Information Services Corporation (TSX:ISV) (ISC) has unveiled its annual guidance and outlook for 2024, projecting meaningful organic growth.
The Saskatchewan-based company anticipates robust growth in 2024, with the top-end guidance range projecting an 18% to 20% year-over-year increase in both revenue and adjusted EBITDA.
The consolidated annual guidance for 2024 projects revenue estimates ranging from $240 million to $250 million and adjusted EBITDA estimates ranging from $83 million to $91 million.
“Our expected performance year-over-year marks the beginning of the next phase of ISC’s growth plan,” the company wrote in a statement. “We intend to leverage the investments and achievements of 2023 while intensifying our focus on organic growth and continuing to execute on accretive M&A opportunities.”
Services are expected to be a significant driver of organic growth, with a forecasted increase in transactions and customer numbers. In the Registry Operations segment, 2024 transactions are predicted to remain flat, but revenue growth is anticipated through the realization of fee adjustments, ISC said.
The technology solutions segment is forecasted to experience double-digit growth in 2024, driven by the delivery of existing and new solutions contracts.
Despite increased capital expenditures related to the enhancement of Saskatchewan Registries, ISC said it expects robust free cash flow in 2024.
Separately, ISC announced the retirement of Ken Budzak, executive vice president, registry operations, effective May 2024.
Budzak has been with ISC since 2001 and his insights and unwavering commitment have significantly contributed to the company's growth. ISC will undertake a process to fill the role during this transition period, ensuring alignment with strategic objectives, while Budzak's established team continues to deliver exceptional performance and service to customers.
"Ken has been an instrumental part of our journey as both a Crown corporation and publicly traded company,” ISC CEO Shawn Peters said in a statement. “His leadership of our Saskatchewan registries business, and more recently our Reamined Systems Inc acquisition, has been invaluable and has helped position the company to be able to execute on its growth strategy. We wish him the very best in his well-deserved retirement."