By M. Marin
Shares of VIQ Solutions (OTC:VQSLF), which operates a technology platform that offers artificial intelligence (AI) enabled video capture software and audio recording with voice-to-text capabilities, has qualified to trade on the OTCQX. The company expects the uplisting to boost investor interest in its shares and enhance visibility within the investment community. Beginning on January 2, 2020, the company’s shares will commence trading under the symbol VQSLF. In the interim, the shares will trade on OTCQX under the symbol VQSLD. Moreover, the company targets an uplifting to NASDAQ by the end of 2021 or in 2022, according to management.
In addition, the company’s 3Q19 operational and financial results reflect improvements resulting from management’s ongoing implementation of its strategy. For example, the company had 720 clients set up on NetScribe at the end of September 2019, up from 55 at the end of June 2019 and zero at the end of September 2018.
Company Targets: 1,000 clients on NetScribe 2019; 100% 2020
This trend is consistent with the company’s operational goal to drive digital transformation and AI integration. In turn, this is expected to help expand the company’s margins and lead to growing profitability. Thus, as VIQ accelerates the integration of AI into its platform, the company expects gross margins to continue to expand. Management targets reaching 1,000 clients on NetScribe for 2019 and 100% of its clients by end of 2020.
By leveraging AI tools, VIQ’s technology allows clients to streamline the document-creation process and also to improve efficiency. Management believes that its customers can obtain results faster with VIQ and realize higher volume per worker and reduced unitary cost and production time. The company’s strategy is to enable machines to perform most of high-volume speech to text conversion so that workers can focus more on quality assurance. Human to machine collaboration via an integrated cloud-based platform driven by speech recognition is therefore one of the underlying foundations of the company’s platform.
Separately, 3Q19 revenue came in an impressive $6.45 million, which represents a 111% year-over-year advance. The company reported record gross profit of $2.9 million, which reflects a gross margin of 45%. Management expects that as it continues to transition toward recurring SaaS accounts, it will further improve the quality of its revenue base and generate higher margins.
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