CALGARY, August 8, 2018 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the three and six month periods ended June 30, 2018.

Financial and operating highlights for the three and six month periods ended June 30, 2018, compared to the same period in 2017:

  • Revenue increased by 26% to $26.9 million in the second quarter of 2018 and by 24% to $53.0 million for the six month period ended June 30, 2018;
  • Adjusted EBITDA1 decreased by 40% to $2.2 million in the second quarter of 2018 and decreased by 34% to $5.7 million for the six month period ended June 30, 2018;
  • Earnings from operations decreased from $2.0 million to a loss from operations of $0.7 million in the second quarter of 2018 and decreased from $5.4 million to $0.1 million for the six month period ended June 30, 2018;
  • Net earnings decreased from $1.6 million to a net loss of $0.5 million in the second quarter of 2018 and decreased by 82% to $0.7 million for the six month period ended June 30, 2018; and
  • Cash on hand as at June 30, 2018 totaled $90.5 million.


Key factors affecting the results in the three and six month periods ended June 30, 2018:

  • License revenue License and subscription fees increased by $2.8 million or 19% during the second quarter of 2018 and by $6.2 million or 23% for the six months ended June 30, 2018, as compared to the same periods in 2017. Based on local currencies, the growth was 17% during the second quarter and 19% for the six months ended June 30, 2018. Growth in license revenue is largely driven by organic growth from new sales in all regions, the U.S. white label agreements, revenue from the acquired Capshare, Inc. (“Capshare”) and Advanced-HR, Inc. (“Advanced-HR”) businesses and migration of customers from NASDAQ Private Market, LLC to Solium.
  • Transaction activity In addition to the recurring license revenue that Solium collects for the use of its technology platforms, the Company also collects re-occurring transaction based revenue. Transaction based revenue increased by $2.2 million or 35% during the second quarter and by $3.2 million or 23% for the six months ended June 30, 2018, as compared to the same periods in 2017. The per-participant trading activity was 26% higher in the second quarter of 2018 compared to the same period in 2017 and 21% higher than the historical five-year Q2 average.
  • Operating costs – Operating expenses increased by $8.1 million or 42% during the second quarter of 2018 and by $15.6 million or 42% for the six months ended June 30, 2018, when compared to the same periods in 2017. The increases are primarily driven by planned hiring to support the U.S. white label agreements; costs from the new businesses of Capshare, Solium Analytics, and Advanced-HR; and costs associated with an investment opportunity that did not materialize. The Company had 719 full-time equivalent employees (FTEs) at the end of the second quarter of 2018 compared to 594 FTEs at the end of the second quarter of 2017.

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