Information Services Corporation (TSX:ISV) reported record revenue for both the fourth quarter and full year 2023 driven by growth across its Registry Operations, Services and Technology Solutions segments.
For the fourth quarter, the company saw its revenue increase 25% year-over-year to $57.5 million.
Its profit was $9.8 million or $0.54 per diluted share, up from $5.9 million or $0.33 per diluted share in the year-ago quarter.
Revenue for the full year was $214.5 million, up 13% from $189.9 million for 2022. This included $103.5 million in Registry Operations revenue, $101.8 million in Services revenue, and $23.2 million in Technology Solutions revenue, a 45% increase over 2022.
Profit was $25 million or $1.39 per diluted share, compared to $30.8 million or $1.75 per diluted share in the previous year, with the decrease attributed to a higher net finance cost, amortization expense, and acquisition, integration and other costs related to the extension and commencement of registry enhancements.
The company exited 2023 with $24.2 million in cash on hand in addition to having access to a $100 million accordion option, which provides the flexibility to upsize the aggregate revolving credit facility up to $350 million.
“2023 was a year of many achievements for ISC. Most notably the extension of our registry partnership with the Government of Saskatchewan ensures continuity for both customers and ISC through to 2053,” ISC CEO Shawn Peters said in a statement.
“We also continued to invest in our people and technology to support our growth across our segments in 2023 and beyond, including becoming ISO 27001 certified towards the end of the year.”
Looking to 2024, the company guided revenue in the range of $240 to $250 million, representing 17% growth, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $83 million to $91 million, marking a 25% jump.
“The last 10 years at ISC have set the stage for the next period of growth and with our goal to double the size of ISC on a revenue and adjusted EBITDA basis by 2028, we remain focused on delivering sustainable value to shareholders,” Peters said.
Shares of ISC moved higher on its results, adding 2.5% at C$24.20 before Wednesday’s opening bell.
ISC is a leading provider of registry and information management services for public data and records.