ProntoForms Reports Q3 2021 Financial Results
Achieves 15% annual growth in recurring revenue over Q3 2020
OTTAWA, Nov. 04, 2021 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its third quarter (Q3) financial results for the period ended September 30, 2021.
“We are pleased to report that our Annual Recurring Revenue Base (ARR) increased by 3.2% in the 2021 third quarter following increases of 4.7% and 4.2% in the first and second quarters. The Q3 growth in bookings was reduced by approximately 1.1% caused by a discontinuation of our Mexico operator reseller agreement. Our base is now $19.2 million and overall customer usage continues to be resilient with 41% of our base from customers with greater than $100,000 of ARR. We continue to steadily add new, large customer logos with good expansion profiles,” said Alvaro Pombo, Founder and Chief Executive Officer.
Mr. Pombo continued, “We are encouraged by the continued steady growth in net bookings and enterprise opportunities. Our platform continues to provide value to world-class enterprise organizations thanks to our continued investment in vertical product solutions, platform capabilities, and enterprise go-to-market. This quarter was marked by our user conference, EMPOWER’21 - sessions featured Fortune 500 field service leaders, Service Council and ServiceMax, industry analysts, and ProntoForms product experts. During this event, ProntoForms’ new customer community was also announced and officially launched.”
“The number and pedigree of enterprise customers here at Prontoforms is impressive and through personal discussions they are very pleased with how the solution meets their business requirements, especially in the field,” said Mike Kramer, Chief Revenue Officer. “We have enormous potential for geographic and use-case expansion for these existing and new enterprise customers that continue to come onboard and often see hard ROI in excess of 100% within the first year.”
Financial Highlights – 2021 Third Quarter
- Recurring revenue in Q3 2021 increased by 15% to $4.66 million compared to $4.06 million in Q3 2020, and increased by 2% compared to $4.55 million in Q2 2021.
- Total revenue for Q3 2021 increased by 8% to $4.89 million compared to $4.55 million in Q3 2020, and increased by 1% compared to $4.84 million in Q2 2021.
- Gross margin for Q3 2021 was 84% of total revenue compared to 82% in Q3 2020 and 85% in Q2 2021. Gross margin on recurring revenue was 89% for Q3 2021 compared to 91% in Q3 2020 and 90% in Q2 2021.
- Operating loss for Q3 2021 was $1.00 million, up from an operating loss of $0.49 million in Q3 2020 and down from an operating loss of $1.07 million in Q2 2021.
- Net loss for Q3 2021 was $1.11 million, up from a net loss of $0.61 million in Q3 2020 and remained flat from a net loss of $1.12 million in Q2 2021.
- As at September 30, 2021, ProntoForms’ cash and net working capital balances were $6.51 million and $3.20 million respectively, compared to $7.75 million and $5.10 million as at December 31, 2020.
Recent Operational Highlights
- Notable new and expansion progress from enterprise customers, including:
- A Fortune 500 oil & gas company deployed ProntoForms in partnership with a leading EHS and quality solution to 700 field technicians to support their asset compliance and leak inspection workflows.
- A Fortune 500 energy supplier deployed ProntoForms to their technicians to achieve step-by-step delivery workflows, transparent customer service, and report generation capabilities.
- A Fortune 500 building material supplier expanded their commitment to ProntoForms by over 150 subscriptions. They use ProntoForms for quality and safety inspections with data collection that fuels operational analytics.
- A global leader in fuel storage deployed ProntoForms to support their QA inspections and asset management workflows. ProntoForms is connected to their field service management platform.
- ProntoForms EMPOWER’21 user conference occurred on September 1st, with over 700 registrants for the digital event.
- New features and improvements to the ProntoForms platform, including:
- Data Routing that provides simple tools to process complex data that flows into a form and to use it to run the business logic in that form, automating as much of the process in the field as possible.
- Mobile search enhancements including additional search parameters and a Recent Searches list to increase the efficiency of our mobile search capabilities.
- ProntoForms Teamwork Direct Transfer that enables a mobile user to transfer a partially completed form to the user of their choosing with the form appears in that person’s inbox.
ProntoForms will hold a conference call on November 4th, at 9:00am EST hosted by CEO Alvaro Pombo and CFO Dave Croucher. A question and answer session will follow.
Date: Thursday, November 4th, 2021
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 647-792-1240
Toll Free – (+1) 866-269-4262
Conference ID: 7363323
Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 7363323
Expiry Date: November 11th, 2021 at 11:59pm EST
A live audio webcast and archive of the conference call will be available by visiting the Company’s website at www.prontoforms.com/company/investor-relations. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
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, the potential for geographic and use-case expansion these existing and new enterprise customers, ROI levels experienced by customers 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, its partnering strategy may not generate increasing lead flow or maintain current lead flow levels 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. Annual Recurring Revenue Base is a key performance indicator used by the Company which does do not have a definition in IFRS and may be calculated in a manner different from similar key performance indicators used by other companies. Please refer to the Company’s most recent management discussion and analysis available at www.sedar.com for a discussion of the Company’s use and method of calculation of key performance indicators such as Annual Recurring Revenue Base. 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 16, 2018 found at www.sedar.com for a discussion of such factors.
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 Income (Loss) and Comprehensive Income (Loss) | |||||||||||||||
| For the three and nine months ended September 30 2021 and 2020 | |||||||||||||||
| (in US dollars) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenue: | |||||||||||||||
| Recurring revenue | $ | 4,663,400 | 4,056,073 | $ | 13,520,106 | 11,888,948 | |||||||||
| Professional and other services | 229,114 | 494,364 | 826,918 | 1,066,547 | |||||||||||
| 4,892,514 | 4,550,437 | 14,347,024 | 12,955,495 | ||||||||||||
| Cost of revenue (1): | |||||||||||||||
| Recurring revenue | 490,935 | 370,730 | 1,336,320 | 968,395 | |||||||||||
| Professional and other services | 278,464 | 450,433 | 853,217 | 964,533 | |||||||||||
| 769,399 | 821,163 | 2,189,537 | 1,932,928 | ||||||||||||
| Gross margin | 4,123,115 | 3,729,274 | 12,157,487 | 11,022,567 | |||||||||||
| Expenses: | |||||||||||||||
| Research and development (1) | 1,662,040 | 1,480,276 | 5,354,452 | 3,823,516 | |||||||||||
| Selling and marketing (1) | 2,647,524 | 1,991,105 | 7,316,475 | 5,402,342 | |||||||||||
| General and administrative (1) | 810,781 | 750,383 | 2,616,034 | 2,179,434 | |||||||||||
| 5,120,345 | 4,221,764 | 15,286,961 | 11,405,292 | ||||||||||||
| Income (loss) from operations | (997,230 | ) | (492,490 | ) | (3,129,474 | ) | (382,725 | ) | |||||||
| Foreign exchange (loss) gain | (89,495 | ) | (14,221 | ) | (128,442 | ) | 108,884 | ||||||||
| Finance costs | (28,165 | ) | (103,000 | ) | (86,401 | ) | (296,094 | ) | |||||||
| Net income (loss) and comprehensive income (loss) | $ | (1,114,890 | ) | (609,711 | ) | $ | (3,344,317 | ) | (569,935 | ) | |||||
| Net income (loss) and comprehensive income (loss) | |||||||||||||||
| per common share basic and diluted | $ | (0.01 | ) | (0.01 | ) | $ | (0.03 | ) | (0.00 | ) | |||||
| Weighted average number of common shares | |||||||||||||||
| basic and diluted | 125,918,010 | 117,666,390 | 125,231,045 | 118,536,260 | |||||||||||
| (1) Amounts include share-based compensation expense as follows: | |||||||||||||||
| Cost of revenue | $ | 7,047 | $ | 11,823 | $ | 10,261 | $ | 41,520 | |||||||
| Research and development | 32,481 | 46,455 | 115,347 | 98,373 | |||||||||||
| Selling and marketing | 60,712 | 38,762 | 101,039 | 107,587 | |||||||||||
| General and administrative | 76,633 | 50,975 | 226,001 | 146,804 | |||||||||||
| Total share-based compensation expense | $ | 176,873 | $ | 148,015 | $ | 452,648 | $ | 394,284 | |||||||
| PRONTOFORMS CORPORATION | ||||||||||
| Condensed Interim Consolidated Statements of Financial Position | ||||||||||
| September 30, 2021 and December 31, 2020 | ||||||||||
| (in US dollars) | ||||||||||
| September 30, | December 31, | |||||||||
| 2021 | 2020 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 6,512,069 | $ | 7,747,542 | ||||||
| Accounts receivable | 2,568,265 | 3,333,139 | ||||||||
| Investment tax credits receivable | 175,525 | 117,092 | ||||||||
| Unbilled receivables | 123,721 | 235,518 | ||||||||
| Related party loan receivable | 84,338 | 84,392 | ||||||||
| Prepaid expenses and other receivables | 1,117,722 | 738,415 | ||||||||
| Contract acquisition costs | 225,786 | 214,583 | ||||||||
| 10,807,426 | 12,470,681 | |||||||||
| Property, plant and equipment | 351,601 | 407,522 | ||||||||
| Contract acquisition costs | 80,163 | 28,950 | ||||||||
| Right-of-use asset | 466,800 | 657,771 | ||||||||
| $ | 11,705,990 | $ | 13,564,924 | |||||||
| Liabilities and Shareholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 2,782,402 | $ | 2,434,376 | ||||||
| Deferred revenue - current portion | 4,530,012 | 4,657,581 | ||||||||
| Lease obligation - current portion | 298,131 | 274,312 | ||||||||
| 7,610,545 | 7,366,269 | |||||||||
| Long-term debt | 3,238,537 | 3,219,484 | ||||||||
| Deferred revenue | 47,418 | - | ||||||||
| Lease obligation | 260,911 | 486,302 | ||||||||
| 11,157,411 | 11,072,055 | |||||||||
| Shareholders' equity: | ||||||||||
| Share capital | 31,097,291 | 28,342,861 | ||||||||
| Contributed surplus | 864,907 | 864,907 | ||||||||
| Share-based payment reserve | 2,152,545 | 3,506,948 | ||||||||
| Warrant reserve | - | - | ||||||||
| Deficit | (33,750,599 | ) | (30,406,282 | ) | ||||||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||||||
| 548,579 | 2,492,869 | |||||||||
| $ | 11,705,990 | $ | 13,564,924 | |||||||
| PRONTOFORMS CORPORATION | ||||||||||
| Condensed Interim Consolidated Statements of Cash Flows | ||||||||||
| For the nine months ended September 30, 2021 and 2020 | ||||||||||
| (in US dollars) | ||||||||||
| Nine months ended September 30, | ||||||||||
| 2021 | 2020 | |||||||||
| Cash provided by (used in): | ||||||||||
| Operating activities: | ||||||||||
| Net income (loss) | $ | (3,344,317 | ) | $ | (569,935 | ) | ||||
| Items not involving cash: | ||||||||||
| Share-based compensation | 452,648 | 394,284 | ||||||||
| Accretion on long-term debt | - | 141,527 | ||||||||
| Accretion on lease obligations | 27,575 | 35,151 | ||||||||
| Accretion of transaction costs | 21,135 | - | ||||||||
| Change in fair value of derivative liability | - | 2,794 | ||||||||
| Amortization of property, plant and equipment | 121,628 | 119,380 | ||||||||
| Amortization of right-of-use asset | 190,971 | 190,971 | ||||||||
| Unrealized foreign exchange losses (gains) | 120,086 | (144,741 | ) | |||||||
| Other finance costs | 65,266 | 151,773 | ||||||||
| Interest paid | (74,438 | ) | (159,576 | ) | ||||||
| Interest received | 9,173 | 7,803 | ||||||||
| Lease interest paid | (27,575 | ) | (35,151 | ) | ||||||
| Changes in non-cash operating working capital items | 644,390 | (158,230 | ) | |||||||
| (1,793,458 | ) | (23,950 | ) | |||||||
| Financing activities | ||||||||||
| Payment of lease obligations | (204,918 | ) | (176,926 | ) | ||||||
| Settlement of derivative liability | - | (50,075 | ) | |||||||
| Proceeds from the exercise of options | 947,379 | 249,240 | ||||||||
| 742,461 | 22,239 | |||||||||
| Investing activities | ||||||||||
| Purchase of property, plant and equipment | (65,707 | ) | (59,184 | ) | ||||||
| (65,707 | ) | (59,184 | ) | |||||||
| Effect of exchange rate changes on cash | (118,769 | ) | 45,713 | |||||||
| Decrease in cash and cash equivalents | (1,235,473 | ) | (15,182 | ) | ||||||
| Cash and cash equivalents, beginning of period | 7,747,542 | 5,700,003 | ||||||||
| Cash and cash equivalents, end of period | $ | 6,512,069 | $ | 5,684,821 | ||||||
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