This advertisement has not loaded yet, but your article continues below.The joint bookrunners offering the common shares are CIBC World Markets, National Bank Financial and Credit Suisse Securities Canada. The underwriters are Canaccord Genuity, Raymond James, RBC Dominion Securities, Stifel Nicolaus Canada, TD Securities and Infor Financial, along with the bookrunners.
According to the prospectus, Q4 is not yet profitable, and its losses have grown in recent years. In the year ended Dec. 31, 2020, it reported a net loss of roughly US$13.1 million, up from about US$11 million in 2019 and nearly US$8.3 million in 2018. For the three months ended March 31, 2021, the company saw a net loss of almost US$12.3 million, up from about US$2.4 million in the same time the previous year. It attributes the losses to “substantial investments we made to grow our business.
Its revenue, however, has been growing steadily. In its 2020 financial year, it recorded almost US$40.4 million in revenue, up from US$22.4 million in 2019 and US$17.3 million in 2018. Nearly 90 per cent of its revenue in 2020 was recurring from subscriptions. It attributes its revenue growth to new customers, including those it added through acquisitions.
Q4 now has almost 2,400 customers including its backlog, wrote Heaps, up from about 1,000 in 2018. By the end of March 2021, half of the S&P 500 had used its platform for their capital-markets investor-relations programs, and about 500,000 investors had attended Q4-hosted virtual events each quarter, according to the prospectus. Q4 maintains the profiles of about 350,000 institutional investors, their firms and underlying funds.
Heaps still sees big growth ahead for the firm. The prospectus claims structural changes, including fee compression and changing investor preferences, are disrupting the capital markets, and participants want technology that allows them to scale cost effectively by using data to drive decisions. Public companies are becoming more proactive in finding shareholders, and there is a demand for better capital-markets data, the prospectus says.