Converge Technology Solutions Corp. has reported its financial results for Q1-23, showcasing impressive growth and expansion in profitability. The company’s gross sales for Q1-23 reached $965.3 million, up from $673.9 million in Q1-22, representing a 43% increase. The organic gross profit growth also increased to 16.5% from 13.9% in Q1-22. Additionally, the company achieved 103 net new logos in Q1-23 and had a product backlog increase of $48M from Q4-22 to $527M at the end of Q1-23. The company’s adjusted EBITDA also increased to $41.2 million, up from $29.6 million in Q1-22, representing a 39% increase.
The company has also announced the appointment of Avjit Kamboj as the new Chief Financial Officer, who will report to the Group CEO, Shaun Maine. Kamboj, a finance and technology executive with over 16 years of experience in capital and international markets, will lead finance in the company’s new phase of growth.
Converge has declared a quarterly dividend of $0.01 per share, to be paid on June 16th, 2023, and resuming the company’s normal course issuer bid (NCIB) that commenced in August 2022. The NCIB terminates one year after its start, or earlier if the maximum number of common shares the company is authorized to purchase have been bought.
The company plans on releasing further details on Environmental, Social and Governance (ESG) at its upcoming AGM on June 20th, 2023, but for now, they are focused on prioritizing organic growth over inorganic growth.
Key Takeaway:
Converge’s impressive Q1-23 financial results illustrate their successful execution of their strategy to expand profitability and cash generation. The company’s declaration of a quarterly dividend and resuming their NCIB demonstrate their commitment to shareholders. The appointment of Avjit Kamboj as the new CFO highlights the company’s plans to continue its growth phase. The upcoming AGM will provide more clarity on the company’s plans on ESG.
Related Facts:
Converge had achieved $111M in gross profit in Q4-22.
The company had concluded its strategic review process in Q1-23, leading to the appointment of Kamboj as CFO.
Converge subsidiary Stone Group earned Global winner Green World Awards 2023 and Global Silver Winner in Corporate Social responsibility Category.
Conclusion:
Converge Technology Solutions Corp’s strong Q1-23 results indicate their successful execution of their growth strategy. The priority of organic growth over inorganic growth moving forward, along with the appointment of a new CFO, highlights their continued commitment to growth. The announcement of a quarterly dividend, resuming their NCIB, and earning accolades for Stone Group, showcase their dedication to shareholders, ESG, and their employees.
