Canada NewsWire
VANCOUVER, Nov. 6, 2019
ARR Jumps 84% to $5.81M and Net Billings Increase 93% to $2.14M
VANCOUVER, Nov. 6, 2019 /CNW/ - MediaValet Inc. (TSX-V:MVP) (the Company), a leading provider of cloud-based digital asset management ("DAM") and creative operations software, is pleased to report its results for the three and nine months ended September 30, 2019.
Summary of Quarterly Results
Three months ended | Nine months ended | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Revenue | $ | 1,368,936 | $ | 769,739 | $ | 3,483,958 | $ | 2,081,202 |
% Increase from prior year period | 78% | 29% | 67% | 30% | ||||
Gross Margin | 1,183,158 | 593,742 | 2,996,078 | 1,614,369 | ||||
Gross Margin % | 86% | 77% | 86% | 78% | ||||
Operating Expenses(2) | 1,783,286 | 1,454,283 | 4,905,241 | 4,397,152 | ||||
% Increase | 23% | 6% | 12% | (1%) | ||||
EBITDA Loss(3) | (600,128) | (860,541) | (1,909,163) | (2,782,783) | ||||
% Decrease | (30%) | (1%) | (31%) | (10%) | ||||
Net loss | (796,417) | (993,707) | (2,550,029) | (3,284,884) | ||||
% Decrease | (20%) | (14%) | (22%) | (17%) | ||||
Loss per share | (0.05) | (0.06) | (0.16) | (0.24) | ||||
As at | As at | As at | ||||||
Annual Recurring Revenue ("ARR")4 | $ | 5,808,349 | $ | 3,150,232 | $ | 3,511,967 | ||
% Increase over prior year | 84% | 25% | 41% | |||||
Modified Working Capital (excluding Deferred | ||||||||
Revenue and Debt) | 3,154,091 | 192,514 | ( 164,546) | |||||
Deferred Revenue | 3,764,988 | 1,839,061 | 2,323,742 | |||||
% Increase over prior year | 105% | 17% | 57% | |||||
Total assets | 5,921,717 | 1,710,401 | 1,980,184 | |||||
Lease Liabilities | 519,306 | - | - | |||||
Total Long-Term and Convertible Debt | 3,277,026 | 3,000,000 | 3,150,000 | |||||
Shareholder Deficiency | (3,399,803) | (4,184,544) | ( 5,174,656) |
"Q3 was a momentous quarter for us," commented David MacLaren, Founder and CEO of MediaValet. "In addition to being the first quarter that we've added more than $1M in net new ARR ("NNARR"), it's also the first quarter that we reach a breakeven Net Billings level. The MediaValet team has done a tremendous job of executing our strategic go-to-market plan and delivering on our innovative product roadmap. Thanks to their ongoing commitment and hard work, we continue to gain market share in the enterprise DAM market and grow our strong, robust customer base. This has led to a record breaking Q3 with ARR growing to $5.81 million, up 84% from last year and 23% sequentially; our NNARR for the quarter increasing 282% to $1.08 million over Q3 last year; and, our year-to-date NNARR climbing 247% to $2.30 million over the same period last year."
Mr. MacLaren continued, "Q3 saw our highest number of customer adds in a single quarter and our existing customer net retention rate, year-to-date, maintained near 100%. I'm extremely proud of these results, but I believe we've truly only just begun. With each new quarter, we expect our revenue and ARR to continue to increase, and our customer acquisition and retention rates to remain strong."
"Q3 Net Billings(5) reached a new record at $2.14 million, up 93% from Q3 last year and up 69% sequentially," commented Rob Chase, Executive Chair and CFO. "This milestone is monumental for us as, at $2.14 million, it is the first quarter of Net Billings at a breakeven level compared to Operating Expenses plus Cost of Sales of $1.97 million in Q3. In Q3 last year, we considered reaching the million dollar mark in a quarter a major milestone; one that was years in the making. Just one year later, we have more than doubled that accomplishment – and have done so with increasing predictability thanks to our SaaS business model and consistent investment in our R&D and sales & marketing teams."
Mr. Chase continued, "With our recurring revenue now at $5.81 million, strong customer retention rates, and a solid balance sheet, we have set the stage for an exciting year ahead."
Results of Operations
Key Financial Metrics:
Technology and Product:
Operations and Corporate:
1 Adoption of IFRS 16: Fiscal 2018 figures have not been restated for adoption of IFRS 16 as the changes were applied starting January 1, 2019 on a retrospective basis. Had Fiscal 2018 figures been restated, the percentage change from 2018 would be a 14% increase for Operating Expenses, and a 27% decline for EBITDA Loss. IFRS 16 did not impact the Net Loss. See "Adoption of New Account Standards" |
2 Operating Expenses include Sales & Marketing, Research & Development and General & Administrative. |
3 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs. |
4 Annual Recurring Revenue (ARR) is a non-IFRS measure that provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annual recurring revenue from existing customer contracts or commitments as of the reporting period end date, and as such management believes ARR to be a meaningful measure for assessment of Company performance. ARR is recorded as deferred revenue when it is invoiced and is recognized in revenue evenly on a monthly basis over the contract term. |
5 Net Billings are a non-IFRS measure representing the sum of invoiced sales in the period, including both existing customer renewal invoices and new customer invoices with standard payment terms (generally net-30). Net Billings are calculated by subtracting closing deferred revenue from opening deferred revenue and adding recognized revenue for the period. Management believes Net Billings are an important measure for understanding the business, as given that the related revenue is deferred and amortized, Net Billings provides a measure of the amount of cash generated from customers in the period. |
MediaValet' s full financial statements and related MD&A are now available on SEDAR.
About MediaValet, Inc.
MediaValet stands at the forefront of the enterprise cloud-based digital asset management and creative operations industry. Built exclusively on Microsoft Azure and available in 140 countries, 54 Microsoft data center regions, around the world, MediaValet delivers unparalleled enterprise-class security, reliability, redundancy and scalability while offering the largest global footprint of any DAM solution. In addition to providing all core DAM capabilities and local desktop-to-cloud support for creative teams, MediaValet offers industry leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Oracle Marketing Cloud (Eloqua), Drupal 8, WordPress, Hootsuite and many other best-in-class 3rd party applications.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE MediaValet Inc.
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