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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 18 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 franchises, independent and non-automotive dealerships.
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 company trades on the TSX Venture Exchange under the symbol QIS and employs over 110 people in offices based out of Calgary, Alberta, St. John's, Newfoundland, and Detroit, Michigan (USA).
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.
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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 2016, Quorum had a customer base of 325 rooftops with approximately 76% 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 2016. Quorum has plans for integrating with 8 more OEMs beyond 2016.
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 24% 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 2016 Quorum had 52,045,594 common shares issued and outstanding and of these, approximately 37.5 % were owned or controlled by Quorum's Board of Directors, and in a show of support for Quorum's DMS solution, XSELLERATOR , approximately 14.7% were owned by Quorum's customers.