On April 20, Quisitive Technology Solutions reported fourth-quarter and full-year 2020 financial results, which showed impressive revenue growth. Quisitive provides Microsoft solutions for companies operating in the Microsoft cloud.
In 4Q 2020, Quisitive (QUIS) revenue increased to C$13.1 million from C$5.4 million in the same quarter a year earlier. For the full year, revenue increased to C$49.8 million from C$18.5 million in 2019.
Net income came in at C$2.0 million or C$0.01 per share in the quarter ended December 31, 2020, compared to a net loss of C$4.1 million or C$(0.03) per share in 2019. For the full year, net loss came in at C$9.9 million or C$(0.07) per share compared to a net loss of C$7.4 million or C$(0.08) per share.
The global Microsoft partner and solutions provider had C$11.0 million in cash as of December 31, 2020, an increase of C$2.3 billion from a year ago.
Quisitive CEO Mike Reinhart said, “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.”
Reinhart recognizes that there is still a long way to go to capitalize on all fronts of the business. But with the number of items under development, he is optimistic about Quisitive’s value proposition and looks forward to expanding the company’s footprint in both cloud services and payment solutions.
A month ago, Beacon Securities analyst Gabriel Leung reiterated a Buy rating on the stock and raised his target price from C$1.10 to C$1.70 (9.7% upside potential). Leung stated, “Beyond M&A, we believe the next main catalysts will be additional milestone updates on LedgerPay, including a definitive agreement on bank sponsorship, along with Visa/Mastercard certification.”
Overall, the consensus is that QUIS is a Strong Buy, based on 5 Buys. (See Quisitive Technology Solutions stock analysis on TipRanks.) The average analyst price target of C$2.14 implies an upside potential of about 38.3% to current levels. Shares have jumped more than 40% year-to-date.
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