Our growth rate of annualized recurring revenue (“ARR”) over prior year comparable quarters accelerated for the third quarter in a row to reach 13%, and 14% for total revenue, despite bookings that were relatively light for Q1 with no significant new enterprise wins,” said
“The recent release of the Multi-Language Add-On exemplifies the company's ongoing commitment to addressing the needs of diverse and globally distributed field organizations,” said
Financial Highlights – 2023 First Quarter (All results in USD)
- Recurring revenue in Q1 2023 increased by 11% to
$5.43 million compared to$4.89 million in Q1 2022 and increased by 3% compared to$5.29 million in Q4 2022. - Total revenue for Q1 2023 increased by 14% to
$5.77 million compared to$5.04 million in Q1 2022 and increased by 3% compared to$5.61 million in Q4 2022.
- Gross margin for Q1 2023 was 86% of total revenue compared to 84% in Q1 2022 and 87% in Q4 2022. Gross margin on recurring revenue was 90% for Q1 2023 compared to 89% in Q1 2022 and 91% in Q4 2022.
- Operating loss for Q1 2023 was
$1.04 million , down from an operating loss of$1.49 million in Q1 2022 and up from an operating loss of$0.45 million in Q4 2022. - Net loss for Q1 2023 was
$1.13 million , down from a net loss of$1.54 million in Q1 2022 and up from a net loss of$0.55 million in Q4 2022.
Recent Operational Highlights
Notable new and expansion progress from enterprise customers, including:
- A subsidiary of a Global Fortune 500 medical manufacturing company committed to just over
$3M in subscription services over 3.5 years commencingApril 2023 . Their deployment manages workflows for the installation of new machines globally. - A Fortune 500 industrial manufacturing enterprise renewed their subscription of 12,000 users to support service across their North American operations.
- A European global manufacturing enterprise invested in the Multi-Language Add-On Package and renewed a 470 user deployment of
ProntoForms to support preventative maintenance. - A utilities enterprise, and division of one of the largest global construction organizations, signed on for an initial deployment of 150 users with further expansions continuing post-initial deployment.
Other Highlights
- Co-CEO
Alvaro Pombo was the chairperson speaker at Field Service Medical inSan Diego where he discussed leveraging technology to commercialize and scale service. - Co-CEO
Alvaro Pombo was also the chairperson speaker atField Service Palm Springs , one of the industry’s largest events, where he discussed contextual field intelligence and its central role to thriving within today’s challenging field service landscape. ProntoForms has announced its 5th annual EMPOWER event, EMPOWER’23, inOttawa, Ontario onMay 16 th and 17th. An inaugural European expansion of the event, EMPOWER’23Europe , was also announced to bring service executives across all major verticals together inLondon onJune 6 th.ProntoForms was announced as the #1 choice in G2’s Mobile Forms Automation Grid Report for Spring 2023.ProntoForms released aNucleus Research report for a floating liquid natural gas facility (FLNG) belonging to a global 500 company that usesProntoForms to automate its natural gas safety inspection forms for an ROI of 332%.
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About
The Company is based in
For additional information, please contact:
co-Chief Executive Officer 416.702.3974 pdeck@prontoforms.com | Chief Financial Officer 613-286-9212 dcroucher@prontoforms.com |
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, 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
Neither
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | ||||||||
For the three months ended | ||||||||
(in US dollars) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Revenue: | ||||||||
Recurring revenue | $ | 5,428,736 | $ | 4,890,716 | ||||
Professional and other services | 343,117 | 150,394 | ||||||
5,771,853 | 5,041,110 | |||||||
Cost of revenue (1): | ||||||||
Recurring revenue | 520,103 | 552,072 | ||||||
Professional and other services | 265,593 | 255,377 | ||||||
785,696 | 807,449 | |||||||
Gross margin | 4,986,157 | 4,233,661 | ||||||
Expenses: | ||||||||
Research and development (1) | 1,735,545 | 1,771,752 | ||||||
Selling and marketing (1) | 2,864,681 | 2,934,240 | ||||||
General and administrative (1) | 1,421,649 | 1,017,374 | ||||||
6,021,875 | 5,723,366 | |||||||
Loss from operations | (1,035,718 | ) | (1,489,705 | ) | ||||
Foreign exchange loss | (9,793 | ) | (27,843 | ) | ||||
Finance Income | 33,325 | 3,319 | ||||||
Finance costs | (116,080 | ) | (29,379 | ) | ||||
Net loss and comprehensive loss | $ | (1,128,266 | ) | (1,543,608 | ) | |||
Net loss and comprehensive loss | ||||||||
per common share basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||
Weighted average number of common shares | ||||||||
basic and diluted | 130,081,341 | 127,819,003 | ||||||
(1) Amounts include share-based compensation expense as follows: | ||||||||
Cost of revenue | $ | 6,199 | $ | 5,359 | ||||
Research and development | 50,964 | 101,667 | ||||||
Selling and marketing | 35,429 | 170,088 | ||||||
General and administrative | 152,684 | 151,088 | ||||||
Total share-based compensation expense | $ | 245,277 | $ | 428,203 | ||||
Condensed Interim Consolidated Statements of Financial Position | ||||||||
as at | ||||||||
(in US dollars) | ||||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,041,930 | $ | 6,112,071 | ||||
Accounts receivable | 2,176,952 | 4,179,088 | ||||||
Investment tax credits receivable | 129,307 | 197,553 | ||||||
Unbilled receivables | 72,419 | 88,453 | ||||||
Related party loan receivable | 79,395 | 79,331 | ||||||
Prepaid expenses and other receivables | 1,621,582 | 1,077,015 | ||||||
Contract acquisition costs | 309,265 | 311,494 | ||||||
11,430,850 | 12,045,005 | |||||||
Property, plant and equipment | 282,499 | 286,834 | ||||||
Contract acquisition costs | 167,484 | 190,585 | ||||||
Right-of-use asset | 84,858 | 148,515 | ||||||
$ | 11,965,691 | $ | 12,670,939 | |||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,100,692 | $ | 2,686,288 | ||||
Deferred revenue | 7,323,106 | 6,508,986 | ||||||
Lease obligation | 99,568 | 172,947 | ||||||
9,523,366 | 9,368,221 | |||||||
Long-term debt | 6,015,292 | 6,007,585 | ||||||
15,538,658 | 15,375,806 | |||||||
Shareholders' deficit: | ||||||||
Share capital | 32,188,618 | 32,166,781 | ||||||
Contributed surplus | 864,907 | 864,907 | ||||||
Share-based payment reserve | 3,636,575 | 3,398,246 | ||||||
Deficit | (40,447,502 | ) | (39,319,236 | ) | ||||
Accumulated other comprehensive income | 184,435 | 184,435 | ||||||
(3,572,967 | ) | (2,704,867 | ) | |||||
$ | 11,965,691 | $ | 12,670,939 | |||||
Condensed Interim Consolidated Statements of Cash Flows | |||||||||
For the three months ended | |||||||||
(in US dollars) | |||||||||
Three months ended | |||||||||
2023 | 2022 | ||||||||
Cash used in: | |||||||||
Operating activities: | |||||||||
Net loss | $ | (1,128,266 | ) | $ | (1,543,608 | ) | |||
Items not involving cash: | |||||||||
Share-based compensation | 245,277 | 428,203 | |||||||
Accretion on lease obligations | 2,004 | 6,256 | |||||||
Accretion of transaction costs | 2,809 | 282 | |||||||
Amortization of property, plant and equipment | 34,567 | 38,666 | |||||||
Amortization of right-of-use asset | 63,657 | 63,657 | |||||||
Unrealized foreign exchange loss | 9,533 | 21,949 | |||||||
Other finance costs | 77,946 | 25,778 | |||||||
Interest paid | (111,271 | ) | (29,097 | ) | |||||
Interest received | 33,325 | 3,319 | |||||||
Changes in non-cash operating working capital items | 1,795,703 | (90,870 | ) | ||||||
1,025,284 | (1,075,465 | ) | |||||||
Financing activities | |||||||||
Payment of lease obligations | (73,796 | ) | (74,610 | ) | |||||
Lease interest paid | (2,004 | ) | (6,256 | ) | |||||
Procceds from drawdown of credit facility | - | 2,402,124 | |||||||
Proceeds from the exercise of options | 14,889 | 87,816 | |||||||
(60,911 | ) | 2,409,074 | |||||||
Investing activities | |||||||||
Purchase of property, plant and equipment | (30,232 | ) | (13,675 | ) | |||||
(30,232 | ) | (13,675 | ) | ||||||
Effect of exchange rate changes on cash | (4,282 | ) | 29,741 | ||||||
Increase in cash and cash equivalents | 929,859 | 1,349,675 | |||||||
Cash and cash equivalents, beginning of period | 6,112,071 | 6,082,289 | |||||||
Cash and cash equivalents, end of period | $ | 7,041,930 | $ | 7,431,964 | |||||
Source:
2023 GlobeNewswire, Inc., source