Subscription revenues increased to $1.38 million, up 34% from Q1-22
FY22 Highlights
- For the three months ended
March 31, 2023 , total revenues are up 26% over Q1-22, at$1.89 million , compared to$1.50 million . - Subscription revenues showed strong growth for Q1-23, up 34% to
$1.38 million , compared to$1.03 million for Q1-22. - Professional services revenue in Q1-23 was
$0.51 million , compared with$0.47 million for Q1- 22. - Annual Recurring Revenue ("ARR") under contract increased to
$6.15 million atMarch 31, 2023 , compared to$6.01 million atDecember 31, 2022 , and$4.16 million atDecember 31, 2021 . - Adjusted EBITDA was a loss of
$0.83 million in Q1-23, compared to a loss of$0.77 million in Q1-22.
Chief Executive Officer, Silas Garrison, commented on the first quarter's financial results.
"Q1 of FY23 showed tangible growth in recognized revenue, particularly that of subscription revenue. This is the result of the sustained momentum built over the past several years. We have accelerated growth and operational efficiency such that subscription revenue growth continues to outpace growth in expenses on a year-over-year basis.
We expect to continue our strong pace of sales, with numerous contracts awarded and pending final execution. The sales team is outperforming and regularly bringing new opportunities to the table as quickly as contracts are awarded.
Subsequent to Q1-23, our fully executed contracts will contribute a combined average ARR of
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.
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. EBITDA is defined and calculated as net loss adjusted to remove interest, taxes, depreciation and amortization.
HS GovTech Solutions Inc.
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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