Mr. Sebastien Pare reports

VIQ SOLUTIONS REPORT FIRST QUARTER 2024 RESULTS

VIQ Solutions Inc. today released its unaudited financial results for the first quarter ending March 31, 2024. Results are reported in United States dollars and prepared in accordance with international financial reporting standards (IFRS).

"This quarter's performance was noteworthy on a number of fronts. Despite the normal seasonality of the court's segment in January, two of the three months in the quarter generated positive adjusted EBITDA. Directionally, the adjusted EBITDA path is the result of the positioning of our technology platform NetScribe aiAssist, the human adoption of industry specific AI, the previously announced cost reductions, price increase adjustments and the launch of some of the larger bookings in our insurance segment. These drivers have laid the foundation for a continued financial improvement as the year progresses," said Sebastien Pare, chief executive officer of VIQ Solutions.

First quarter 2024 financial highlights

• Revenue of $9.9-million, a decrease of $100,000 or 1 per cent, from the same period in the prior year. Excluding the impact of foreign currency exchange, the company would have reported revenue growth of 0.4 per cent over the same period in the prior year.
• Gross profit of $4.4-million, which was similar to the same period in the prior year.
• Net loss of $1.8-million, a decrease of $1.6-million, from the same period in the prior year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of negative $100,000, an improvement of $1-million, or 91 per cent, from the same period in the prior year.

"We are pleased with the significant improvement of approximately $1-million to adjusted EBITDA quarter over quarter and excited about our prospects for 2024. We executed and progressed against the strategic initiatives we set in motion at the beginning of 2023, continuing through the first quarter of 2024, which have resulted in significant cost reductions. Improving VIQ's adjusted EBITDA performance continues to be a top priority," said Alexie Edwards, VIQ's chief financial officer.

First quarter 2024 operational highlights

• As of the end of March, 2024, 50 per cent of VIQ's available work in Australia was migrated to the Netscribe aiAssist platform which will drive improved gross margins.
• Volume gains seen in the insurance vertical with a new United States client that ranks in the top five U.S. insurance carriers. The trend in higher volumes is expected to continue.
• Implemented price increases have continued to provide a lift to revenues.
• Client adoption and utilization of FirstDraft under SaaS (software-as-a-service) contracts is increasing.
• Australia's market demand remains strong, which is reflected by improving volumes.
• As a result of the company's domain specific language models (DSLMs), the company anticipates an increase in SaaS revenue driven by high "usability and accuracy" of the drafts that VIQ is delivering to customers.

"Q1, which is heavily impacted by seasonality in Australia, is typically the lowest revenue generating quarter of the year. Our technology platform migrations in Australia to Netscribe is being embraced not only by our transcribers but also by our customers that are not only adapting to the technology but engaging to accelerate disruption within the courts and legal sectors. Our results in the first quarter, show we are delivering as expected, in particular, we are encouraged by the recovery of our run rate in U.S. verticals such as insurance and criminal justice. We are also excited by the long-awaited implementation of one of the top insurance companies in the U.S. This organic win is a meaningful contract that will help fuel and fortify favorable trends in 2024. Innovations that will be released in the next quarter will top off the requirements to fully execute and solidify our position as both the services and technology lead in all the geographies where we operate," said Susan Sumner, VIQ's president and chief operating officer.

A copy of the company's unaudited financial statements and accompanying MD&A (management's discussion and analysis) for the three months ended March 31, 2024, will be available under the company's profile on SEDAR+.

Conference call details

VIQ will host a conference call and webcast to discuss the financial information on May 14, 2024, at 11 a.m. Eastern Time. The call will consist of updates by Sebastien Pare, VIQ's chief executive officer, Alexie Edwards, VIQ's chief financial officer, and Susan Sumner, VIQ's president and chief operating officer, followed by a question-and-answer period.

Investors may access a live webcast of the call on the company's website or by dialling 1-888-440-4052 (North America toll-free) or 1-646-960-0827 (international) to be connected to the call by an operator using conference ID 4983233. Participants should dial in at least 10 minutes prior to the start of the call.

A replay of the webcast will be available on the company's website approximately one hour after the conference call concludes.

About VIQ Solutions Inc.

VIQ Solutions is a global provider of secure, AI-driven (artificial intelligence), digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured and repurposed into actionable information. The cybersecure AI technology and services platform are implemented in the most rigid security environments, including criminal justice, legal, insurance, government, corporate finance, media and transcription service provider markets, enabling them to improve the quality and accessibility of evidence to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

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