Company Achieves 169% Year over Year Revenue GrowthTORONTO, April 20, 2021 (GLOBE NEWSWIRE) -- Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS), a premier Microsoft Cloud Services and Payment Solutions Provider, today reported financial results for the fourth quarter and full year ended December 31, 2020. Management Commentary“During this past year and in the recent months, we have made significant progress across all facets of our business,” said Quisitive CEO Mike Reinhart. “From consistently executing on our cloud solutions business, achieving key milestones bringing us closer to LedgerPay general availability, and conducting vital acquisitions to further propel both core business segments, the past few months have set us up for transformational growth. Though we are extremely proud of the recent accomplishments and the trajectory we are headed in, our team recognizes that there is still much work to be done in order to capitalize on all fronts of our business. Nevertheless, with the number of items in the pipeline, we remain optimistic about our value proposition and look forward to expanding our footprint within both cloud services and payment solutions.” Fourth Quarter 2020 Financial ResultsThe Company’s audited financial statements for the year ended December 31, 2020 and related management’s discussion and analysis can be found on the Company’s website and on the Company’s issuer profile on SEDAR at www.sedar.com. All figures are expressed in United States dollars unless otherwise stated. Revenue increased to $13.1 million compared to $5.4 million for the quarter ended December 31, 2019. The increase in revenue was due to the addition of Menlo revenues, Ledger Pay licensing revenues and organic growth within the Cloud Services business.Gross profit increased to $5.4 million (41% of revenue) compared to $2.3 million (43% of revenue) for the quarter ended December 31, 2019. The increase in gross profit is consistent with the increase in revenues. Adjusted EBITDA increased to $2.2 million (or 17% of revenue) compared to an Adjusted EBITDA of $0.3 million (or 6% of revenue) for the three months ended December 31, 2019. Net income was $2.0 million or income of $0.01 per share compared with net loss of $4.1 million or a loss of $(0.03) per share in 2019. Full Year 2020 Financial Results Revenue for the full year increased to $49.8 million compared to $18.5 million in 2019. The increase in revenue was due to the addition of Menlo revenues, LedgerPay licensing revenues, and organic growth within the Cloud Services business achieved through adding additional consulting services based on knowledge of client’s business and through cross-selling across the Company. Gross profit increased to $20.2 million (41% of revenue) compared to $7.9 million (43% of revenue) in 2019. The increase in gross profit is consistent with the increase in revenues. Adjusted EBITDA increased to $8.1 million (or 16% of revenue) compared to an Adjusted EBITDA of $1.3 million (or 7% of revenue) for the year ended December 31, 2019. The increase in adjusted EBITDA was primarily driven by the Company’s growth through acquisition strategy, LedgerPay first person IP licensing revenues and the results of a continued focus on investing in sales and marketing, the consulting practice and emerging technologies.Net loss was $9.9 million or a loss of $(0.07) per share compared with net loss of $7.4 million or a loss of $(0.08) per share. As of December 31, 2020, the Company had $11.0 million in cash, an increase from $8.7 million as of December 31, 2019. Fourth Quarter 2020 and Recent Operational Highlights Recognized as a 2021 ‘Venture 50’ company by the TSX Venture Exchange.Announced closing of a private placement with FAX Capital Corp. pursuant to which FAX purchased 16,000,000 common shares of Quisitive from treasury at a price of C$1.25 per Common Share for gross proceeds of C$20,000,000.Retained payments industry leaders to assist with the execution of Quisitive's LedgerPay strategy including mergers and acquisitions and payments solutions operations planning.Announced the closing of C$62.6 million financing transactions in connection with the acquisition of BankCard USA Merchant Services, Inc.Completed acquisition of Mazik Global Inc.Engaged banking and financial technology industries expert Adrian Martinez as an advisor to the development of Quisitive’s LedgerPay risk management program.Executed letter of intent with a major merchant acquiring bank as a sponsor for direct payment processing for Visa, Mastercard, and other major credit and debit card brands.Achieved Independent Standards Organization 27001 and 22301 certifications for LedgerPay.Achieved Microsoft Co-sell ready status for LedgerPay which officially activates Microsoft’s sales team in assisting with commercializing the product.Earned the Windows Server & SQL Migration to Microsoft Azure advanced specialization, a validation of a Microsoft partner's deep knowledge, extensive experience, and expertise in migrating Windows Server and SQL Server-based workloads to Azure.Joined the Microsoft Cloud Native Accelerate Program, an initiative designed for select partners that provide cloud-native application development services to enhance or extend their existing practices on Azure.Engaged Horizontal Digital as its exclusive Microsoft Cloud Solution Provider and strategic channel partner. Quisitive will manage Horizontal’s licensing subscriptions and cloud services for its internal operational needs, and ultimately empower Horizontal to optimize their Microsoft spend, Microsoft productivity, and collaboration tools.Selected as Grant Thornton’s strategic application development partner to accelerate and automate a unique and industry-differentiated platform for System and Organization Controls reporting, by tapping into the power of the Microsoft cloud.Formed strategic relationship with Stewart Title to drive its rapid application development and migration to the Microsoft Azure cloud.Partnered with Essilor, the world's leading ophthalmic lens manufacturer, to rollout a virtual appointment application system to help eye care offices safely reopen around the globe. Conference CallQuisitive management will hold a conference call today (April 20) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. Company CEO Mike Reinhart and CFO Michael Murphy will host the call, followed by a question and answer period. Canada/U.S. dial-in: 800-319-4610International dial-in: 416-915-3239 Please dial-in approximately 10 minutes beforehand and ask to join the Quisitive conference call. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860. A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time. Toll-free replay number: 800-319-6413International replay number: 604-638-9010Replay ID: 6404 For additional information, please visit the Investor Relations section of Quisitive’s website at: https://quisitive.com/investor-relations/. About QuisitiveQuisitive (TSXV: QUIS) is a premier, global Microsoft partner that harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate transformational impact for enterprise customers. Our Cloud Solutions business focuses on helping enterprises move, operate, and innovate in the three Microsoft clouds. Centering on our LedgerPay product suite, our Payments Solutions business leverages the Microsoft Azure cloud to transform the payment processing industry into an entirely new source of customer engagement and consumer value. Quisitive serves clients globally from ten employee hubs across the world. For more information, visit www.quisitive.com and follow @BeQuisitive. Quisitive Company ContactTami Anders, Chief of Stafftami.anders@Quisitive.com Quisitive Investor ContactMatt Glover and John YiGateway Investor RelationsQUIS@gatewayir.com949-574-3860 Reconciliation of Non-GAAP Financial Measures - Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue Financial Measures and Adjusted EBITDAThere are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about the Company and measuring our operational results. The term "Adjusted EBITDA" refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes), changes in fair value of derivatives, transaction and acquisition-related expenses, US payroll protection plan loan forgiveness and earn-out settlement losses. Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage. Management considers these non-operating expenses to be outside the scope of Quisitive' ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations. Cautionary Note Regarding Forward Looking InformationNeither TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future growth strategies and LedgerPay availability. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others the limited history of operations, lack of profitability, availability of financing, the need for additional financing and the timing and amount of expenditures, information pertaining to strategy, plans, or future financial performance, such as statements with respect to future revenues, EBITDA, cash flows and other statements that express management's expectations or estimates of future performance, the anticipated timing of future cash flow and positive EBITDA, ability to successfully execute on corporate strategies, the failure to find economically viable acquisition targets, funding for internally developed technology solutions, client retention and attrition, client demands, reliance on key personnel, economic spending in the IT industry and technological changes in the IT industry. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: changes in technology, customer markets and demand for the Company’s services; the efficacy of the Company’s software and product offering; sales and margin risk; acquisition and integration risks; dependence on economic and market conditions including, but not limited to, access to equity or debt capital on favorable terms if required; changes in market dynamics including business relationships and competition; information system risks; risks associated with the introduction of new products; product design risk; risks related to the Company being a holding company; environmental risks; customer and vendor risks; credit risks; tax and insurance related risks; risks of legislative changes; risks relating to remote operations; key executive risk; risk of litigation risks; risks related to contracts with third party service providers; risks related to the enforceability of contracts; risks related to general economic, market and business conditions, including, but not limited to, the ongoing impact of the COVID-19 pandemic; the limited operating history of the Company; reliance on the expertise and judgment of senior management of the Company; risks related to proprietary intellectual property and potential infringement by third parties; risks relating to financing activities including leverage; risks relating to the management of growth; increased costs associated with the Company becoming a publicly traded company; increasing competition in the industry; risks relating to energy costs; reliance on key inputs, suppliers and skilled labour; cyber-security risks; risks related to quantifying the Company’s target market; risks related to industry growth and consolidation; fraudulent activity by employees, contractors and consultants; conflicts of interest; risks related to the cost structures of certain projects; risks relating to certain remedies being limited and the difficulty of enforcement of judgments and effect service outside of Canada; risks related to future dispositions; sales by existing shareholders; the limited market for securities of the Company; price volatility of the common shares of the Company; no guarantee regarding use of available funds; currency fluctuations; and those factors described under the heading "Risks Factors" in the company's annual information form dated May 15, 2020 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the company believes, or believed at the time, to be reasonable assumptions, the company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.