VIQ Solutions Inc. · TSXV:VQS
VIQ Solutions — 24th Annual Needham Growth Conference (January 2022)
25 slides from VIQ Solutions's conference presentation, January 2022
Slide 1: Next Wave of Evidence Using AI
Next Wave of Evidence Using AI VIQ Solutions Inc. January 2022 24th Annual Needham Growth Conference TSX: VQS NASDAQ: VQS 0
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Other Disclaimers
Cautionary Note Regarding Forward-Looking Statements and Other Disclaimers This presentation contains “forward-looking statements” or “forward-looking information” within the meaning of applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). Forward-looking stateme
Slide 3: VIQ Solutions
VIQ Solutions 2,200+ Clients 42M+ Pages of We are a leading provider of Documentation cloud-based artificial intelligence (AI) powered transcription workflow solutions 20M+ Audio that securely digitize Minutes information-intensive voice and video content 2 Statistics above are approximate
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 Increased demand for digital content Forced the requirement for expanded Drives the demand for transparency and across all VIQ industry segments security outside of the “controlle
Slide 6: Harnessing automation to disrupt an outdated service model
Harnessing automation to disrupt an outdated service model Innovative technology automates manual processes to create high-quality, automated drafts Manual and Fragmented Automated and Secure not secure,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: Top industry trends driving transformation
Top industry trends driving transformation Rapid increase in volume of evidentiary content Legal & Courts • Rapid movement to remote proceedings Insurance • Increased adoption of digital capture • Digital disruption is a given and tech- infused organizational processes will technologies and alternat
Slide 8: 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 9: 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 10: Diverse global client base of more than 2,200 clients
Diverse global client base of more than 2,200 clients Acquisitions strategically drive scaling and gross margin improvements 9M 2021 FY 2022E REVENUE BY GEOGRAPHY 8% 17% United States 33% Australia 30% 62% EMEA & Canada 50% 11% 12% REVENUE BY VERTICAL 22% 22% 12% Criminal Justice Legal (Courts) Insu
Slide 11: 2023 U.S. Total Addressable Market (TAM) for VIQ markets is $12 billion
2023 U.S. Total Addressable Market (TAM) for VIQ markets is $12 billion Explosion of highly regulated evidentiary content U.S. Transcription Market by size 2019-2026 (USD Billion)1 2023 TAM by market segment (USD Billion)1 $16.0 $14.0 $1.8 $12.0 Criminal Justice and Government $10.0 $3.6 Legal & Cou
Slide 12: Competitive landscape
Competitive landscape Unique focus on end-to-end workflow solution in our core verticals Capture Technology VIQ’s Comprehensive Solution Transcription Services Dictate Express, SpeakWrite, Nuance, FTR, JAVS, Liberty Verbit, eScribers, Allegis, Veritext, Rev North America North America Indico, FTR, L
Slide 13: 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 Criminal Justice Information Services (CJIS) documentation from a single data set that can be used co
Slide 14: 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 15: Migration to SaaS hybrid solutions
Migration to SaaS hybrid solutions Drive stronger, long-term client relationships with predictable revenue Drivers • Deployment of technology and solutions that provide for highly predictable monthly revenue • Bundled solutions utilizing SaaS pricing to increase Revenue Per User • Evolution of solut
Slide 16: Completed two accretive acquisitions in Q4 2021
Completed two accretive acquisitions in Q4 2021 The Transcription Agency (“TTA”) • Leading supplier of secure outsourced transcription services to clients in private and public sectors throughout the United Kingdom • Expected to add ~$2 million in annualized revenue • Acquired for $1.7 million • Pos
Slide 17: 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 18: 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 19: Proven execution, utilizing a repeatable playbook
Proven execution, utilizing a repeatable playbook Foundation for driving results Technology Migrations and integration Productivity and efficiency • AI workflow platform designed for • Deeply embedded clients, independent • Improved key productivity throughput complex, multi-speaker, non- medical te
Slide 20: Financial performance
Financial performance Drivers of revenue quality improvement TOTAL REVENUE GROSS MARGIN ADJUSTED EBITDA(1) $32M • Shifting revenue base to higher quality, more predictable recurring $25M $24M 51% SaaS and AI revenue model 49% $5M • Achieving scale through productivity gains, operational improvements
Slide 21: 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 22: Appendix
VIQ Solutions Inc. APPENDIX www.viqsolutions.com 21
Slide 23: Experienced Leadership Team
Experienced Leadership Team Sebastien Paré Susan Sumner Alexie Edwards Vahram Sukyas CEO President & COO CFO CTO 25+ years of experience 30 years of executive leadership, 20+ years of experience in finance and 20+ years technology industry experience in digital content and secure enterprise consulti
Slide 24: Capital Structure
Capital Structure As of September 30, 2021 TSX: C$111M (C$3.72/share) Market Capitalization Nasdaq: $88M U.S. ($2.96/share) Common shares outstanding 29,878,618 Fully diluted (Excluding warrants) 31,819,170 Cash $26.0M Debt $13.2M (includes interest) Warrants 2,117,6471 1. Exercise price of US$5.00
Slide 25: Non-IFRS Measures
Non-IFRS Measures The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). This presentation makes reference to certain non-IFRS financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning p
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