered workflow creates actionable, on-demand • Awarded CJIS compliance seal supporting onsite documentation from a single data set that can be used and remo
Slide 13: Key pillars of our growth strategy
Key pillars of our growth strategy Drive financial performance Adoption of integrated solutions • Drive quality and quantity of revenues toward recurring aiAssist • A single provider for full capture, management, mining and revenue model with an incremental transition towards SaaS transformation of
Slide 14: Migration to SaaS hybrid pricing models
Migration to SaaS hybrid pricing models Drive stronger, long-term client relationships with predictable revenue Today • Transcription technology services are volume based • Spend can be unpredictable and tied to budgetary constraints or high-risk content • Billing flexible to tie to customer require
Slide 15: Successful M&A transactions to create shareholder value
Successful M&A transactions to create shareholder value Disciplined approached to M&A to achieve measurable results [1] Migrate [2] Consolidate Using our core technologies in our workflow gives us Integrate the organizational structure to the ability to quickly scale improve gross margin, reduce SG&
Slide 16: An acquisition pipeline strategy to support growth
An acquisition pipeline strategy to support growth Comprehensive strategy to consolidate fragmented transcription industry Increase “share of wallet” with Large volume of audio and existing clients particularly with video content to strengthen AI Fortune 500 learning Complementary products that Comp
Slide 17: Financial performance
Financial performance Drivers of revenue quality improvement TOTAL REVENUE GROSS MARGIN ADJUSTED EBITDA(1) • Shifting revenue base to higher quality, more predictable recurring SaaS and AI revenue model $32M • Achieving scale through productivity gains, 51% operational improvements and increased vol
Slide 18: Path to creating long-term shareholder value
Path to creating long-term shareholder value ✓ A global leader transforming the transcription industry • Disrupting outdated transcription service model • Ongoing development of AI and Machine Learning powered solutions ✓ Strong growth opportunities One-time Transcription and Services Recurring SaaS
Slide 19: Next Wave of Evidence Using AI
Next Wave of Evidence Using AI VIQ Solutions Inc. H.C. Wainwright 23rd Annual Global Investment Conference September 13 – 15, 2021 Corporate Presentation TSX: VQS NASDAQ: VQS 18
Slide 20: Capital Structure
Capital Structure As of August 18, 2021 TSX: C$168M (C$6.57/share) Market Capitalization NASDAQ: US$134M (US$5.23/share) Common shares outstanding 25,618,324 Fully diluted 27,591,376 Cash $12.4M1 Debt $13.6M (includes interest)1 1. As of June 30, 2021 19
Slide 21: Non-IFRS Measures
Non-IFRS Measures The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are used by management to provide additional insight into our performance and financial condition. We believe non-IFRS measures are an important part of the financial reporting process and are
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