OTTAWA, Ont., Aug. 23, 2018 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in smart mobile forms for enterprise, today announced its second quarter (Q2) financial results for the three and six months ended June 30, 2018.

PLEASE NOTE THAT THE PRESENTATION CURRENCY HAS CHANGED FROM CANADIAN TO U.S. DOLLARS COMMENCING THIS FISCAL YEAR.

“The 5% sequential growth we recorded in Q2 extended the rebound in our revenue growth to 20% over prior year,” said Alvaro Pombo, CEO of ProntoForms. "The accelerating growth rate in recurring revenue is a result of stronger sales execution in accounts of all sizes combined with reduced overall churn. Our enterprise strategy continues to be focused at engaging larger enterprises who can provide continued growth and longer committed contract length.”

“Our platform has the key attributes that major global enterprises require, including scalability, security, and cloud integrations. Our Annual Recurring Revenue (“ARR”) base now includes 12 customers that contribute more than $100,000 of ARR each, representing 23% of the base, up from 4 customers representing 9% a year ago. This growth comes from both new enterprise customers and significant expansion from existing customers. We have also formalized arrangements with important channel partners and this is bringing us to opportunities where enterprise grade cloud-based mobile workflows are needed.”    

Financial Highlights – 2018 Second Quarter – Presented in US dollars

  • Recurring revenue in Q2 2018 increased by 19% to $2,624,680, compared to $2,204,412 in Q2 2017, and increased by 5% compared to $2,495,068 in Q1 2018
  • Recurring revenue consisted of non-operator channel recurring revenue of $1,891,488 (35% growth vs. Q2 2017 and 7% growth vs. Q1 2018) and operator channel recurring revenue of $733,192 (8% decrease vs. Q2 2017 and effectively flat vs Q1 2018)
  • Total revenue for Q2 2018 increased by 20% to $2,906,166 compared to $2,422,369 in Q2 2017, and increased by 6% compared to $2,748,548, in Q1 2018
  • Gross margin for Q2 2018 was 83% of total revenue compared to 82% in Q2 2017 and 82% in Q1 2018. Gross margin on recurring revenue was 88% for Q2 2018 compared to 91% for Q2 2017 and 89% in Q1 2018
  • Operating loss for Q2 2018 was $627,069, down from a loss of $706,239 in Q2 2017, and down from a loss of $776,701 in Q1 2018
  • Net loss for Q2 2018 was $673,814, down from a net loss of $895,675 in Q2 2017, and down from a net loss of $775,163 in Q1 2018
  • Comprehensive loss for Q2 2018 was $707,809, down from a comprehensive loss of $822,687 in Q2 2017, and $822,823 in Q1 2018
  • As at June 30, 2018, the Company’s cash and net working capital balances were $3,759,137 and $3,045,513 respectively

Recent Operational Highlights

  • ProntoForms added deep integrations with four leading enterprise business platforms and marketplaces:
    • The Salesforce App Exchange – the world’s leading enterprise cloud marketplace
    • Predix ServiceMax by GE – the leading application development platform for the Industrial Internet
    • Geotab Marketplace – leading technology platform for telematics & fleet management
    • Box Relay – an enterprise workflow tool that automates and standardizes digital business processes. Box is a leading Cloud service provider
  • $1.2M 3-Year Contract with Fortune Global 500 Company; enterprise customer expanding existing deployment to improve field operations, service delivery, and compliance

About ProntoForms Corporation
ProntoForms is a leading provider of smart mobile forms for enterprise. The Company's solution is used to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to corporate 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 lead flow the Company may receive from its partnering strategy 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, its partnering strategy may not generate increasing lead flow or maintain current lead flow levels 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 16, 2018 found at www.sedar.com for a discussion of such factors.  Please also refer to the Company’s management discussion and analysis for the quarter ended June 30, 2018 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 Comprehensive Loss    
For the three and six months ended June 30, 2018 and 2017      
(Unaudited in US dollars)   
 Three Months Ended June 30, Six Months Ended June 30,
 2018  2017  2018  2017 
 $  $  $  $ 
Revenue       
Recurring revenue2,624,680  2,204,412  5,119,748  4,368,623 
Professional and other services281,485  217,956  534,965  392,491 
 2,906,165  2,422,368  5,654,713  4,761,114 
        
Cost of Revenue       
Recurring revenue303,639  205,617  571,836  402,402 
Professional and other services203,818  230,383  421,119  426,705 
 507,457  436,000  992,955  829,107 
        
Gross Margin2,398,708  1,986,368  4,661,758  3,932,007 
        
Expenses       
Research and development1,030,752  930,297  2,084,033  1,820,704 
Selling and marketing1,406,359  1,202,642  2,812,953  2,447,497 
General and administrative588,666  559,668  1,168,542  1,136,577 
 3,025,777  2,692,607  6,065,528  5,404,778 
        
Loss from operations(627,069) (706,239) (1,403,770) (1,472,771)
        
Foreign exchange gain (loss)46,245  (61,325) 136,316  (72,587)
Interest and accretion(85,489) (101,975) (166,415) (168,942)
Change in fair value of derivative liability(7,501) (26,136) (15,108) (51,665)
Net loss  (673,814) (895,675)   (1,448,977) (1,765,965)
        
Other Comprehensive loss       
Foreign currency translation adjustment(33,995) 72,988    (81,655) 80,383 
Total comprehensive loss  (707,809) (822,687)   (1,530,632) (1,685,582)
        
Net loss per common share       
basic and diluted(0.01) (0.01) (0.01) (0.02)
        
Weighted average number of common shares       
basic and diluted  107,524,142   92,760,990    107,524,142   91,718,864 
        
Share-based compensation included in accounts:       
Cost of revenue  4,396   6,308    18,451   15,337 
Research and development  8,741   14,830    34,759   38,129 
Selling and marketing  13,599   35,014    57,533   85,908 
General and administrative  18,831   81,232    78,696   140,080 
   45,567   137,384      189,439   279,454 
        

 

      
      
ProntoForms Corporation     
Condensed Interim Consolidated Statements of Financial Position 
as at June 30, 2018, December 31, 2017, and January 1, 2017    
(Unaudited in US dollars)     
      
 June 30,  December 31, January 1,
 2018  2017 2017
 $  $ $
      
Assets     
Current assets     
Cash and cash equivalents  3,759,137   5,074,489  2,875,715 
Accounts receivable  1,253,147   1,030,803  787,394 
Investment tax credits receivable  245,286   239,130  96,952 
Unbilled receivables  83,906   111,017  63,911 
Related party loan receivable  81,598   85,649  80,030 
Prepaid expenses and other receivables  525,837   491,584  347,631 
   5,948,911   7,032,672  4,251,633 
      
Property, plant and equipment  307,840   314,920  333,664 
Intangible assets  29   7,419  43,689 
   6,256,780   7,355,011  4,628,986 
      
Liabilities     
Current liabilities     
Accounts payable and accrued liabilities  1,406,949   1,596,036  1,136,314 
Deferred revenue  1,496,449   998,117  480,866 
Long-term debt - current portion        651,409 
Derivative liability - current portion        614,948 
   2,903,398   2,594,153  2,883,537 
      
Long-term debt  2,435,460   2,484,574  1,228,338 
Derivative liability  258,192   275,361  114,863 
   5,597,050   5,354,088  4,226,738 
      
Shareholders' equity     
Share capital  20,721,783   20,721,783  16,972,146 
Contributed Surplus  995,727   757,165     
Share-based payment reserve  3,286,107   3,096,669  2,562,362 
Warrant reserve  1,145,832   1,384,394  1,081,667 
Deficit  (25,604,000) (24,155,023) (20,293,094)
Accumulated other comprehensive income (loss)  114,280   195,935  79,167 
   659,730   2,000,923  402,248 
   6,256,780   7,355,011  4,628,986 
      

 

    
    
ProntoForms Corporation   
Condensed Interim Consolidated Statements of Cash Flows  
For the six months ended June 30, 2018 and 2017   
(Unaudited in US dollars)   
 2018  2017 
 $  $ 
    
Net inflow (outflow) of cash related to the following activities:   
    
Cash flow from operating activities   
Net loss(1,448,977) (1,765,965)
Items not affecting cash   
Share-based compensation189,439  279,454 
Accretion on long-term debt69,096  65,318 
Change in fair value of derivative liability15,108  51,665 
Amortization of property, plant and equipment64,282  55,938 
Amortization of intangible asset7,390  26,580 
Changes in non-cash operating working capital items58,266  (124,753)
 (1,045,396) (1,411,763)
    
Cash flow from financing activities   
Proceeds from long-term debt    751,300 
Issuance costs related to long-term debt    (549)
Proceeds from private placement units    4,449,750 
Payment of costs related to issuing of units    (324,875)
Scheduled payments of 2012 derivative liability    (117,077)
Proceeds from the exercise of warrants    86,609 
Proceeds from the exercise of options    174,481 
     5,019,639 
    
Cash flow from investing activities   
Purchase of property, plant and equipment(72,013) (48,347)
 (72,013) (48,347)
    
Effect of Exchange Rate Changes on Cash(197,944) 77,796 
    
Net cash inflow (outflow)  (1,315,352) 3,637,325 
Cash and cash equivalents, beginning of year5,074,489  2,875,715 
Cash and cash equivalents, end of period3,759,137  6,513,040