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VIQ Solutions Reports Second Quarter 2021 Financial Results and Third Quarter 2021 Outlook PHOENIX , Ariz .-- ( BUSINESS WIRE ) -- August 16 , 2021 -- VIQ Solutions Inc. ( " VIQ " or the " Company " ) ( TSX and Nasdaq : VQS ) , a global provider of secure , AI - driven , digital voice and video capture technology and transcription services , today reported unaudited financial results for the second quarter 2021 ended June 30 , 2021 and provided an outlook for the third quarter 2021. Results are reported in US dollars and are prepared in accordance with International Financial Reporting Standards ( " IFRS " ) . " VIQ Solutions reached a significant milestone and began trading on the Nasdaq Stock Exchange on the Nasdaq Capital Market ( “ the Nasdaq ” ) last Thursday . This milestone cements our commitment to change the way evidentiary documentation is captured , transformed , analyzed , and distributed . While we were disappointed to terminate our IPO due to market conditions , we are very excited about our recent listing on the Nasdaq . We expect this move will lead to increased liquidity for our shareholders with the trading of our shares occurring on both the Nasdaq and the TSX markets , ” said Sebastien Paré , VIQ Chief Executive Officer . " Earlier this month , we provided a look into our operational results . At that time , we felt it was prudent to align expectations with lockdowns in Australia and the UK , which delayed some revenue . Despite the impact on our revenue , we decided to protect our workforce in preparation for work with existing accounts , as well as new contracts expected to begin when we emerge from these region - specific lockdowns . These shutdowns also temporarily impacted our gross margin as we incurred expenses without revenue . The level of subsidies to offset this impact was significantly reduced this year versus the prior year with approximately $ 2.5 million less in Covid - 19 wage subsidies , ” said Susan Sumner , VIQ President and Chief Operating Officer . Second Quarter 2021 Financial Highlights : • • • Revenue of $ 8.2 million compares to $ 8.3 million in the same quarter of 2020 and in the first quarter 2021. The decrease of approximately 1 % both year - over - year and sequentially was driven by delayed revenue resulting from COVID - 19 impact as courts in Australia and in the UK were intermittently shutdown . The estimated Covid - 19 related impact on revenue in the quarter exceeded $ 1 million , and was moved into backlog ; Gross profit of $ 4.0 million represented 49 % of revenue compared to $ 5.0 million , or 61 % of revenue , in the same quarter of 2020. The decrease in gross margin for the three months ended June 30 , 2021 versus the prior year was primarily related to a few factors including : delayed revenue due to the Covid - 19 shutdowns moving into backlog ; preparation costs for new contracts , for which revenue are expected to commence during the second half of 2021 ; strategic operating commitments to maintain the Company's editing capacity to meet expected demand ; and phased out Covid - 19 wage subsidies ; Adjusted EBITDA was negative $ 0.3 million versus the prior year Adjusted EBITDA of $ 1.8 million . In addition to the gross profit impacts previously mentioned , the decrease in Adjusted EBITDA was driven by approximately $ 0.6 million in significant one - time professional service fees associated with the completion of capital market milestones including our Nasdaq listing , filing the Company's Base shelf prospectus dated June 10 ,