By M. Marin
TSXV: VQS.V
READ THE FULL VQS.V RESEARCH REPORT
Ongoing initiatives to expand & upgrade the portfolio of tools and technology solutions
Toronto, Canada-based VIQ Solutions (TSXV: VQS.V) operates a technology platform that offers AI-enabled video capture software and audio recording with voice-to-text capabilities. The company believes its clients attain significant benefits from adopting VIQ technology as it continues to innovate, expand, and upgrade its portfolio of technology solutions.
Introducing new solutions has been a consistent element of VIQ’s strategy to provide an end-to-end suite of transcription solutions, often in response to customer feedback or requests. For instance, VIQ unveiled FirstDraft in March of 2021. As the name implies, FirstDraft, powered by aiAssist, enables faster turnaround of transcripts for early first draft review, in advance of editing. FirstDraft converts audio files to text quickly, leveraging the VIQ speech recognition engine, enabling faster turnaround than under prior methods.
The company continues to introduce new solutions to expand the tools it offers existing and prospective clients. Near-term R&D investments will primarily focus on targeted automation, advanced diarization (i.e., separating and identifying voices of different speakers for accurate transcription either by name or label), formatting automation, and standardizing quality assurance. VIQ’s plans to expand and upgrade its product portfolio follow what it calls its multi-year technology roadmap. The company’s strategy is to increase accuracy and strengthen the quality and consistency of its delivered solutions and customer service across its global footprint by leveraging its existing technology and extending and upgrading its offerings by introducing new solutions.
For example, earlier this month, VIQ announced the upcoming release of what it terms a new approach to audio capture to combine recording, streaming transcription, and translation, and offer secure remote access. The product is designed to enable clients to capture, stream, and access live proceedings on-site or remotely and subsequently accelerate workflows.
VIQ also recently introduced NetScribe Advanced Formatter, an advanced automation enhancement designed to streamline court documentation workflows. With its expanding product portfolio – including FirstDraft – the company believes it can address a greater portion of the TAM.
… Supports customer expansion & contract extensions, as tools contribute to up to 30% improvements in efficiency
Among the benefits VIQ sees when clients use its technology tools are streamlining their production costs and shortening turnaround times. VIQ cites regular daily use of NetScribe as contributing to up to 30% improvements in efficiency. Moreover, with a growing portfolio of tools and solutions, VIQ is optimistic that it can continue to expand its customer base and boost stickiness with existing customers. VIQ is also optimistic about its prospects to expand the Software-as-a-Service (SaaS) model, which gives clients access to VIQ software and services solutions, while generating consistent recurring revenue for the company. Importantly, the SaaS model generates recurring and predictable monthly revenue and also helps offset revenue fluctuations that arise from fluctuations in volumes.
As proof-of-concept that its tools enhance clients’ productivity and efficiency, VIQ recently extended two multi-year, multi-million-dollar contracts in its key U.S. and U.K. business units. The first extension is with a client in the Media space. The agreement extends the contract through 2Q 2029. It represents about US $1.6 million in annual revenue.
The second extension is with a UK government client. The agreement extends the contract until 3Q 2028 and represents about US $800k in annual revenue. VIQ has also renewed multiple client contracts in courts, law enforcement, and other government agencies in the U.S.
Recent contract extensions
- Represents ~US$1.6m in annual revenue with Media client
- Represents ~US$800k in annual revenue with UK Government client
- Other extensions with U.S. courts, law enforcement, government agencies
Much of the company’s revenue comes from long-term contracts with government agencies and Fortune 500 companies, according to VIQ, and the company believes its long-term relationships with clients form a strong foundation for future growth and market penetration. High-profile companies that have been or are clients of VIQ's media business unit include Bloomberg, Fox News, and CNN, among others. The company continues to grow its customer base in its key verticals organically and via strategic acquisitions.
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