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Softchoice Softchoice Announces Third Quarter 2021 Results Gross Sales increased 21 % driven by 34 % increase in Software & Cloud Gross profit increased 24 % to $ 65 million with double digit growth across all IT solutions and sales channels - November 12th , 2021 , Toronto , ON – Softchoice Corporation ( " Softchoice " or the " Company " ) ( TSX : SFTC ) today announced its financial results for the quarter ended September 30 , 2021 ( “ Q3 2021 ” ) . The Company also reiterated its 2022 Outlook provided during its IPO . Unless otherwise noted , all dollar ( $ ) amounts are in U.S. dollars . " Softchoice achieved strong third quarter organic growth including a 24 % increase in our gross profit , our key top line measurement , driven by increasing customer consumption of cloud products , " said Vince De Palma , Softchoice's President & CEO . " Our strategic focus in our hybrid multi - cloud , collaboration / digital workplace , and software asset management solutions , supported by significant investments we have made in our technical and sales enablement resources , cloud strategies and business transformation initiative Project Monarch , resulted in record salesforce productivity in Q3 and increased customer engagement , with net revenue retention over the last year rising to 108 % and average gross profit per customer hitting record levels . " " We recorded double digit growth in gross profit across all of our sales channels and greater than 20 % growth in each of our Software & Cloud , Services and Hardware IT solutions , the latter despite the negative impact of ongoing hardware shortages globally on sales , " added Bryan Rocco , Softchoice's Chief Financial Officer . " Our decline in Adjusted EBITDA was due to the impact of foreign exchange , as well as increased operating expenses from our ramp of sales - enablement investments to drive growth and certain non - recurring professional fees incurred to support the implementation of a new digital workflow platform for our managed services offering . Additionally , in Q3 2020 , we received $ 3.7 million in government wage subsidies which offset reported expenses versus none in Q3 2021. " ¹ In Q4 , the Company's target remains to achieve double digit year - over - year growth in gross profit , with seasonality expected to remain consistent with historical periods with Q2 and Q4 being the Company's largest quarters . Combined with anticipated strong cash flow generation , the Company expects to enter 2022 in a strong financial position . The Company also reiterated its financial outlook for 2022 today , remaining on track to realize the anticipated net benefits of Project Monarch , driven primarily by top line gross profit enhancements . The Company's immediate focus going forward is on continued execution , investments in sales enablement resources and additional account executives , and realizing the full benefits from Project Monarch to accelerate our growth and margins .