NowVertical Reports Record 2024 Financial Results

Company Hosting Investor Webinar on April 2, 2025, at 10:00 AM EST

• Q4 2024 revenue was $10.9 million, up 94% Y/Y excluding recent divestitures
• On a reported basis, Q4 2024 revenue increased 8% Y/Y
• Q4 2024 Net Income was $0.6 million, up 115% Y/Y excluding recent divestitures
• On a reported basis, Q4 2024 Net Income increased by 116% Y/Y
• Q4 2024 Adjusted EBITDA was $2.6 million, up 225% Y/Y
• 2024 FY Cash flows from operations were $2.8 million

TORONTO, April 01, 2025 (GLOBE NEWSWIRE) — NowVertical Group Inc. (TSX-V: NOW) (“NOW” or the “Company”), a leader in AI-driven data solutions, announces audited financial results for its fourth fiscal quarter ended December 31, 2024. Unless otherwise specified, all dollar amounts are expressed in U.S. dollars. Management will host an investor webinar at 10:00 AM EST (7:00 AM PST) on Wednesday April 2, 2025, to discuss the Company’s financial and business results.

Selected Financial Highlights for the Three Months Ended December 31, 2024:

• Revenue was $10.9 million in the three months ended December 31, 2024 (“Q4 2024”), an 8% increase from $10.1 million for the three months ending December 31, 2023 (“Q4 2023”). Excluding the disposition of Allegient Defense, Inc. (“Allegient”) on May 24, 2024, and Seafront Analytics, LLC (“Seafront”) on December 31, 2023, Q4 2023 revenue was $5.6 million, translating to a year-over-year growth of 94%.
• Gross Profit was $5.7 million in Q4 2024, consistent with $5.7 million in Q4 2023. Excluding the Allegient and Seafront businesses, Q4 2023 gross profit was $4.1 million, translating to a year-over year increase of 37%.
• Administrative Expenses were $3.0 million in Q4 2024, a 52% decrease from $6.1 million in Q4 2023. Excluding the Allegient and Seafront businesses, Q4 2023 administrative expenses were $5.0 million, translating to a year-over-year decrease of 40%.
• Adjusted EBITDA was $2.6 million in Q4 2024, a 225% increase from $0.8 million in Q4 2023. Excluding the Allegient and Seafront businesses, Adjusted EBITDA was $0.5 million in Q4 2023, translating to a year-over-year increase of 420%.
• Net Income was $0.6 million in Q4 2024, an 116% increase from a $3.6 million net loss in Q4 2023. Excluding the Allegient and Seafront businesses, Q4 2023 had a Net Loss of $3.9 million, translating to a year-over-year net income growth of $4.5 million. Net income per basic and diluted share of $0.01 in Q4 2024, compared to a net loss per share of $0.05 in Q4 2023.

Select results for the year ended December 31, 2024:

• Revenue was $46.9 million in the year ended December 31, 2024, (“FY 2024”), a 9% decrease from $51.7 million in the year ended December 31, 2023 (“FY 2023”). Excluding the dispositions of Allegient, Seafront and the Affinio Social (“Affinio Social”) business which was divested on May 10, 2023, revenue was $39.4 million in FY 2024 and $32.5 million in FY 2023, translating to a year-over-year growth of 21%.
• Gross Profit was $23.1 million in FY 2024, a 10% decrease from $25.7 million in FY 2023. Excluding the Allegient, Seafront and Affinio Social businesses, gross profit was $20.5 million in FY 2024 and $18.9 million in FY 2023, translating to a year-over year increase of 9%.
• Administrative Expenses were $18.1 million in FY 2024, a 30% decrease from $25.8 million in FY 2023. Excluding the Allegient, Seafront and Affinio Social businesses, administrative expenses were $16.2 million in FY 2024 and $20.2 million in FY 2023, translating to a year-over-year decrease of 20%.
• Adjusted EBITDA was $7.8 million in FY 2024, a 46% increase from $5.4 million in FY 2023. Excluding the Allegient, Seafront and Affinio Social businesses, Adjusted EBITDA was $7.2 million in FY 2024 and $4.0 million in FY 2023, translating to a year-over-year increase of 77%.
• Net Income was $1.6 million in FY 2024, an 116% increase from a $5.9 million Net Loss in FY 2023. Excluding the Allegient, Seafront and Affinio Social businesses, Net Income was $1.0 million in FY 20024 and a $4.9 million Net Loss in FY 2023, translating to a year-over-year increase of 115%. Net income per basic and diluted share of $0.02 in FY 2024, compared to a net loss per share of $0.08 in FY 2023.
• Cash flows from operations were $2.8 million in FY 2024, an $8.2 million increase from cash flows used in operations of $5.4 million in FY 2023.

“NOW has delivered its strongest quarter to date, demonstrating the power of our focused strategy and disciplined execution. Q4 2024 Adjusted EBITDA of $2.6 million, up from $2.0 million in Q3 2024, indicates our integration strategy and efficiency-focused measures are yielding results. Outstanding credit goes to our operator-first leadership team, who have executed this at a faster pace than anticipated,” said Sandeep Mendiratta, CEO of NOW. “We have renegotiated acquisition liabilities, leading to meaningful cash savings and a more favorable payment schedule, reducing total acquisition-related liabilities by an estimated $5.4 million. Most importantly, this business has been completely turned around—we are now profitable, generating credible EBITDA, and have demonstrated robust organic growth despite a year of transformation. With a strong, ambitious, and deeply invested management team in place, we are confident in steering NOW toward meaningful and sustained growth in the coming quarters and years. Our fourth quarter has demonstrably put us on the path to achieving our objective of $10 million in annual EBITDA on $50 million in revenue, with a best-in-class 20% EBITDA margin. We believe we now have a platform for sustained organic revenue growth, with strong margins across our core markets. We look forward to discussing these points and more on our third-quarter investor call.”

Q4 2024 and Subsequent Business Highlights:

• March 03, 2025: The Company announced its participation in the exclusive, invite-only ROTH Conference, which convenes leading institutional investors and high-growth companies across a range of sectors
• February 20, 2025: Converted CAD$3.025 million in historical obligations from debt to equity through the issuance of 9,168,418 Class A subordinate voting shares.
• February 3, 2025: The sellers of Affinio Inc. agreed to defer the payment of $998,000 in outstanding liabilities previously due in the first half of 2025. The amount will now be payable in late Q4 2025.
• January 16, 2025: Achieves prestigious Google Premier Partner Status in LATAM, solidifying Its leadership in Data and AI Solutions.
• January 14, 2025: Executive management team have acquired approximately 1.06 million Class A subordinate voting shares in the open market. Following these purchases, management’s pro forma ownership is expected to increase to approximately 27%.
• January 13, 2025: The Chief Executive Officer and Director of the Company opted to receive his annual bonus in the form of restricted share units in the Company.
• January 02, 2025: The Company announced that it has entered into a debt settlement agreement with the former owners of Acrotrend Solutions Ltd., including NOW’s CEO, Sandeep Mendiratta, who agreed to settle $815,000 of the $1,055,000 owed to them as of December 31, 2024, through the issuance of Class A subordinate voting shares of the Company.
• December 23, 2024: The Company announced that is has entered into a debt settlement with the former owners of CoreBI S.A. and CoreBI S.A.S., who agreed to settle an aggregate entitlement of $1,250,000 owed to them through the issuance of 5,432,954 Class A subordinate voting shares of the Company.
• December 17, 2024: Announced the launch of its AI Financial Agent as part of the latest update to NowHub-Finance, an end-to-end analytics platform for finance teams. This AI-driven upgrade enhances NOW’s commitment to rapidly transforming data into business value.
• November 26, 2024:   Announced the formation of a Strategic Partnership with Microsoft and the launch of a Global Center of Excellence, aimed at fostering innovation and accelerating growth.
• October 29, 2024: Introduced a Data Risk Mitigation solution and unique risk guarantee, empowering enterprises to uncover, mitigate, and control hidden data risks across complex data environments.
• October 8, 2024: Unveiled an evolved Partner Marketing Solution tailored to help clients navigate the growing complexities of managing partner ecosystems.

Q4 2024 Financial Results Investor Webinar:

The Company invites shareholders, analysts, investors, media representatives, and other stakeholders to attend our upcoming webinar. Management will discuss Q4 2024 results, followed by a question-and-answer session.

Investor Webinar Registration:

Time: Wednesday, April 2, 2025, 10:00 AM in Eastern Time (US and Canada) 

RegistrationLink: 
https://us02web.zoom.us/webinar/register/WN_cEmYLTHBTLqtoK_qDtxqsw 

A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at https://www.nowvertical.com/news-and-media.

Additional Information:

The Company’s audited annual 2024 consolidated financial statements, notes to financial statements, and management’s discussion and analysis for the three and twelve months ended December 31, 2024, are available on the Company’s SEDAR+ profile at www.sedarplus.com. Unless otherwise indicated, all references to “$” in this press release refer to US dollars, and all references to “CAD$” in this press release refer to Canadian dollars.

About NowVertical Group Inc.

The Company is a data analytics and AI solutions company offering comprehensive solutions, software and services. As a global provider, we deliver cutting-edge data, technology, and artificial intelligence (AI) applications to private and public enterprises. Our solutions form the bedrock of modern enterprises, converting data investments into business solutions. NOW is growing organically and through strategic acquisitions. For further details about NOW, please visit www.nowvertical.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Andre Garber, CDO 
 IR@nowvertical.com 
+1(647)947-0223 

Cautionary Note Regarding Non-IFRS Measures:

This news release refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. The Company’s definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses non IFRS financial measures including “EBITDA”, and “Adjusted EBITDA”. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and to eliminate items that have less bearing on our operational performance or operating conditions and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and prepare annual budgets and forecasts.

Non-IFRS Measures:

The non-IFRS financial measures referred to in this news release are defined below. The management discussion and analysis for the year ended December 31, 2024, available at nowvertical.com and on SEDAR+ at www.sedarplus.com contains supporting calculations for Adjusted Revenue, EBITDA % and Adjusted EBITDA

“Adjusted EBITDA” adjusts net income (loss) before depreciation and amortization expenses, net interest costs, and provision for income taxes for revenue adjustments in “Adjusted Revenue” and items such as acquisition accounting adjustments, transaction expenses related to acquisitions, transactional gains or losses on assets, asset impairment charges, non-recurring expense items, non-cash stock compensation costs, and the full year impact of cost synergies related to restructuring activities, such as a reduction of employees.

“EBITDA %” is defined as Adjusted EBITDA as a percentage of Adjusted Revenue.

“Adjusted Revenue” adjusts revenue to eliminate the effects of acquisition accounting on the Company’s revenues, which predominantly pertain to fair market value adjustments to the opening deferred revenue balances of acquired companies.

Cautionary note regarding Forward-Looking Statements

This news release may contain forward-looking statements and forward-looking information (within the meaning of applicable securities laws) which reflect the Company’s current expectations regarding future events. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

All of the forward-looking statement contained in this press release are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward -looking statements contained herein are provided as of the date hereof, and the Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.