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Why Invest in Quorum
Founded in 1996 by President & CEO, Maury Marks, Quorum Information Technologies Inc. is a Canadian company with over 20 years of experience providing dealer management systems (DMS) to auto dealerships.
Quorum has developed its own state-of-the-art proprietary enterprise management software for dealerships called XSELLERATORTM, a comprehensive solution that automates, integrates, and streamlines every department in a dealership (sales, service, parts, accounting), and includes full integration with Original Equipment Manufacturer (OEM) data (GM, Nissan, Ford, etc.)
Quorum develops, markets, sells (through a SaaS pricing model), and implements and supports XSELLERATOR across a wide customer base of franchised automotive dealerships throughout North America, as well as other independent auto (pre-owned) and non-automotive dealerships.
Unique to Quroum’s solution is that XSELLERATOR is more than just a DMS. The tools and processes within allow dealers to not only enhance the sales process, but also provide dealerships with a platform for increasing the service and parts revenues that they generate from their own customers.
Quorum serves a diverse base of dealerships across North America. As of Q3 2017, 338 “rooftops” use the system and these customers range from small single-point dealerships to multi-store operations with hundreds of users.
The company trades on the TSX Venture Exchange under the symbol QIS and employs over 128 people based in offices in Calgary, Alberta, St. John's, Newfoundland, and Detroit, Michigan (USA).
Q3 2017 Fact Sheet (PDF)
Quorum Information Technologies Inc. trades on the TSX Venture Exchange under the symbol QIS and was recognized as a TSX Venture 50TM company in 2016.
If you would like to receive QIS Investor Materials or have any questions, please email us at email@example.com.
The primary driver of growth for Quorum is the number and size of dealership rooftops that implement XSELLERATOR. Sales to new dealership rooftops drive the New Installations revenue stream. At the end of Q3 2017, Quorum had a dealership customer base of 338 rooftops with approximately 78% of those located in Canada and the remainder located in the USA.
Total Addressable Market (TAM)
The main driver of dealership rooftop growth is the size of Quorum's total addressable market, or TAM. The main driver of TAM expansion is integration with the various automobile manufacturers (OEMs) as any DMS must provide full integration with the auto dealership's OEM (Nissan, Ford, GM, etc.). Since 2007, Quorum has integrated with a number of OEMs, expanding its TAM by 449% from 269 rooftops in 2007 to over 1476 at the end of Q3 2017. Quorum has plans for integrating with 8 more OEMs into 2017 and beyond.
Average Recurring Revenue per Rooftop (ARRPR)
Quorum collects recurring revenues from its Support Revenue stream and its Add-On Revenue stream. Once a dealership has installed XSELLERATOR recurring Support Revenues are earned from the SaaS (software as a service) nature of the XSELLERATOR software solution, and recurring Add-On revenues are earned for additional services such as on-site training. These two revenues streams combined are measured to come up with Average Recurring Revenue per Rooftop (ARRPR). Quorum's ARRPR has grown by 17% over the past two years.
Unique to Quorum's solution is that XSELLERATOR is more than just a DMS. The tools and processes within allow dealers to not only enhance the sales process, but also provide dealerships with a platform for increasing the service and parts revenues that they bring in from their own customers. The more a dealer utilizes all of the processes and tools within XSELLERATOR, the more complete a solution it becomes for that dealer.
Dealership satisfaction is a key driver for to continued strong growth. Quorum reports on the consistently high dealership satisfaction ratings it achieves in its quarterly financial reports.
At the end of Q1 2017 Quorum had 52,045,594 common shares issued and outstanding and of these, approximately 37% were owned or controlled by Quorum's Board of Directors, and in a show of support for Quorum's DMS solution, XSELLERATOR, approximately 16% were owned by Quorum's customers.