OTTAWA, Aug. 22, 2019 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its second quarter (Q2) financial results for the period ended June 30, 2019.

“We are pleased to report that our TTM recurring revenue continues to accelerate; growing to over 25% this quarter. Quarterly recurring revenue continued to grow well in Q2 with a 5% increase over Q1 2019. Our Annual Recurring Revenue (ARR) base grew 26% year-to-year reaching $13.71 million at June 30, 2019. Our strongest area of growth is enterprise expansion; accounts with more than $100K of ARR now represent 30% of our base, up from 23% a year ago,” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms.

Mr. Pombo continued, “We entered 2019 with a focused plan to expand our enterprise presence. As part of this strategy, we continue building our enterprise go-to-market capabilities with additional investment in product and sales expertise. Recently, a leading global IT analyst firm profiled us as a field-focused leader in the growing LCAP (low-code application platform) market segment. This multi-billion dollar market is comprised of platforms that allow IT and line of business owners to scale digital transformation by empowering non-developers to easily build apps. Recognition in this report further validates our approach of enabling enterprises to scale their field-centric automation with the use of our powerful and intuitive solution.”

Financial Highlights – 2019 Second Quarter

  • Recurring revenue in Q2 2019 increased by 26% to $3.30 million compared to $2.62 million in Q2 2018, and by 5% compared to $3.16 million in Q1 2019.
  • Total revenue for Q2 2019 increased by 26% to $3.68 million compared to $2.91 million in Q2 2018, and by 5% compared to $3.52 million in Q1 2019.
  • Gross margin for Q2 2019 was 84% of total revenue compared to 83% in Q2 2018 and 81% in Q1 2019. Gross margin on recurring revenue was 90% for Q2 2019 compared to 88% in Q2 2018 and 89% in Q1 2019.
  • Operating loss for Q2 2019 was $0.42 million, down from a loss of $0.63 million in Q2 2018 and up from a loss of $0.40 million in Q1 2019.
  • Net loss for Q2 2019 was $0.53 million, down from a net loss of $0.67 million in Q2 2018 and flat compared to a net loss of $0.53 million in Q1 2019.
  • As of June 30, 2019, ProntoForms’ cash and net working capital balances were $5.75 million and $3.79 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.

Q2 2019 Operational Highlights

  • We were recently recognized in an August 2019 LCAP Solution report produced by a prominent global IT analyst firm. We were one of eighteen leading solutions featured from a group of 200 considered companies and were the only field-focused LCAP solution in the report. The report also highlighted that by 2024 the majority of enterprises will use at least four low code platforms to support custom application needs.
  • The company hosted its first annual user conference: “EMPOWER’19”. The two-day event provided enterprise customers the opportunity to learn and exchange with peers, gain a deeper understanding of new solution capabilities, and view the platform roadmap.  
  • As part of the company’s enterprise product development plan, it achieved Service Organization Control (SOC) 2 Type 2 Certification.
  • Notable new customers and expansion progress from enterprise customers, including:
    • A global medical device manufacturer continued its contractual expansion with 2,700 additional subscribers.
    • One of America’s top five utility companies added over 600 new subscribers to improve its field operations and regulatory compliance reporting.
    • A global manufacturer of electronics and HVAC systems continued expanding its deployment, adding 500 new subscribers.
    • A European-based health sciences medical device manufacturer launched a new deployment of over 175 subscribers to manage the delivery, set-up, and maintenance of sophisticated medical devices.  
    • A leading global video streaming service company launched a new account to inspect facilities across the globe.

Q2 Conference Call Date:
Date: August 22nd, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 32792964

Recording Playback Numbers:
Local Toronto – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 051268 #
Expiry Date: Thursday, August 29th, 2019 11:59 PM

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 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 April 10, 2019 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, 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.  


PRONTOFORMS CORPORATION      
Condensed Interim Consolidated Statements of Comprehensive Loss    
For the three and six months ended June 30, 2019 and 2018      
(Unaudited in US dollars)    
  Three Months Ended June 30, Six Months Ended June 30,
  2019  2018  2019  2018 
  $  $  $  $ 
Revenue        
Recurring revenue   3,304,579     2,624,680    6,463,530     5,119,748 
Professional and other services   371,688     281,485    729,922     534,965 
    3,676,267     2,906,165    7,193,452     5,654,713 
         
Cost of Revenue        
Recurring revenue   339,635     303,639    701,074     571,836 
Professional and other services   264,038     203,818    554,792     421,119 
    603,673     507,457    1,255,866     992,955 
         
Gross Margin   3,072,594     2,398,708    5,937,586     4,661,758 
         
Expenses        
Research and development   1,245,161     1,030,752    2,285,248     2,084,033 
Selling and marketing   1,561,004     1,406,359    3,103,827     2,812,953 
General and administrative   683,665     588,666    1,364,084     1,168,542 
    3,489,830     3,025,777    6,753,159     6,065,528 
         
Loss from operations   (417,236)   (627,069)   (815,573)   (1,403,770)
         
Foreign exchange (loss) gain   (17,118)   46,245    (53,145)   136,316 
Interest and accretion   (94,808)   (85,489)   (183,851)   (166,415)
Change in fair value of derivative liability   (880)   (7,501)   (10,407)   (15,108)
Net loss    (530,042)   (673,814)   (1,062,976)   (1,448,977)
         
Other Comprehensive loss        
Foreign currency translation adjustment   -      (33,995)   -      (81,655)
Total comprehensive loss   (530,042)   (707,809)   (1,062,976)   (1,530,632)
         
Net loss per common share         
basic and diluted   (0.00)   (0.01)   (0.01)   (0.01)
         
Weighted average number of common shares         
  basic and diluted   109,926,030     107,524,142    109,165,685     107,524,142 
         
         
         
         
Share-based compensation included in accounts:        
Cost of revenue   9,616     4,396    22,341     18,451 
Research and development   13,956     8,741    32,562     34,759 
Selling and marketing   28,674     13,599    68,124     57,533 
General and administrative   30,074     18,831    70,804     78,696 
    82,320     45,567    193,831     189,439 
         

 

ProntoForms Corporation 
Condensed Interim Consolidated Statements of Financial Position
as at June 30, 2019 and 2018   
(Unaudited in US dollars)   
    
 June 30,  December 31, 
 2019  2018 
 $  $ 
    
Assets   
Current assets   
Cash and cash equivalents  5,745,437     3,325,241 
Accounts receivable  1,874,709     2,178,420 
Investment tax credits receivable  122,256     158,966 
Unbilled receivables  243,138     156,865 
Related party loan receivable  82,103     78,761 
Prepaid expenses and other receivables  1,026,513     523,573 
   9,094,156     6,421,826 
    
Property, plant and equipment  384,727     315,629 
Right-of-use assets  1,062,187     -  
   10,541,070     6,737,455 
    
Liabilities   
Current liabilities   
Accounts payable and accrued liabilities  2,264,162     1,885,351 
Deferred revenue  2,781,384     2,254,400 
Lease obligation - current portion  253,807     -  
   5,299,353     4,139,751 
    
Long-term debt  2,607,523     2,424,136 
Lease obligations  872,072     -  
Derivative liability  218,406     235,990 
   8,997,354     6,799,877 
    
Shareholders' equity   
Share capital  23,927,340     20,912,276 
Contributed surplus  864,909     801,888 
Share-based payment reserve  3,592,687     3,431,280 
Warrant reserve  692,958     1,263,336 
Deficit  (27,718,613)   (26,655,637)
Accumulated other comprehensive income  184,435     184,435 
   1,543,716     (62,422)
   10,541,070     6,737,455 
    

 

ProntoForms Corporation     
Condensed Interim Consolidated Statements of Cash Flows   
For the six months ended June 30, 2019 and 2018    
(Unaudited in US dollars)     
  2019  2018  
  $  $  
      
Net inflow (outflow) of cash related to the following activities:    
      
  Cash flow from operating activities     
Net loss   (1,062,976)   (1,448,977) 
Items not affecting cash     
Share-based compensation   193,831     189,439  
Accretion on long-term debt   79,332     69,096  
Accretion on lease obligations   31,573     -   
Change in fair value of derivative liability   10,407     15,108  
Amortization of property, plant and equipment   56,959     64,282  
Amortization of intangible asset   -      7,390  
Amortization of right-of-use assets   134,802     -   
Unrealized foreign exchange losses   57,485     -   
Lease interest paid   (31,573)   -   
Changes in non-cash operating working capital items   627,614     58,267  
    97,454     (1,045,395) 
      
  Cash flow from financing activities     
Payment of lease obligations   (119,880)   -   
Proceeds from the exercise of warrants   2,433,948     -   
Proceeds from the exercise of options   41,335     -   
    2,355,403     -   
      
  Cash flow from investing activities     
Purchase of property, plant and equipment   (126,057)   (72,013) 
    (126,057)   (72,013) 
      
Effect of exchange rate changes on cash   93,396     (197,944) 
      
Net cash inflow (outflow)   2,420,196     (1,315,352) 
Cash and cash equivalents, beginning of period   3,325,241     5,074,489  
Cash and cash equivalents, end of period   5,745,437     3,759,137