ProntoForms Reports Q1 2022 Financial Results
Achieves 14% annual growth in recurring revenue and fourth quarter growth of 2% over Q4 2021
OTTAWA, May 05, 2022 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in no-code app development platforms for field teams, announced today its first quarter (Q1) financial results for the period ended March 31, 2022. All amounts are in US dollars unless otherwise stated.
“We achieved 14% growth in recurring revenue over the 2021 comparable quarter. Our Annual Recurring Revenue (ARR) base at the end of Q1 was $19.6 million with 41% from customers with greater than $100,000 of ARR. As we continue our transition to focus on enterprise sales, we saw a Q1 decrease in our ARR base by 0.7%. The decrease can be attributed partly to a 1.5% reduction in ARR from the completion of a one-year project and lower new bookings in the quarter as we transition through the longer sales cycles typical of the larger enterprise sales on which we are increasingly focused. We are pleased that we were able to follow up our first quarter with a recent enterprise expansion of over $180,000 ARR, bringing that customer to a total of approximately $870,000 ARR,” said Alvaro Pombo, Founder and Chief Executive Officer.
Mr. Pombo continued, “Our most recent customer expansion win demonstrates the success of our enhanced go-to-market. We’re scaling conversations with our customers on how our platform can help them address pressing business challenges, like inflation and the labor market. Our improved team is uncovering more enterprise expansion opportunities.”
Financial Highlights - 2022 First Quarter
- Recurring revenue in Q1 2022 increased by 14% to $4.89 million compared to $4.31 million in Q1 2021, and increased by 2% compared to $4.80 million in Q4 2021.
- Total revenue for Q1 2022 increased by 9% to $5.04 million compared to $4.61 million in Q1 2021, and increased by 1% compared to $5.01 million in Q4 2021.
- Gross margin for Q1 2022 was 84% of total revenue compared to 85% in Q1 2021 and 84% in Q4 2021. Gross margin on recurring revenue was 89% for Q1 2022 compared to 91% in Q1 2021 and 90% in Q4 2021.
- Operating loss for Q1 2022 was $1.49 million, up from an operating loss of $1.07 million in Q1 2021 and up from an operating loss of $1.03 million in Q4 2021.
- Net loss for Q1 2022 was $1.54 million, up from a net loss of $1.10 million in Q1 2021 and up from a net loss of $1.12 million in Q4 2021.
Recent Operational Highlights
Notable new and expansion progress from enterprise customers, including:
- Subsequent to Q1, a global heavy manufacturing organization increased their commitment to ProntoForms by over $180K ARR to approximately $870K ARR. This ARR is contractually committed through contracts expiring at various times from late 2022 through the end of 2023. This increase will support their full asset lifecycle business model.
- A Fortune 500 power and renewable energy global enterprise deployed ProntoForms’ technology starting with 450 subscriptions across two sub-divisions. ProntoForms supports health and safety reporting, inspection processes for wind and hydro turbines, and gathering performance metrics to enable their field engineers and salespeople.
- A Fortune 500 oil & gas enterprise has expanded its multi-year deployment of ProntoForms by 200 subscriptions for a total of over 2000 subscriptions as part of a global Master Services Agreement (MSA) where ProntoForms is the sole mobile forms solution approved for use in field operations.
- A Fortune 500 HVAC and refrigeration organization added over 510 ProntoForms subscriptions to support field technicians in reliably completing complex work.
- ProntoForms announced the general availability of a new client app for the macOS® operating system software, now available on the macOS App Store® online store.
Q1 Conference Call Date:
Date: Thursday, May 5th, 2022
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 647-794-4605
Toll Free – (+1) 866-575-6539
Conference ID: 9536629
Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 9536629
Expiry Date: May 12th, 2022 at 11:59pm EDT
About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company's solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise systems of record.
The Company’s 100,000+ subscribers harness the intuitive, secure, and scalable solution to increase productivity, improve quality of service, and mitigate risks. The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.
For additional information, please contact:
| Alvaro Pombo Chief Executive Officer ProntoForms Corporation 613.599.8288 ext. 1111 [email protected] | Babak Pedram Investor Relations Virtus Advisory Group Inc. 416-644-5081 [email protected] |
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, potential benefits of using the Company’s products, customers’ commitment to use the Company’s products going forward, the recurring nature of the Company’s revenues, the revenues anticipated to be received by the Company from recent contracts referred to above and anticipated market trends are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company’s business and value may not grow as anticipated or at all, revenue anticipated from contracts may not be received due to many risks, including factors specific to the customer, and anticipated market trends may not occur or continue. Historical growth levels and results may not be indicative of future growth levels or results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. There are a number of risk factors that could cause future results to differ materially from those described herein. Please see “Risk Factors Affecting Future Results” in the Company’s annual management discussion and analysis dated March 10, 2022 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2021 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.
Neither 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.
| PRONTOFORMS CORPORATION | |||||||
| Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | |||||||
| For the three months ended March 31, 2022 and 2021 | |||||||
| (in US dollars) | |||||||
| Three months ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Revenue: | |||||||
| Recurring revenue | $ | 4,890,716 | 4,306,308 | ||||
| Professional and other services | 150,394 | 307,155 | |||||
| 5,041,110 | 4,613,463 | ||||||
| Cost of revenue:(1) | |||||||
| Recurring revenue | 552,072 | 393,829 | |||||
| Professional and other services | 255,377 | 281,935 | |||||
| 807,449 | 675,764 | ||||||
| Gross margin | 4,233,661 | 3,937,699 | |||||
| Expenses: | |||||||
| Research and development(1) | 1,771,752 | 1,811,424 | |||||
| Selling and marketing(1) | 2,934,240 | 2,299,800 | |||||
| General and administrative(1) | 1,017,374 | 893,451 | |||||
| 5,723,366 | 5,004,675 | ||||||
| Loss from operations | (1,489,705 | ) | (1,066,976 | ) | |||
| Foreign exchange loss | (27,843 | ) | (9,672 | ) | |||
| Finance costs | (26,060 | ) | (28,164 | ) | |||
| Net loss and comprehensive loss | $ | (1,543,608 | ) | (1,104,812 | ) | ||
| Net loss and comprehensive loss | |||||||
| per common share basic and diluted | $ | (0.01 | ) | (0.01 | ) | ||
| Weighted average number of common shares | |||||||
| basic and diluted | 127,819,003 | 124,499,218 | |||||
| (1) Amounts include share-based compensation expense as follows: | |||||||
| Cost of revenue | $ | 5,360 | 865 | ||||
| Research and development | 101,667 | 50,077 | |||||
| Selling and marketing | 170,088 | 26,246 | |||||
| General and administrative | 151,088 | 85,349 | |||||
| Total share-based compensation expense | $ | 428,203 | 162,537 | ||||
| PRONTOFORMS CORPORATION | ||||||||
| Condensed Interim Consolidated Statements of Financial Position | ||||||||
| March 31, 2022 and December 31, 2021 | ||||||||
| (in US dollars) | ||||||||
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,431,964 | $ | 6,082,289 | ||||
| Accounts receivable | 3,266,731 | 3,199,216 | ||||||
| Investment tax credits receivable | 139,565 | 117,599 | ||||||
| Unbilled receivables | 50,187 | 36,406 | ||||||
| Related party loan receivable | 85,993 | 84,757 | ||||||
| Prepaid expenses and other receivables | 1,414,916 | 907,228 | ||||||
| Contract acquisition costs | 276,257 | 273,062 | ||||||
| 12,665,613 | 10,700,557 | |||||||
| Property, plant and equipment | 306,726 | 331,717 | ||||||
| Contract acquisition costs | 137,862 | 157,693 | ||||||
| Right-of-use asset | 339,486 | 403,143 | ||||||
| $ | 13,449,687 | $ | 11,593,110 | |||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,389,419 | $ | 2,533,743 | ||||
| Deferred revenue - current portion | 6,068,352 | 5,411,380 | ||||||
| Lease obligation - current portion | 312,229 | 303,650 | ||||||
| 8,770,000 | 8,248,773 | |||||||
| Long-term debt | 5,710,904 | 3,261,825 | ||||||
| Deferred revenue | 23,864 | 33,068 | ||||||
| Lease obligation | 107,830 | 184,766 | ||||||
| 14,612,598 | 11,728,432 | |||||||
| Shareholders' equity: | ||||||||
| Share capital | 31,293,115 | 31,141,138 | ||||||
| Contributed surplus | 864,907 | 864,907 | ||||||
| Share-based payment reserve | 2,908,710 | 2,544,668 | ||||||
| Deficit | (36,414,078 | ) | (34,870,470 | ) | ||||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||||
| (1,162,911 | ) | (135,322 | ) | |||||
| $ | 13,449,687 | $ | 11,593,110 | |||||
| PRONTOFORMS CORPORATION | |||||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||||
| For the three months ended March 31, 2022 and 2021 | |||||||||
| (in US dollars) | |||||||||
| Three months ended March 31, | |||||||||
| 2022 | 2021 | ||||||||
| Cash (used in) provided by: | |||||||||
| Operating activities: | |||||||||
| Net loss | $ | (1,543,608 | ) | $ | (1,104,812 | ) | |||
| Items not involving cash: | |||||||||
| Share-based compensation | 428,203 | 162,537 | |||||||
| Accretion on lease obligations | 6,256 | 9,953 | |||||||
| Accretion of transaction costs | 282 | 7,045 | |||||||
| Amortization of property, plant and equipment | 38,666 | 40,761 | |||||||
| Amortization of right-of-use asset | 63,657 | 63,657 | |||||||
| Unrealized foreign exchange losses | 21,949 | 12,403 | |||||||
| Other finance costs | 25,778 | 21,119 | |||||||
| Interest paid | (29,097 | ) | (23,999 | ) | |||||
| Interest received | 3,319 | 2,880 | |||||||
| Lease interest paid | (6,256 | ) | (9,953 | ) | |||||
| Changes in non-cash operating working capital items | (90,870 | ) | 1,066,816 | ||||||
| (1,081,721 | ) | 248,407 | |||||||
| Financing activities | |||||||||
| Payment of lease obligations | (74,610 | ) | (64,923 | ) | |||||
| Procceds from drawdown of credit facility | 2,402,124 | - | |||||||
| Proceeds from the exercise of options | 87,816 | 239,455 | |||||||
| 2,415,330 | 174,532 | ||||||||
| Investing activities | |||||||||
| Purchase of property, plant and equipment | (13,675 | ) | (19,753 | ) | |||||
| (13,675 | ) | (19,753 | ) | ||||||
| Effect of exchange rate changes on cash | 29,741 | 35,963 | |||||||
| Increase in cash and cash equivalents | 1,349,675 | 439,149 | |||||||
| Cash and cash equivalents, beginning of period | 6,082,289 | 7,747,542 | |||||||
| Cash and cash equivalents, end of period | $ | 7,431,964 | $ | 8,186,691 | |||||
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