Overview

* Sylogist ( SYZLF ) fiscal Q3 total revenue declines 4.2% yr/yr

* SaaS subscription revenue grows 11.9% yr/yr, reflecting transformation to SaaS-driven enterprise

* Adjusted EBITDA margin at 19.3%, net income negative

Outlook

* Company did not provide specific financial guidance for future quarters

Result Drivers

* PARTNER STRATEGY - 48% of ARR Bookings in Q3 were partner-driven, indicating strong traction with partner strategy, per CEO Bill Wood

* RECURRING REVENUE - Co reports 72% of total revenue as recurring, reflecting a shift from lower margin, one-time project services

* SaaS ARR GROWTH - SaaS ARR increased 15% yr/yr to C$33.6 mln, supporting the company's SaaS transformation

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Gross 60.00%

Margin

Q3 C$0.01

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Sylogist Ltd ( SYZLF ) is C$10.50, about 48.5% above its November 5 closing price of C$5.41

* The stock recently traded at 395 times the next 12-month earnings vs. a P/E of 71 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)