Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Canada’s most-awarded
newsroom for a reason
Stay informed for a
lot less, cancel anytime
“Exemplary reporting on
COVID-19” – Herman L
$1.99
per week
for 24 weeks
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Q4 Inc., a Toronto-based software company that operates a cloud-based investor relations platform, has filed to go public on the Toronto Stock Exchange, joining a slew of other software companies that have successfully tapped the public markets to raise money during the pandemic.

A source familiar with the transaction told The Globe and Mail that the company is aiming to raise up to US$150-million from the initial public offering. The Globe is not identifying the source because they are not authorized to speak publicly about the offering.

The company filed its preliminary prospectus with regulators on Tuesday afternoon, but the document did not disclose when Q4 plans to go public, nor the expected pricing range for the IPO.

Story continues below advertisement

The Globe first reported on Q4′s intentions to go public in early May, alongside a string of companies in the mining, technology and health care sectors that are also preparing IPOs in the coming months.

First quarter saw record level of Canadian venture capital financings, industry group says

Q4 designs software geared toward managing the investor relations needs of public companies. The technology facilitates webcasts and earnings calls for investors, and organizes financial statements on the investor relations section of company websites. It also provides data intelligence services to companies, analyzing capital flows and capturing information on activist shareholder activity.

Some of the biggest tech companies, such as Netflix Inc. , Spotify Technology SA , Square Inc. and Shopify Inc. , use Q4′s technology. The company has approximately 2,400 clients, and touts itself as the “industry’s only comprehensive investor relations platform.” Q4 software facilitates roughly half a million investors each quarter at virtual events.

In a letter to investors included in the prospectus, chief executive officer Darrell Heaps said 50 per cent of S&P 500 companies and 63 per cent of the Dow Jones Industrial Average companies use Q4 software for investor relations purposes. “If you have visited a public company’s investor relations website or joined an earnings call in recent years, you have likely used Q4′s software,” he wrote.

The New York-based venture capital firm Ten Coves Capital is one of the biggest investors in Q4, alongside Mr. Heaps. The company’s revenue in 2020 was $40.4-million, an 80.3 per cent jump from the previous year. Nearly 90 per cent of the company’s revenue last year was recurring, meaning that it was derived from clients that renewed their subscriptions to the software.

The company, however, is not yet profitable. It charted a net loss of $13-million in 2020, a slight increase from a net loss of $11-million in 2019. Q4 intends to use the proceeds from the raise to repay an outstanding US$20.8-million credit facility and to pursue new acquisitions – much of the company’s growth last year was driven by acquisitions.

CIBC World Markets Inc., National Bank Financial Inc. and Credit Suisse Securities (Canada) Inc. are lead bookrunners on the deal, alongside Canaccord Genuity Corp., Raymond James Ltd., RBC Dominion Securities Inc., Stifel Nicolaus Canada Inc., TD Securities Inc. and INFOR Financial Inc. Q4 shares, once listed, will trade under the symbol QFOR.

Story continues below advertisement

Q4 is expected to be followed by VerticalScope, a Torstar Corp.-controlled digital media company that is also set to launch its IPO process this week.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the authors of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies