A Canadian company with a growing book of e-procurement business in the U.S. just posted healthy second quarter financial results.

The company, mdf commerce Inc., and formerly known as Mediagrif Interactive Technologies, for the second quarter of fiscal 2022 ended Sept. 30, posted sales of $25.1 million (US$19.6 million), an increase of $4.3 million (US$3.4 million) or 20.7% compared to $20.8 million (US$16.3 million) for second quarter of fiscal 2021.

Recurring revenue in Q2 represented $20.0 million (US$15.6 million), or 76.8% of total revenues for second quarter of fiscal 2022 compared to $15.9 million (US$12.4 million), or 76.4% of total revenues for Q2 in the previous year.

Net loss was $6.3 million (US$4.9 million) compared to a net loss of $600,000 (US$469,107) for the second quarter of fiscal 2021.

Based in Longueuil, Quebec, mdf commerce develops e-procurement, marketplace, and supply chain collaboration software-as-a-service (SaaS) applications for manufacturers, distributors and public agencies in Canada, United States, Denmark, Ukraine and China.

The company’s growing book of business is seeing a nice spike in activity in the U.S., says chief financial officer Deborah Dumoulin. “With the addition of Periscope, our U.S. based revenue now represents 50% of total Q2 revenue which is up from 43% in Q2 of the prior year, Dumoulin told analysts on a recent earnings call.

In August, mdf commerce completed its acquisition of Periscope Holdings, an Austin, Texas-based provider of e-procurement services to the public sector in a total deal valued at more than $184 million. Periscope provides seven states and 145 cities, counties, special districts, higher education, and non-profit organizations with (SaaS) e-procurement applications and services.

“With Periscope, e-procurement will represent approximately 55% of our total consolidated revenue,” Dumoulin told analysts. “We’re very happy about that e-procurement acquisition and the future that it’s building for us.”

mdf commerce expects Periscope to generate about US$30 million in total revenue in 2021. The acquisition will allow the corporation “to strengthen its position in the North American public e-procurement market,” mdf commerce says.

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