VQS: Strengthening Key Verticals; Debt Refinancing Alleviates Near-Term Balance Sheet Pressure
By M. Marin
NASDAQ:VQS | TSX:VQS
READ THE FULL VQS RESEARCH REPORT
Positive takeaways of VIQ Carbon & Sony Ci Media Integration …
VIQ (NASDAQ:VQS) (TSX:VQS) continues to grow its customer base in its four key verticals organically and via strategic acquisitions, despite near-term economic headwinds. For instance, VIQ recently completed the integration of the VIQ Carbon media platform with Sony Ci Media Cloud. The integration is expected to streamline the media production process and facilitate content creation for the company’s media clients within a cyber-secure framework. The integration enables users to remain within Sony Ci and leverage VIQ’s AI-enabled technology. It is expected to strengthen VIQ's media offering.
Positioning platform to benefit from growing need for digitalization, potential market share gains
The company also continues to expand its customer base and solutions in other key verticals. For example, VIQ recently announced a new partnership with a top ten U.S. insurance company to provide recorded claims transcription services. VIQ now works with seven of the top ten U.S. insurance companies, according to management. The company attributes its growth in this vertical to increasing demand among Fortune 500 Insurers, as large insurance companies seek to leverage AI and other automation tools to reduce inefficiencies, improve compliance and expand their bandwidth.
To strengthen its position and offerings in another key vertical, the Legal / Court space, VIQ entered into a strategic partnership in 2022 with software development company LegalCraft. LegalCraft’s flagship product Lexel enables law professionals to collaborate securely to prepare cases for trial. VIQ became the first LegalCraft strategic partner to offer Lexel in the U.S.
Earlier in 1Q23, VIQ fully refinanced debt that was scheduled to mature in 4Q23. The timing of refinancing the debt was difficult – with Federal Reserve actions and a rising interest rate environment – but VIQ was able to complete a refinancing.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.
