Prospective acquisitions offer significant accretive value in revenue and EBITDA plus customer expansion and addressable content in VIQ’s targeted B2B markets.
Focus is on highly accretive document creation and transcription businesses that are immediately accretive and deliver an established customer base with significant additional content in our established markets. Similar gains in our subsidiary transcription business would realize EBITDA gains as our subsidiary goes through implementation of our aiAssist services.
We expect by the end of 2020, our subsidiary S&C will be on a path, similar to many highly profitable medical transcription companies using documentation technologies, as they adopt our technology, platforms and services. That immediately returns greater EBITDA to VIQ as Spark and Cannon and other subsidiaries progress through the transformation.
Key to VIQ becoming the leader of non-medical transcription and content analytics is we are agnostic to all competitor technology. VIQ’s technology is completely adaptable to other technologies providing the ability to serve customers using competitive capture technologies and read their content into aiASSIST and NETSCRIBE portal services as if they originated within our capture technology. Not only will our customers benefit but competitor customers also gain significant value with our services without having to change any technology.
These strategies enhanced growth providing VIQ with a diversified international customer base, 65% growth over the last two years with significant improvements in recurring revenue, access to millions of megabytes of secure content, leading edge aiAssist analytics and patent protected technologies.
Significant investments in new AI based technologies in late 2017 was reversed and a return to profitability followed as VIQ continues to successfully expand into its identified new markets.
Our business plans predict the share of SaaS revenue to increase in proportion to overall revenue. We continue to innovate solutions to customer problems and advance analytics offerings.
VIQ’s (VQS.V) acquisition of transcription companies like S&C not only helps increase its top and bottom lines but also strengthens aiAssist through access to more data, training the AI engine.
VIQ’s aiFramework, coupled with its SaaS subscription revenue and expanding customer base, is likely to set the company on a path of robust growth. Its margins are likely to widen further. VIQ’s gross and net margins have already been widening, as we saw earlier in this series. The company has a high profile, along with a high-quality and extensive 2018 sales pipeline.
VIQ has been able to break even and earn profits over the last few quarters, as the graph above shows. Its profits are likely to keep growing as the company’s AI engine improves, reducing labor costs. VIQ’s trend of positive earnings marks an improvement from its negative earnings in previous years.