If You Invested in Alithya Group inc (ALYA)

Alithya Group Inc. (ALYA) is a strategy and digital technology services company that trades on the Toronto Stock Exchange under the symbol ALYA. The company is described as a trusted advisor in strategy and digital technology services, working with clients to address complex business challenges and support their digital evolution.

According to its own corporate descriptions, Alithya positions itself "on the crest of the digital wave" by combining collective intelligence and expertise to develop practical IT solutions tailored to client needs. The company highlights its role as a shared steward of its clients' success, accompanying them through the full cycle of their digital transformations and "paving new roads to the future of their businesses."

Core business focus and service pillars

Alithya describes its business model as avoiding industry buzzwords and technical jargon in favor of straight talk. Its teams focus on clearly defined pillars of service. In several of its public communications, Alithya identifies three main pillars: strategic consulting, enterprise transformation, and business enablement. In other communications, it further details five pillars: business strategy, business applications implementation, application services, data and analytics, and digital skilling and change enablement.

These descriptions indicate that Alithya's activities span high-level business strategy work, implementation of enterprise applications, ongoing application-related services, and data-focused projects, as well as services aimed at helping organizations build digital skills and manage organizational change.

Digital transformation and technology partnerships

Alithya emphasizes its role in digital transformation, stating that it transforms "the world one digital step at a time." It notes that it leverages AI and the latest technologies in its strategic consulting and digital transformation services, with the goal of helping clients solve business challenges, unlock new opportunities, modernize processes, and gain efficiencies.

The company also highlights a partner ecosystem and "AI-based IP solutions" as part of its approach to accelerating results for clients. In one description, Alithya refers to a "specialized global delivery network" that supports its ability to provide end-to-end solutions, indicating that it can support projects from strategy through implementation and adoption.

Alithya has a significant focus on major enterprise platforms. In its public communications, it notes that it is one of the largest Microsoft partners in North America, with a practice that covers Microsoft Dynamics 365, Azure, Power Apps, Modern Work, Data Solutions, and Digital Adoption. It has been recognized with a Microsoft Business Applications Inner Circle award multiple times, and has also been named a Microsoft Partner of the Year Award winner and finalist in several categories.

Alithya also describes itself as a long-standing Oracle partner, referring to more than 25 years as an Oracle partner and a dedicated Oracle practice. It reports experience with Oracle Cloud applications in areas such as EPM, ERP, HCM, and SCM, and notes that it serves clients in sectors including healthcare, financial services, retail, manufacturing, life sciences, and high-tech.

Geographic footprint and markets served

Alithya's communications reference operations and client activities in multiple regions. In its financial results, the company reports revenues in Canada, the United States, and "International" markets, with specific mention of activities in Australia. It also reports project work in Europe, such as Microsoft Dynamics 365 Finance and Supply Chain Management implementations in France and Spain for a global pool and outdoor living manufacturer.

The company has highlighted a new office in Austin, Texas, describing the city as a vibrant technology hub and a base of operations for its Oracle practice. It also notes that it serves clients across a range of industries, including manufacturing, healthcare, professional services, higher education, financial services, retail, life sciences, and high-tech, based on its Microsoft and Oracle practice descriptions.

Stock listing and capital markets profile

Alithya's Class A subordinate voting shares are listed on the Toronto Stock Exchange (TSX) under the symbol ALYA. The company previously maintained a dual listing on the Nasdaq Capital Market under the same symbol, but announced its intention to voluntarily delist from Nasdaq and consolidate trading on the TSX. In that announcement, Alithya stated that it believes the TSX provides sufficient liquidity for its shareholders and that the cost savings and reduced administrative effort from ending the Nasdaq listing can be redirected to advancing its business.

The company indicated that it planned to file a Form 25 with the U.S. Securities and Exchange Commission in connection with the Nasdaq delisting and that its reporting obligations under U.S. federal securities laws would continue for a period after delisting, with an eventual intention to deregister once relevant conditions are met.

Financial profile and business performance context

In its second quarter fiscal 2024 results, Alithya reported revenues, gross margin, adjusted EBITDA, and net loss figures, as well as details about bookings, backlog, and cash flows. The company discussed trends such as changes in revenues by geography, gross margin performance, and selling, general and administrative expenses. It also commented on factors affecting its results, including conditions in the Canadian banking sector client base, project start timing, and the impact of a provision on tax credits receivable related to previous periods.

Alithya's management commentary emphasized efforts to improve gross margin performance, reduce certain expenses, and focus on higher-margin segments. The company also referred to its sales funnel, cross-selling opportunities, and the addition of new clients, while acknowledging macroeconomic conditions affecting some areas of its business.

Corporate values and culture

Alithya frequently references the meaning of its name, "truth," and links this to a business model that avoids buzzwords and technical jargon. It emphasizes "straight talk" and collaborative teams as core elements of how it works with clients. The company describes itself as "empowered by the passion and enthusiasm of a talented global workforce" and highlights collective intelligence as an important asset.

In multiple communications, Alithya notes that it has obtained two gender parity certifications in Canada and the United States, and that it is pursuing indigenous relations and carbon neutral certifications. It frames these efforts as part of balancing "the desire to do the right thing" with a commitment to "doing things right."

Client work and sector examples

Alithya has publicly discussed several examples of its client work. For instance, it announced the go-live of Microsoft Dynamics 365 Finance and Supply Chain Management in France and Spain for Hayward Holdings, Inc., a global designer, manufacturer, and marketer of pool equipment and outdoor living technology. In that project, Alithya highlighted its F&SCM team, organizational change management (OCM) and training teams, and its role in driving adoption of the new platform.

The company has also described its collaboration with Hanger, Inc., a provider of orthotic and prosthetic products and services, in the context of Oracle Cloud applications implementation. At Oracle CloudWorld, Alithya co-presented a session that followed Hanger's Oracle Cloud implementation journey for ERP, SCM, and HCM, emphasizing how its expertise in Oracle Cloud applications generated value and greater operational efficiency for that client.

Governance and shareholder base

Alithya has reported on its annual general meeting of shareholders, where Class A subordinate voting shares and Class B multiple voting shares were represented. The company disclosed voting results for the election of directors, indicating that all nominated directors were elected by a majority of votes cast. This provides insight into its dual-class share structure and governance processes, as well as shareholder participation levels at the meeting.

Credit facility and capital resources

Alithya has announced amendments to its credit arrangements, including an Amended and Restated Credit Agreement that increased its revolving credit facility and uncommitted accordion amounts and extended the term of the facility, with the possibility of further extensions. The company stated that the increased availability was not immediately required but provided access to capital to support an "accelerated growth path," both organically and through acquisitions. It also noted its relationship with a lending syndicate composed of several Canadian financial institutions.

Legacy description and origins

An earlier description of Alithya characterizes it as a rapidly growing firm of consulting services in information technologies and organizational management, serving customers in North America and Europe. That description references the company's origins in a merger of two Québec information technology firms and emphasizes values such as respect, trust, honesty, transparency, and fun. It also notes an internal culture that values being avant-garde, human, open, and ethical.