HS GovTech has seen a strong start to 2023 as demand continues to be strong, especially post pandemic. The Company has seen stronger Q1 demand and growth rate at this point than any prior year. Additionally, HSPay growth and adoption rate continues to accelerate.
HSPay
As the solution continues to grow in deployment, the Company is seeing a marked increase in Total Processed Volume ("TPV"). As of the date of this release:
- TPV has exceeded all of 2022 processing volume
- Company is increasing its onboarding velocity and has on boarded an additional six agencies since the start of the year, with another six pending deployment for the remainder of Q1
- The average TPV has increased to
$75,000 per week, up from$25,000 per week as reported onDecember 21, 2022 .
Sales Momentum
- Total Contract Value ("TCV") for deals that are either executed as of midway point of Q1 ("Fully Executed") or awarded for execution ("Awarded") as of the midway point of Q1 stands at
$5.7 million .
Sole Source Trend and New Market Verticals
- The Company is in the process of executing its first deal in the Code Enforcement vertical. This new win will allow the Company to begin to meaningfully pursue a new agency vertical for HSCloud Suite.
- The Company continues to see an increase in contracts executing via sole source procurement, as opposed to the traditional Request for Proposal ("RFP") route. This is an indicator of the strength of the Company's platform as well as its market reach in numerous geographic regions. In order to procure a system via sole source, agencies must prove that there is no realistically viable secondary option that would be surfaced through an RFP. Further, an agency typically must tie this analysis to backup information, including verification of other neighboring agencies already contracting for the solution desired.
Chief Executive Officer,
Non-IFRS Measures
ARR is a non-IFRS measure that provides an indication of the subscription revenue from customers that is expected from continued usage per the term of contract signed, and as such management believes ARR to be a meaningful measure for assessment of Company performance. Key assumptions related to ARR figures are from continued usage of the services over the life of the agreement, with the calculation based on the annual average of subscription revenues over the life of the agreement.
HS GovTechTM is an industry leading software as a service company serving the state, provincial and local government market across
Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although HS GovTechTM believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. HS GovTechTM expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE
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