Information Services Corporation (TSX:ISV) saw strong revenue growth during the first quarter as the provider of registry and information management services for public data and records embarks on its next growth phase.
Revenue in Q1 grew 15% year-over-year to $56.4 million, which the company attributed to fee adjustments within its Saskatchewan Registries division, customer and transaction growth in Services’ Regulatory Solutions division and the advancement of projects and implementation contracts in its Technology Solutions business.
Adjusted net income was $8.5 million or $0.47 per share, up from $6.8 million or $0.38 per share a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew to $19.4 million from $14.5 million as pricing increases at Saskatchewan Registries drove an improvement in adjusted EBITDA margins to 34.5% from 29.5%.
CEO Shawn Peter highlighted that Q1 marked the beginning of a new growth phase for ISC with the launch of its five-year growth plan under which the company plans to double the size of the business by 2028.
“After 10 years of success, culminating with the signing of the extension agreement with the province of Saskatchewan to 2053, it was important that we ensure that the next phase of growth is ambitious but realistic,” Peter said in a statement.
“Like most quarters, the company delivered strong operating results from across all our segments with revenue and adjusted EBITDA both up compared to the prior year period. This represents a strong start to the year and to the next phase of our growth journey.”
The company maintained its full-year guidance of revenue in the range of $240 million to $250 million and adjusted EBITDA between $83 million and $91 million.
It continues to expect to see “robust” free cash flow in 2024.