Softchoice soars on Q4 results

Shares of Softchoice (Softchoice Stock Quote, Chart, News, Analysts, Financials TSX:SFTC) are heading up the TSX leaderboard today after the company reported its fourth quarter results.

This morning, SFTC posted its Q4 and fiscal 2023 results. In the fourth quarter, the company delivered Adjusted EBITDA of $28.4-million on Gross Sales of $604.6-million, a topline that was up 5.9 per cent over the same period last year.

“Our record performance in 2023 validates our strengths in our strategic focus areas of cloud, digital workplace, and software asset management, all of which are underpinned by security, and our investments in driving organic growth by continuously adding to our sales capacity and technical capabilities,” CEO Andrew Caprara said. “These investments are helping us build a highly recurring, consumption-based Software & Cloud business that achieved double-digit gross profit growth in 2023, outpacing our average growth rate in those solutions compared to the prior five years. This growth offset the impact of industry-wide challenges within the wider Hardware market, resulting in our organic growth rate exceeding major competitors in our markets. We are continuing to grow our sales capacity, rolling out innovations in our software asset management and services offerings, and investing in our AI solutions. Since the launch of Copilot for Microsoft 365 last November, we have seen extraordinary customer interest in identifying use cases and preparing their IT environments for AI applications. As one of the largest software and cloud solution providers in the North American mid-market, we are well positioned to become a leader in driving adoption of Copilot for Microsoft 365 and deliver full next-generation cloud and workplace AI solutions across Microsoft Azure, AWS, and Google Cloud Platform.”

At press time, shares of Softchoice were up 9.5 per cent to $19.40.