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Highlights

  • Tecsys Inc develops and sells enterprise supply chain management software for transportation logistics, distribution, warehousing, point-of-use, and order management applications.
  • In the first quarter of the fiscal year 2024, Tecsys registered 44% growth in revenue from software as a service (SaaS). It stood at CAD 11.5 million, as compared to CAD 8.0 million in Q1 2023.
  • TCS posted record quarterly revenue of CAD 41.9 million, marking 22.5% surge from CAD 34.2 million in Q1 FY23.

 One Small Cap Technology Stock Tecsys Inc (TSX: TCS) develops and sells enterprise supply chain management software for transportation logistics, distribution, warehousing, point-of-use, and order management. The client base of the company covers healthcare systems, third-party logistics, retail, services parts, as well as wholesale distribution industries.

In the first quarter of the fiscal year 2024, Tecsys registered 44% growth in revenue from software as a service (SaaS). It stood at CAD 11.5 million, as compared to CAD 8.0 million in Q1 2023. Also, the company posted record quarterly revenue of CAD 41.9 million, marking 22.5% surge from CAD 34.2 million in Q1 FY23. Its bottom-line was recorded at CAD 1.1 million, as compared to CAD 0.04 million in the previous corresponding period. The Annual Recurring Revenue (ARR) of the firm was 20% higher to CAD 78.3 million at July 31, 2023, versus CAD 65.1 million at July 31, 2022.

Tecsys clocked a 31% license and hardware gross profit margin for the quarter ended July 31, 2023, against 26% for Q1 FY23. This improvement was mainly because of delivery of a bigger mix of higher margin hardware revenue.

For the full fiscal year 2024, Tecsys is expecting its total revenue growth to be between 10% to 15%, owing to expected 35%-37% hike in revenue from SaaS. Moreover, for FY 2024, the company expects to clock Adjusted EBITDA margin of 6%.

Top 10 Shareholders

Around 48.10% of the total shareholding in Tecsys is held by its top ten shareholders. While Fiera Capital Corporation owns around ­­­11.79% shares in the company, Brereton (David) is the second-biggest shareholder of TCS with approximately 7.05% stake.

Stock Price Performance

TCS’ stock price gains 1.14% over the last one month. It has jumped by over 5.5% in the last three months. The stock’s 52-week high and low price stand at CAD 32.03 and CAD 23.75, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 8, 2023. The reference data in this report has been partly sourced from EODHD/Others.