Viq Solutions Inc. · TSXV:VQS
Viq Solutions — Investor Presentation (November 2022)
25 slides from Viq Solutions's investor presentation, Nov 9, 2022
Slide 1: Intelligence at Work – VIQ Solutions Inc. Corporate Presentation
Intelligence at Work VIQ Solutions Inc. November 9, 2022 Corporate Presentation 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
4,155+ Clients VIQ Solutions 42M+ Pages of Documentation We are a leading provider of Produced From cloud-based artificial Audio Capture intelligence (AI) powered transcription workflow 20M+ Audio solutions that securely Minutes Captured digitize information-intensive Using Our Technology voice and
Slide 4: Investment highlights
Investment highlights Transformative impact creates value for transcription industry 1 2 01 An industry-leading, AI-powered, end-to- end workflow taking the complexity out of multi-speaker documentation Singular focus on highly-secured evidence 02 An Industry Highly Leader Focused 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 Drives the demand for transparency across all VIQ industry segments expanded security outside of the and digitizati
Slide 6: Harnessing automation to disrupt an outdated service model
Harnessing automation to disrupt an outdated service model Innovative technology automates manual processes to create high-quality, automated drafts Manual and Fragmented Automated and Secure not secure,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 Insurance proceedings • Digital disruption is a given and tech- infused organizational processes will • Increased adoption of digital capture become more commonplace t
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 Analysis of the audio file is routed to third party characteristics to identify AI Transformation Human in t
Slide 10: Diverse global client base of more than 4,155 clients
Diverse global client base of more than 4,155 clients Mix shift toward Legal (Courts) vertical that has the highest productivity gains FY 2021 FY 2022E 7% REVENUE BY GEOGRAPHY 8% United States 38 Australia % EMEA & Canada 31% 61% 55 % 12% 13% REVENUE BY VERTICAL 21% 22 % 15% Criminal Justice Legal (
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 documentation from a single data set that can be used (CJIS) 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 • A single provider for full capture, management, mining and aiAssist revenue model with an incremental transition transformation of our existing
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 recurring revenue stream • Bundled solutions utilizing SaaS pricing to increase Revenue Per User • Evolution
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: 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 Integrate the organizational workflow gives us the structure to improve gross margin, ability to quickly scale reduce SG&
Slide 18: Financial performance and goals
Financial performance and goals Drivers of revenue quality TOTAL REVENUE GROSS MARGIN improvement • Shifting revenue base to higher quality, more predictable recurring revenue $46M -$47M model 51% 48% - 48 51% $36M 48% • Achieving scale through productivity $32M $31M % gains, operational improvement
Slide 19: Drivers of 9M 2022 gross margin improvement
Drivers of 9M 2022 gross margin improvement Increase of 120 basis points excluding impact of COVID-19 wage subsidies1 • Migration of technology services to aiAssist and NetScribe technologies • Proven efficiency gains of the labor force in using those Goal technologies enabled a reduction in rates p
Slide 20: 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 • Pursing organic growth and accretive M&A in larg
Slide 21: Appendix
APPENDIX 20
Slide 22: Revenue Trend & 2022 Goal of between $46M - $47M
Revenue Trend & 2022 Goal of between $46M - $47M(1) Revenue Trend USD in Millions Goal $50.0 $46M - $47M $45.0 $40.0 $35.0 $31.8 $31.0 $30.0 $25.1 $25.0 $20.0 $15.0 $11.7 $11.5 $10.0 $7.8 $8.6 $5.0 $- 2015 2016 2017 2018 2019 2020 2021 2022 21
Slide 23: Experienced Leadership Team
Experienced Leadership Team Sebastien Paré Susan Sumner Alexie Edwards CEO President & COO CFO 25+ years of experience 30 years of executive leadership, 20+ years of experience in finance in digital content and secure consulting and operations and accounting spanning various enterprise workflow stra
Slide 24: Capital Structure
Capital Structure As of September 30, 2022 TSX: C$28M (C$0.82/share) Market Capitalization NASDAQ: $21M U.S. ($0.62/share) Common shares outstanding 34,055,7961 Fully diluted (Excluding warrants) 36,622,3961 Cash $4.3M2 Debt $8.7M Warrants 5,669,4991 Number Exercise Price Expiry Dates outstanding 2,
Slide 25: Intelligence at Work – VIQ Solutions Inc.
Intelligence at Work VIQ Solutions Inc. 24
VIQ Solutions — Investor Presentation (November 2022) on 6ix