Quisitive Completes Strategic Pivot: AI and Cloud Focus Drives 2024 Growth Outlook

Quisitive Technology Solutions Inc. (TSXV: QUIS, OTCQX: QUISF), a global Microsoft Cloud and AI solutions provider, has closed out 2023 with a major restructuring that positions the company for accelerated expansion in artificial intelligence and cloud infrastructure services. The completion of two significant asset separations—the divestiture of PayiQ and BankCard divisions—has fundamentally reshaped Quisitive’s operational profile and financial trajectory heading into 2024.

Financial Performance: Revenue Contraction Offset by Margin Improvement

Full year 2023 revenue from continuing operations reached $121.2 million, down from $137.8 million in 2022, reflecting a challenging environment in professional services delivery. However, the company achieved a notable operational accomplishment: gross margins expanded to 40.2% in the annual period, climbing to 43% in the latter half of the year—a level exceeding industry benchmarks.

This margin improvement underscores Quisitive’s disciplined operational execution. The company rightsized its workforce to align with market realities, while simultaneously shifting its revenue mix toward higher-margin recurring service models. Gross profit from continuing operations totaled $48.8 million against the prior year’s $54.8 million.

Adjusted EBITDA from continuing operations totaled $13.0 million (compared to $15.5 million in 2022). On a pro forma basis—assuming the PayiQ and BankCard separations had occurred on January 1, 2023—adjusted EBITDA would have reached $16.4 million, representing 14% of revenue. For the fourth quarter alone, adjusted EBITDA reached $2.8 million on quarterly revenue of $28.4 million.

Balance Sheet Strengthened Through Debt Reduction

The strategic separation of non-core assets has dramatically improved Quisitive’s financial flexibility. Prior to the divestitures, the company’s total senior debt to adjusted EBITDA ratio stood at 3.04:1.00 as of December 31, 2023. Following the completion of the BankCard sale and execution of an amended credit agreement, this leverage metric compressed to approximately 2.1:1.0—a significant deleveraging that provides capital deployment flexibility for organic growth initiatives and potential strategic investments in AI capabilities.

Strategic Pivot: Microsoft Partnership as Growth Engine

CEO Mike Reinhart emphasized that the foundation of competitive advantage lies in Quisitive’s deep Microsoft partnership. The company has intensified collaboration with Microsoft to architect AI go-to-market strategies and develop next-generation service offerings tailored to enterprise transformation needs.

Management expects these collaborative initiatives to begin generating material revenue contributions within the next 12 months, capitalizing on the accelerating enterprise demand for AI-integrated cloud solutions. The company has already achieved the AI and Machine Learning in Microsoft Azure Specialization designation, underscoring technical credibility in this emerging domain.

Recent operational highlights include the appointment of Dan Kunz as Executive Vice President of Microsoft Cloud and AI Global Delivery Organization, strengthening the organization’s capacity to scale AI service delivery. Additionally, the company announced the upcoming launch of MazikCare copilot—a healthcare-focused AI solution previewed at the 2024 HIMSS Conference—alongside expanded collaboration with Microsoft on data solutions within Microsoft Fabric for healthcare networks in Ontario.

2024 Revenue and EBITDA Guidance

Quisitive has provided initial guidance for fiscal 2024:

• Revenue: $123 million to $137 million
• Pro Forma Adjusted EBITDA: $15 million to $18 million

These projections assume the completion of the PayiQ and BankCard separations as of December 31, 2023, focusing entirely on the remaining Cloud segment and corporate overhead. The pro forma adjustments include an estimated $4.2 million in headcount-related cost savings realized through 2023 workforce optimization, partially offset by normalization of variable compensation benefits.

Market Context and Strategic Positioning

The IT professional services sector confronted material headwinds throughout 2023. Rather than passively absorbing demand pressures, Quisitive responded with aggressive portfolio rationalization: divesting lower-margin revenue streams, recalibrating cost structure, and redirecting organizational bandwidth toward high-growth AI and data analytics solutions.

This repositioning has yielded a leaner, more capital-efficient organization. The company now operates with reduced fixed costs, a de-leveraged balance sheet, and renewed focus on its core competency: architecting Microsoft Cloud and AI solutions that drive enterprise innovation.

Outlook: AI as the Next Growth Phase

Quisitive reaffirms its strategic commitment to capitalize on AI advancements enabled by the Microsoft Cloud platform. Leveraging its legacy of integrating custom and proprietary technologies, the company intends to expand its suite of AI-driven solutions across multiple verticals—healthcare, data analytics, and enterprise transformation services.

Management believes this repositioning, combined with improving market conditions for cloud and AI services, positions Quisitive to deliver organic revenue growth and expand shareholder value through 2024 and beyond. The combination of strategic focus, improved financial metrics, and partnership depth with Microsoft establishes the foundation for the next chapter of growth.

For investor relations inquiries, Quisitive can be reached through its Investor Relations contact team or by visiting the company’s investor relations portal at Quisitive.com.