Q1 2027 Alithya Group Inc Earnings Call Transcript
Key Points
- Alithya Group Inc (ALYAF) has a healthy pipeline with late-stage opportunities continuing to build, indicating strong future demand.
- The company signed 37 new clients in the quarter, with over 70% of bookings from new business, including 28% from new customers.
- Alithya Group Inc (ALYAF) is seeing strong momentum in AI and Copilot adoption, with over 300,000 Microsoft 365 Copilot licenses deployed globally.
- The company's new reporting segments provide greater visibility into strategic growth areas, reflecting its transformation toward higher-value services.
- Alithya Group Inc (ALYAF) maintains a robust recurring client base with 77.4% of revenues from existing clients, and its net debt to EBITDA ratio remains comfortable at 2.9 times.
- Alithya Group Inc (ALYAF) reported a 15.4% year-over-year decline in revenues, with gross margin percentage dropping to 30.4% from 32.1%.
- The company experienced lower utilization rates due to longer client decision-making and conversion cycles, impacting profitability.
- Bookings were soft with a book-to-bill ratio of 0.85 for the quarter, reflecting delayed project starts and market headwinds.
- The Industry Services and Solutions segment saw a 21.6% revenue decline, partly due to reduced government contracts and financial services headwinds in Quebec.
- Adjusted EBITDA fell to $5.4 million (5.2% of revenues) from $11.6 million (9.4%) in the prior year, and the company reported a net loss of $2.4 million.
Good morning, everyone, and welcome to Alithya's first-quarter fiscal 2027 results conference call. Thank you for joining us this morning. The press release, along with the MD&A containing condensed financial statements and related notes was published this morning and is now accessible on our website. The webcast presentation can also be found on our website in the Investors section.
Please be advised that this call will contain forward-looking statements, which are subject to various risks and uncertainties that may cause actual results to differ materially from those anticipated. These statements include our estimates, plans, expectations, and statements regarding future growth, operational results, performance and business prospects that do not solely relate to historical facts.
These statements may also refer to future events, including expectations around client demand, business opportunities, leveraging our services, IP, AI, and expertise to meet client needs, excelling in a competitive market, achieving our
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