ProntoForms Reports Q3 2022 Financial Results (US Dollars)
Achieves 12% annual growth in recurring revenue and third quarter growth of 5% over Q2 2022
OTTAWA, Nov. 03, 2022 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in enterprise mobile forms, announced today its third quarter (Q3) financial results for the period ended September 30th, 2022. All amounts are in US dollars unless otherwise stated.
"In Q3, our Annual Recurring Revenue (ARR) base grew by 4.5% over Q2 2022 as we continue to drive our enterprise expansion strategy. ARR growth in the enterprise segment continues to grow in absolute and proportion of total ARR as enterprise account managers hired last year become increasingly productive. We continue to allocate our resources to adding large enterprise customers as well as expanding their use of our products as they show increasing acceptance of the high ROI that we can drive in their field services activities. We had a top five global oil and gas customer expand by over $200k of ARR during the quarter to optimize production on work sites and meet strict compliance regulations. This quarter we also continued to achieve declining churn overall, led by the enterprise segment where we typically enter longer term contracts and enjoy superior renewal performance," said Alvaro Pombo, Chief Executive Officer.
"We continue to execute on our transformation plan, shifting investments towards enterprise sales while holding overall costs steady. Gross margins remain high, and when combined with the ARR growth, are reducing losses and maintain a good cash position. Field leaders are facing uncertain labor and economic conditions and need to automate faster than ever before. Eighty percent of our customer deployments are achieved in less than eight weeks: delivering reliable workflows, measurable ROI and a great technician experience,” said Alvaro Pombo, Chief Executive Officer.
“Leading enterprises recognize the benefits of mobility solutions for their field teams,” said Chairman Terence Matthews. “The challenge for them is scaling across multiple geographies, languages, use cases, and back-end systems with agility. ProntoForms has the product and team to help organizations successfully transform their global field operations.”
Financial Highlights - 2022 Third Quarter
- Recurring revenue in Q3 2022 increased by 12% to $5.23 million compared to $4.66 million in Q3 2021 and increased by 5% compared to $4.97 million in Q2 2022.
- Total revenue for Q3 2022 increased by 12% to $5.46 million compared to $4.89 million in Q3 2021 and increased by 5% compared to $5.21 million in Q2 2022.
- Gross margin for Q3 2022 was 85% of total revenue compared to 84% in Q3 2021 and 84% in Q2 2022. Gross margin on recurring revenue was 90% for Q3 2022 compared to 89% in Q3 2021 and 89% in Q2 2022.
- Operating loss for Q3 2022 was $1.07 million, up from an operating loss of $1.00 million in Q3 2021 and down from an operating loss of $1.32 million in Q2 2022.
- Net loss for Q3 2022 was $1.01 million, down from a net loss of $1.11 million in Q3 2021 and down from a net loss of $1.34 million in Q2 2022.
- As at September 30, 2022, the Company's cash and net working capital balances were $6.05 million and $2.90 million respectively with CAD $1.84 million remaining unused on its CAD $10 million debt facility.
Recent Operational Highlights
Notable new and expansion progress from enterprise customers, including:
- Energy Sector
- A top five global oil & gas enterprise expanded its deployment from $100K ARR to over $300K to ensure optimal production on work sites and safety and environmental compliance.
- Two other multi-billion-dollar oil & gas enterprises expanded their ProntoForms deployments to improve drill operations and compliance reporting.
- Manufacturing
- A Fortune 500 HVAC organization expanded its EMEA ProntoForms deployment, adding over 250 subscribers.
- A global refrigeration manufacturer and HVAC enterprise signed a new business agreement with ProntoForms to improve field asset installation and maintenance.
- Construction & Facility Management
- An $18B construction services organization expanded its ProntoForms deployment and upgraded from Advanced to Enterprise tier for site and asset inspections and reporting.
- North America's largest building materials company deployed ProntoForms and integrated the solution with its CRM platform to improve compliance adherence and reporting.
- Other Industries
- A seafood processing organization with over $350M in annual revenue signed a new business contract with ProntoForms for inspections and preventative maintenance.
- A global airline expanded its deployment of ProntoForms to support training new cabin crew and inflight service inspections.
Other highlights:
- ProntoForms won Service Council's Best Overall Solution Showcase at Service Council Symposium.
- ProntoForms hosted a digital thought leadership event with a global brand elevator & escalator enterprise on the business impacts of rapid automation. Watch the recording here.
- Alvaro Pombo, ProntoForms' CEO, delivered the chairperson’s speech at Field Service East in Hilton Head on how agile automation helps organizations overcome challenges in the field.
- ProntoForms’ EMPOWER’22 Customer Conference in Austin, Texas brought together field service leaders to share the impact of rapid automation and the future of the ProntoForms platform.
Q3 Conference Call Date:
Date: Thursday, November 3rd, 2022
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 647-484-0475
Toll-Free – (+1) 888-254-3590
Conference ID: 6223762
Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll-Free – (+1) 888-203-1112
Passcode: 6223762
Expiry Date: November 10th, 2022, at 11:59 PM EST
About ProntoForms Corporation
ProntoForms is the global leader in enterprise mobile forms. ProntoForms' platform empowers organizations with field teams that perform complex work to rapidly deploy tailored mobile forms that intuitively guide field engineers to the most effective path to service completion.
The Company's subscribers drive quantifiable business returns by harnessing the agile, scalable, and deeply integrated solution to improve compliance, field engineer productivity, and CSAT. 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 10th, 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 31st, 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 and nine months ended September 30, 2022 and 2021 | |||||||||
| (in US dollars) | |||||||||
| Three months ended Sept 30, | Nine months ended Sept 30, | ||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||
| Revenue: | |||||||||
| Recurring revenue | $ | 5,225,580 | 4,663,400 | 15,085,098 | 13,520,106 | ||||
| Professional and other services | 237,726 | 229,114 | 630,933 | 826,918 | |||||
| 5,463,306 | 4,892,514 | 15,716,031 | 14,347,024 | ||||||
| Cost of revenue:(1) | |||||||||
| Recurring revenue | 530,000 | 490,935 | 1,637,376 | 1,336,320 | |||||
| Professional and other services | 273,675 | 278,464 | 791,183 | 853,217 | |||||
| 803,675 | 769,399 | 2,428,559 | 2,189,537 | ||||||
| Gross margin | 4,659,631 | 4,123,115 | 13,287,472 | 12,157,487 | |||||
| Expenses: | |||||||||
| Research and development(1) | 1,730,394 | 1,662,040 | 5,316,920 | 5,354,452 | |||||
| Selling and marketing(1) | 3,046,357 | 2,647,524 | 8,903,340 | 7,316,475 | |||||
| General and administrative(1) | 956,917 | 810,781 | 2,947,673 | 2,616,034 | |||||
| 5,733,668 | 5,120,345 | 17,167,933 | 15,286,961 | ||||||
| Loss from operations | (1,074,037) | (997,230 | ) | (3,880,461 | ) | (3,129,474 | ) | ||
| Foreign exchange loss | 143,655 | (89,495 | ) | 145,030 | (128,442 | ) | |||
| Finance costs | (81,295 | ) | (28,165 | ) | (162,483 | ) | (86,401 | ) | |
| Net loss and comprehensive loss | $ | (1,011,677 | ) | (1,114,890 | ) | (3,897,914 | ) | (3,344,317 | ) |
| Net loss and comprehensive loss per common share basic and diluted | $ | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) |
| Weighted average number of common shares basic and diluted | 128,763,361 | 125,918,010 | 128,289,657 | 125,231,045 | |||||
| (1)Amounts include share-based compensation expense as follows: | |||||||||
| Cost of revenue | $ | (1,551 | ) | 7,047 | 8,848 | 10,261 | |||
| Research and development | 54,741 | 32,481 | 228,958 | 115,347 | |||||
| Selling and marketing | 79,756 | 60,712 | 377,664 | 101,039 | |||||
| General and administrative | 90,683 | 76,633 | 352,198 | 226,001 | |||||
| Total share-based compensation expense | $ | 223,629 | 176,873 | 967,668 | 452,648 | ||||
| PRONTOFORMS CORPORATION | ||||||
| Condensed Interim Consolidated Statements of Financial Position | ||||||
| September 30, 2022 and December 31, 2021 | ||||||
| (in US dollars) | ||||||
| September 30, | December 31, | |||||
| 2022 | 2021 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 6,045,647 | $ | 6,082,289 | ||
| Accounts receivable | 3,058,999 | 3,199,216 | ||||
| Investment tax credits receivable | 163,715 | 117,599 | ||||
| Unbilled receivables | 83,428 | 36,406 | ||||
| Related party loan receivable | 78,396 | 84,757 | ||||
| Prepaid expenses and other receivables | 1,222,424 | 907,228 | ||||
| Contract acquisition costs | 237,548 | 273,062 | ||||
| 10,890,157 | 10,700,557 | |||||
| Property, plant and equipment | 284,242 | 331,717 | ||||
| Contract acquisition costs | 117,146 | 157,693 | ||||
| Right-of-use asset | 212,172 | 403,143 | ||||
| $ | 11,503,717 | $ | 11,593,110 | |||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 2,245,573 | $ | 2,533,743 | ||
| Deferred revenue - current portion | 5,501,863 | 5,411,380 | ||||
| Lease obligation - current portion | 242,538 | 303,650 | ||||
| 7,989,974 | 8,248,773 | |||||
| Long-term debt | 5,933,742 | 3,261,825 | ||||
| Deferred revenue | - | 33,068 | ||||
| Lease obligation | - | 184,766 | ||||
| 13,923,716 | 11,728,432 | |||||
| Shareholders' equity: | ||||||
| Share capital | 32,166,781 | 31,141,138 | ||||
| Contributed surplus | 864,907 | 864,907 | ||||
| Share-based payment reserve | 3,132,262 | 2,544,668 | ||||
| Deficit | (38,768,384 | ) | (34,870,470 | ) | ||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||
| (2,419,999 | ) | (135,322 | ) | |||
| $ | 11,503,717 | $ | 11,593,110 | |||
| PRONTOFORMS CORPORATION | ||||||
| Condensed Interim Consolidated Statements of Cash Flows | ||||||
| For the nine months ended Septmber 30, 2022 and 2021 | ||||||
| (in US dollars) | ||||||
| Nine months ended September 30, | ||||||
| 2022 | 2021 | |||||
| Cash (used in) provided by: | ||||||
| Operating activities: | ||||||
| Net loss | $ | (3,897,914 | ) | $ | (3,344,317 | ) |
| Items not involving cash: | ||||||
| Share-based compensation | 967,668 | 452,648 | ||||
| Accretion on lease obligations | 15,478 | 27,575 | ||||
| Accretion of transaction costs | 7,609 | 21,135 | ||||
| Amortization of property, plant and equipment | 111,060 | 121,628 | ||||
| Amortization of right-of-use asset | 190,971 | 190,971 | ||||
| Unrealized foreign exchange loss (gain) | (338,289 | ) | 120,086 | |||
| Other finance costs | 154,874 | 65,266 | ||||
| Interest paid | (175,760 | ) | (74,438 | ) | ||
| Interest received | 20,886 | 9,173 | ||||
| Lease interest paid | (15,478 | ) | (27,575 | ) | ||
| Changes in non-cash operating working capital items | (422,811 | ) | 644,390 | |||
| (3,381,706 | ) | (1,793,458 | ) | |||
| Financing activities | ||||||
| Payment of lease obligations | (224,653 | ) | (204,918 | ) | ||
| Payment of loan renewal fee | (7,528 | ) | - | |||
| Procceds from drawdown of credit facility | 3,178,124 | - | ||||
| Proceeds from the exercise of options | 645,569 | 947,379 | ||||
| 3,591,512 | 742,461 | |||||
| Investing activities | ||||||
| Purchase of property, plant and equipment | (63,585 | ) | (65,707 | ) | ||
| (63,585 | ) | (65,707 | ) | |||
| Effect of exchange rate changes on cash | (182,863 | ) | (118,769 | ) | ||
| Decrease in cash and cash equivalents | (36,642 | ) | (1,235,473 | ) | ||
| Cash and cash equivalents, beginning of period | 6,082,289 | 7,747,542 | ||||
| Cash and cash equivalents, end of period | $ | 6,045,647 | $ | 6,512,069 | ||
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