OTTAWA, March 11, 2021 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its annual and fourth quarter (Q4) financial results for the period ended December 31, 2020.
“2020 was a challenging year for everyone, however, we saw resilience in our customers to adapt and continue to provide high-quality, safe service delivery in the field. Our business reflected the resilience of our customers and our employees,” said Alvaro Pombo, Founder and Chief Executive Officer of ProntoForms. “While we saw steady growth in our Annualized Recurring Revenue (“ARR”) base coming into 2020, our first quarter of 2020 showed roughly flat sequential growth due to increased churn—mainly in SMB—in the early stages of the pandemic. We saw improved growth in the second and third quarters as enterprise bookings improved. We then saw continued improvement in bookings in the fourth quarter, but this was offset by a decrease in our base of approximately 6% caused by a mutually agreed upon discontinuation of our AT&T reseller agreement. This isolated churn event meant our ARR base only increased by 1% in the fourth quarter but left us with a much stronger base of direct customers with term contracts that can continue to grow. We thank AT&T for their valued partnership over many years.”
Mr. Pombo continued, “We look forward to 2021 and we do so with clarity on our business strategy. We made great progress on our go-to-market framework by empowering frontline workers with powerful mobile solutions, focusing on key verticals where ProntoForms demonstrates rapid adoption, and tightening execution on new logo acquisition and existing customer expansion—including sales with our strong partners. As we prepare for the next level of growth, we do so with a strengthened balance sheet, a proven resilience, a tighter go to market, and a stronger than ever customer base to grow upon.”
Financial Highlights – 2020 Year
- Recurring revenue for the year-ended December 31, 2020 increased by 18% to $16.19 million compared to $13.74 million for 2019.
- Total revenue for the year-ended December 31, 2020 increased by 17% to $17.67 million compared to $15.10 million for 2019.
- Gross margin for 2020 was $15.03 million or 85% of total revenue compared to $12.56 million (83%) in 2019. Gross margin on recurring revenue was 92% for 2020 compared to 90% for 2019.
- Loss from operations was $0.96 million, for the year-ended December 31, 2020 down from $1.86 million for 2019.
- Net loss for the year-ended December 31, 2020 was $1.49 million, down from a net loss of $2.27 million in 2019.
- As at December 31, 2020, the Company’s cash and net working capital balances were $7.75 million and $5.10 million respectively.
Financial Highlights - 2020 Fourth Quarter
- Recurring revenue in Q4 2020 increased by 14% to $4.31 million compared to $3.77 million in Q4 2019, and increased by 6% compared to $4.06 million in Q3 2020.
- Total revenue for Q4 2020 increased by 16% to $4.71 million compared to $4.07 million in Q4 2019, and increased by 4% compared to $4.55 million in Q3 2020.
- Gross margin for Q4 2020 was 85% of total revenue compared to 84% in Q4 2019 and 82% in Q3 2020. Gross margin on recurring revenue was 91% for Q4 2020 compared to 90% in Q4 2019 and 91% in Q3 2020.
- Operating loss for Q4 2020 was $0.57 million, down from an operating loss of $0.58 million in Q4 2019 and up from an operating loss of $0.49 million in Q3 2020.
- Net loss for Q4 2020 was $0.92 million, up from a net loss of $0.78 million in Q4 2019 and up from a net loss of $0.61 million in Q3 2020.
Recent Operational Highlights
- Notable new and expansion progress from enterprise customers, including:
- A global business consulting firm expanded its ProntoForms users by 22,000 to help frontline workers collect rich data for 500,000+ energy audit inspections designed to improve energy efficiency and meet government environmental impact targets.
- A multi-billion global medical device manufacturing company deployed ProntoForms to over 850 frontline workers to improve field processes and quality control.
- A global medical radiation device manufacturer deployed ProntoForms to 400 field engineers to improve hospital radiation asset uptime and expand services. The deployment integrates directly with their leading field service management and financial systems, allowing technicians to identify opportunities for new services and generate accurate quoting and billing documents for customers.
- A global heavy manufacturing organization deployed ProntoForms to 410 field technicians. The deployment integrates with their current field service management system.
- One of ProntoForms’ largest customers, a global HVAC organization, expanded their European deployment of ProntoForms by 80 subscriptions. They use ProntoForms to increase technician productivity and reduce asset downtime.
- ProntoForms, together with Service Council, hosted a digital transformation Zoom event for field service leaders, featuring field operation executives from medical device and heavy manufacturing organizations.
- ProntoForms’ CEO Alvaro Pombo and an executive from one of the largest food processing companies in America discussed how to calculate next steps for organizations responding to COVID-19 at WBR Field Service Connect.
- ProntoForms’ customer PURELL/GOJO’s story was highlighted in a Salesforce blog post “24 Apps that Led to Pandemic Superpowers in 2020” and a Salesforce eBook titled “Inspiring Insights From Our Year Inside.”
- ProntoForms launched the new Teamwork feature that increases collaboration between field technicians. This feature is highly sought after by organizations with sophisticated asset processes that involve multiple technicians.
Q4 Conference Call Date:
Date: Thursday, March 11th, 2021
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 38563980
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 563980 #
Expiry Date: Thursday, March 18th, 2021 at 11:59pm EST
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 apombo@prontoforms.com | Babak Pedram Investor Relations Virtus Advisory Group Inc. 416-644-5081 bpedram@virtusadvisory.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 March 10, 2021 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 31, 2020 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 | |||||||||||
| Consolidated statements of loss and comprehensive loss | |||||||||||
| Years ended December 31, 2020 and 2019 | |||||||||||
| (in United States dollars) | |||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| $ | $ | $ | $ | ||||||||
| Revenue | |||||||||||
| Recurring revenue | 4,305,505 | 3,774,576 | 16,194,453 | 13,740,141 | |||||||
| Professional and other services | 405,080 | 295,890 | 1,471,627 | 1,363,778 | |||||||
| 4,710,585 | 4,070,466 | 17,666,080 | 15,103,919 | ||||||||
| Cost of Revenue (1) | |||||||||||
| Recurring revenue | 374,145 | 378,033 | 1,342,540 | 1,415,331 | |||||||
| Professional and other services | 325,060 | 280,449 | 1,289,593 | 1,129,826 | |||||||
| 699,205 | 658,482 | 2,632,133 | 2,545,157 | ||||||||
| Gross Margin | 4,011,380 | 3,411,984 | 15,033,947 | 12,558,762 | |||||||
| Expenses | |||||||||||
| Research and development (1) | 1,582,595 | 1,279,563 | 5,406,112 | 4,794,386 | |||||||
| Selling and marketing (1) | 2,043,448 | 1,903,309 | 7,445,790 | 6,797,303 | |||||||
| General and administrative (1) | 959,488 | 811,683 | 3,138,922 | 2,824,708 | |||||||
| 4,585,531 | 3,994,555 | 15,990,824 | 14,416,397 | ||||||||
| Loss from operations | (574,151 | ) | (582,571 | ) | (956,877 | ) | (1,857,635 | ) | |||
| Foreign exchange (loss) gain | (51,165 | ) | (61,474 | ) | 49,916 | (80,780 | ) | ||||
| Finance costs | (289,914 | ) | (137,346 | ) | (578,206 | ) | (327,063 | ) | |||
| Net loss and comprehensive loss | (915,230 | ) | (781,391 | ) | (1,485,167 | ) | (2,265,478 | ) | |||
| Net comprehensive loss per common share | |||||||||||
| basic and diluted | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | |||
| Weighted average number of common shares | |||||||||||
| basic and diluted | 122,222,924 | 117,259,797 | 118,676,861 | 112,880,284 | |||||||
| (1) Amounts include share-based compensation expense as follows (in thousands): | |||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| $ | $ | $ | $ | ||||||||
| Cost of revenue | 2,626 | 26,468 | 44,145 | 59,358 | |||||||
| Research and development | 49,207 | 34,720 | 147,581 | 82,472 | |||||||
| Selling and marketing | 79,417 | 53,346 | 187,004 | 148,086 | |||||||
| General and administrative | 101,697 | 64,781 | 248,500 | 164,473 | |||||||
| Total share-based compensation expense | 232,947 | 179,315 | 627,230 | 454,389 | |||||||
| ProntoForms Corporation | ||||||
| Consolidated statements of financial position | ||||||
| as at December 31, 2020 and 2019 | ||||||
| (in United States dollars) | ||||||
| December 31, | December 31, | |||||
| 2020 | 2019 | |||||
| $ | $ | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 7,747,542 | 5,700,003 | ||||
| Accounts receivable | 3,333,139 | 2,538,530 | ||||
| Investment tax credits receivable | 117,092 | 185,213 | ||||
| Unbilled receivables | 235,518 | 197,264 | ||||
| Related party loan receivable | 84,392 | 82,694 | ||||
| Prepaid expenses and other receivables | 738,415 | 889,053 | ||||
| Contract acquisition costs | 214,583 | 87,486 | ||||
| 12,470,681 | 9,680,243 | |||||
| Property, plant and equipment | 407,522 | 481,242 | ||||
| Contract acquisition costs | 28,950 | 54,851 | ||||
| Right-of-use asset | 657,771 | 912,399 | ||||
| 13,564,924 | 11,128,735 | |||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 2,434,376 | 2,493,913 | ||||
| Deferred revenue | 4,657,581 | 3,562,816 | ||||
| Derivative liability - current portion | - | 65,041 | ||||
| Lease obligation - current portion | 274,312 | 246,517 | ||||
| 7,366,269 | 6,368,287 | |||||
| Long-term debt | 3,219,484 | 2,717,146 | ||||
| Lease obligation | 486,302 | 745,599 | ||||
| Derivative liability | - | 61,524 | ||||
| 11,072,055 | 9,892,556 | |||||
| Shareholders' equity | ||||||
| Share capital | 28,342,861 | 25,069,032 | ||||
| Contributed surplus | 864,907 | 864,907 | ||||
| Share-based payment reserve | 3,506,948 | 3,345,960 | ||||
| Warrant reserve | - | 692,960 | ||||
| Deficit | (30,406,282 | ) | (28,921,115 | ) | ||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||
| 2,492,869 | 1,236,179 | |||||
| 13,564,924 | 11,128,735 | |||||
| ProntoForms Corporation | |||||||||||
| Consolidated statements of cash flows | |||||||||||
| Years ended December 31, 2020 and 2019 | |||||||||||
| (in United States dollars) | |||||||||||
| Three months ended | Year ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| $ | $ | $ | $ | ||||||||
| Operating activities | |||||||||||
| Net loss | (915,232 | ) | (781,391 | ) | (1,485,167 | ) | (2,265,478 | ) | |||
| Items not affecting cash | |||||||||||
| Share-based compensation | 232,947 | 179,315 | 627,230 | 454,389 | |||||||
| Accretion on long-term debt | 17,303 | 44,940 | 158,830 | 167,819 | |||||||
| Loss on early extinguishment of debt | 192,347 | - | 192,347 | − | |||||||
| Amortization of transaction costs | 4,697 | - | 4,697 | − | |||||||
| Accretion on lease obligations | 10,553 | 13,528 | 45,704 | 59,925 | |||||||
| Change in fair value of derivative liability | 476 | 40,838 | 3,270 | (50,458 | ) | ||||||
| Amortization of property, plant and equipment | 40,005 | 38,084 | 159,385 | 132,615 | |||||||
| Amortization of right-of-use asset | 63,657 | 67,597 | 254,628 | 269,800 | |||||||
| Unrealized foreign exchange (gains) losses | 102,524 | 56,210 | (42,217 | ) | 107,899 | ||||||
| Loss from disposal of property, plant and equipment | 615 | - | 615 | - | |||||||
| Other finance costs | 75,091 | 51,568 | 219,062 | 209,702 | |||||||
| Interest paid | (77,834 | ) | (52,102 | ) | (229,608 | ) | (212,357 | ) | |||
| Interest received | 2,743 | 534 | 10,546 | 2,655 | |||||||
| Lease interest paid | (10,553 | ) | (13,528 | ) | (45,704 | ) | (59,925 | ) | |||
| Changes in non-cash operating working capital items | 478,158 | 462,987 | 319,928 | 880,497 | |||||||
| 217,497 | 108,580 | 193,546 | (302,917 | ) | |||||||
| Financing activities | |||||||||||
| Payment of lease obligations | (61,746 | ) | (63,259 | ) | (238,672 | ) | (244,943 | ) | |||
| Settlement of derivative liability | (75,861 | ) | 8,886 | (125,936 | ) | (40,656 | ) | ||||
| Proceeds from the issuance of long-term debt | 3,127,458 | - | 3,127,458 | - | |||||||
| Repayment of long term debt | (3,003,600 | ) | - | (3,003,600 | ) | - | |||||
| Transaction costs | (56,362 | ) | - | (56,362 | ) | - | |||||
| Proceeds from the exercise of warrants | 1,480,575 | - | 1,480,575 | 2,433,948 | |||||||
| Proceeds from the exercise of options | 384,812 | 44,542 | 634,052 | 675,741 | |||||||
| 1,795,276 | (9,831 | ) | 1,817,515 | 2,824,090 | |||||||
| Investing activities | |||||||||||
| Purchase of property, plant and equipment | (27,097 | ) | (37,409 | ) | (86,280 | ) | (196,320 | ) | |||
| Effect of exchange rate changes on cash | 77,045 | (61,075 | ) | 122,758 | 49,909 | ||||||
| Net cash inflow | 2,062,721 | 265 | 2,047,539 | 2,374,762 | |||||||
| Cash and cash equivalents, beginning of year | 5,684,821 | 5,699,738 | 5,700,003 | 3,325,241 | |||||||
| Cash and cash equivalents, end of year | 7,747,542 | 5,700,003 | 7,747,542 | 5,700,003 | |||||||