September 27, 2022 – Mississauga, ON
Smart Employee Benefits Inc., (“SEB” or “the Company”) (TSXV:SEB, OTCQB:SEBFF), announces 3 new contract wins for fiscal year 2022 in Canada and USA. Collectively, the IT budgets for these entities are hundreds of millions of dollars annually, and SEB has vendor status to bid on the delivery of IT solutions and services.
The software/solution wins have a minimum value in excess of $5.7 million. The Professional Services wins are over $70.8 million, including $33.1 million of option years. All contract wins are multiyear recurring revenue contracts with terms between 2 and 11 years.
The Company has also added 3 new “Vendor Management Agreements” authorizing the Company to supply ITS software, solutions and services for the 3 entities. These contracts give the Company the approval to participate in the IT budgets that exceed an estimated $40.0 million annually. The arrangements have terms up to 5 years, which typically are renewed once achieving approved vendor status.
“Following a strong 2021 for contract wins, SEB’s new contract wins in 2022 remain strong,” said SEB CEO John McKimm. “Typically, our contracts take several months to deploy, and although we will realize some revenue in 2022, the full revenue and profitability of these new contract wins won’t flow-through our results until 2023. Furthermore, these new wins add to our large base of recurring revenue, which is currently over 90% of our contracted revenue. Additionally, the MarvalNA solutions contribute to our growing base of business in the USA. Our pipeline of sales opportunities in both Canada and USA remains very robust for 2022. We expect substantial continued growth as the year evolves. Our RFP win rate continues to be over 65%, which is inline with what we experienced in 2021 and substantially higher than years prior.”
About Smart Employee Benefits Inc.:
SEB is an Insurtech company focused on Benefits Administration Technology driving two interrelated revenue streams – software/solutions and services. The Company is a proven provider of leading-edge IT and benefits processing software, solutions and services for the Life and Group benefits marketplace and government. We design, customize, build and manage mission critical, end-to-end technology, people and infrastructure solutions using SEB’s proprietary technologies and expertise and partner technologies. We manage mission critical business processes for over 150 blue chip and government accounts, nationally and globally. Over 90% of our revenue and contracts are multi-year recurring revenue streams contracts related to government, insurance, healthcare, benefits and e-commerce. Our solutions are supported nationally and globally by over 600 multi-certified technical professionals in a multi-lingual infrastructure, from multiple offices across Canada and globally.
Our solutions include both software and services driven ecosystems including multiple SaaS solutions, cloud solutions & services, managed services offering smart sourcing (near shore/offshore), managed security services, custom software development and support, professional services, deep systems integration expertise and multiple specialty practice areas including AI, CRM, BI, Portals, EDI, e-commerce, digital transformation, analytics, project management to mention a few. The Company has more than 20 strategic partnerships/relationships with leading global and regional technology and consulting organizations.
Certain information in this release, may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS RELEASE REPRESENTS THE COMPANY’S CURRENT EXPECTATIONS AND, ACCORDINGLY, IS SUBJECT TO CHANGE. HOWEVER, THE COMPANY EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
All figures are in Canadian dollars unless otherwise stated.
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