* Required Fields
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 Q2 2018, 352 “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 139 people based in offices in Calgary, Alberta, St. John's, Newfoundland, London, Ontario, and Detroit, Michigan (USA).
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 Q2 2018, Quorum had a dealership customer base of 352 rooftops with approximately 79% 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 Canadian and USA TAM expansion is integration with the various automobile manufacturers (OEMs) as any dealer management system (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 Canadian TAM by 449% from 269 rooftops in 2007 to over 1476 at the end of Q2 2018. In 2017 Quorum also completed Ford USA integration development, and in February of 2018, Quorum piloted its first Ford dealership in the USA, the result being that Quorum can now market XSELLERATOR in the USA, increasing its TAM in the USA by 35%. Quorum has plans to continue to integrate with additional OEMs into 2018 and beyond.
Average Recurring Revenue per Rooftop (ARRPR)
Quorum now collects all of its recurring SaaS based revenues in its Support Revenue stream, and in 2017 it added its recurring Communicator software revenues, previously included in Add-on Revenue, to this 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. Quorum’s trailing twelve month (TTM) ARRPR has grown by 15% 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 Q2 2018 Quorum had a weighted average of 52,698,581 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 15% were owned by Quorum's customers.