ProntoForms Reports Q2 2022 Financial Results

Reached a milestone of USD $20 million of base ARR at June 30, 2022

Kanata, Ontario, CANADA

OTTAWA, Aug. 18, 2022 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in no-code app development platforms for field teams, announced today its second quarter (Q2) financial results for the period ended June 30, 2022. All amounts are in US dollars unless otherwise stated.

“We started 2022 with a disappointing Q1. In the second half of 2021, we added new leadership followed by large changes to the sales organization. Q2 2022 showed improvement but didn’t reflect the volume that we expected. We finished Q2 with 9% annual growth in recurring revenue and 2% over Q1,” said Alvaro Pombo, Founder and Chief Executive Officer. “After the lag in bookings in the first half, we are seeing value building up. We had an important enterprise expansion in Q2 that added over $250,000 of ARR to bring that customer to over $940,000 in that quarter, and growth is expected to continue. We are seeing more new and expansion activity and are confident that we have a capable enterprise go-to-market structure that is scaling as our enterprise salespeople ramp.”

Mr. Pombo continued, “We recently passed the $20 million ARR milestone. 51% of the base now comes from enterprise-size customers (> 2,500 employees) and 41% of the base comes from customers with greater than $100,000 of ARR each. The challenge of technician enablement for enterprises is not going away any time soon.”

“I’m pleased with ProntoForms,” said Chairman Terence Matthews. “The company is experiencing unprecedented levels of business activity with partners, clients, evaluations, and contracts. Our technology comes at the right time to help our clients significantly improve agility and cost of their field automation while enabling them to continuously improve their workflows. This results in better customer and technician experience yielding higher service reliability and uptime.”

Financial Highlights - 2022 Second Quarter

  • Recurring revenue in Q2 2022 increased by 9% to $4.97 million compared to $4.55 million in Q2 2021 and increased by 2% compared to $4.89 million in Q1 2022.
  • Total revenue for Q2 2022 increased by 8% to $5.21 million compared to $4.84 million in Q2 2021 and increased by 3% compared to $5.04 million in Q1 2022.
  • Gross margin for Q2 2022 was 84% of total revenue compared to 85% in Q2 2021 and 84% in Q1 2022. Gross margin on recurring revenue was 89% for Q2 2022 compared to 90% in Q2 2021 and 99% in Q1 2022.
  • Operating loss for Q2 2022 was $1.32 million, up from an operating loss of $1.07 million in Q2 2021 and down from an operating loss of $1.49 million in Q1 2022.
  • Net loss for Q2 2022 was $1.34 million, up from a net loss of $1.12 million in Q2 2021 and down from a net loss of $1.54 million in Q1 2022.
  • As at June 30, 2022, the Company’s cash and net working capital balances were $7.52 million and $3.59 million respectively with CAD $1.84 million remaining unused on its CAD $10 million debt facility.

Recent Operational Highlights

  • A Fortune 500 oil & gas enterprise has expanded its multi-year deployment of ProntoForms to reach over 2,000 subscriptions as part of a global Master Services Agreement (MSA) where ProntoForms is the prime mobile forms solution approved for use in field operations.
  • A global heavy manufacturing enterprise increased its commitment to ProntoForms by over $250,000 ARR to reach over $940,000 ARR as a key technology driver for their full asset lifecycle business model.
  • ProntoForms launched new automation capabilities for SharePoint. In addition, the ProntoForms platform is now available on Microsoft AppSource.
  • Nucleus Research published a third-party ROI evaluation of PrimeLine Utility Services’ use of ProntoForms. They concluded that PrimeLine experienced in excess of 1,000% ROI by increasing service visibility and improving data collection. Read the report here.
  • ProntoForms CEO and Founder was the keynote speaker at Copperberg’s Field Service Forum. Mr. Pombo discussed the importance of rapidly automating processes to overcome macroeconomic challenges in the service landscape.
  • ProntoForms announced its EMPOWER’22 user conference that will take place in Austin, Texas from September 26-27.
  • ProntoForms was highlighted in the “Mobility” segment of Gartner’s Hype Cycle for Oil & Gas 2022 Report. The report identifies the solutions that technology leaders deploy in the oil & gas industry.

Q2 Conference Call Date:

Date: Thursday, August 18th, 2022
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 647-484-0475
Toll Free – (+1) 888-394-8218
Conference ID: 9129028

Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 9129028
Expiry Date: August 25th, 2022, at 11:59pm EST

About ProntoForms Corporation
ProntoForms is the global leader in no-code app development platforms for field teams. The Company's platform enables organizations to rapidly develop custom mobile apps with context and intelligence, empowering field teams to reliably complete complex work more effectively and safely.

The Company’s subscribers harness the intuitive, secure, and scalable solution to improve asset uptime and CSAT, while also reducing compliance incidents and work stoppages. 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
Babak Pedram
Investor Relations
Virtus Advisory Group Inc.

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, potential benefits of using the Company’s products, customers’ commitment to use the Company’s products going forward, the recurring nature of the Company’s revenues, 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, 2022 found at for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2021 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.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss     
For the three months ended March 31, 2022 and 2021       
(in US dollars)          
     Three months ended June 30,Six months ended June 30,
     2022  2021 2022  2021 
 Recurring revenue$4,968,802  4,550,398 9,859,517  8,856,706 
 Professional and other services 242,814  290,649 393,207  597,804 
     5,211,616  4,841,047 10,252,725  9,454,510 
Cost of revenue: (1)       
 Recurring revenue 555,304  451,556 1,107,376  845,385 
 Professional and other services 262,132  292,818 517,509  574,753 
     817,436  744,374 1,624,885  1,420,138 
Gross margin 4,394,180  4,096,673 8,627,840  8,034,372 
 Research and development (1) 1,814,774  1,880,988 3,586,525  3,692,412 
 Selling and marketing (1) 2,922,742  2,369,151 5,856,982  4,668,951 
 General and administrative (1) 973,382  911,802 1,990,756  1,805,253 
     5,710,898  5,161,941 11,434,263  10,166,616 
Loss from operations (1,316,718) (1,065,268)(2,806,423) (2,132,244)
Foreign exchange loss 29,212  (29,276)1,374  (38,950)
Finance costs (55,127) (30,072)(81,187) (58,236)
Net loss and comprehensive loss$(1,342,633) (1,124,616)(2,886,236) (2,229,429)
Net loss and comprehensive loss       
 per common share basic and diluted$(0.01) (0.01)(0.02) (0.02)
Weighted average number of common shares       
 basic and diluted 128,278,739  125,277,003 128,048,879  124,886,200 
(1) Amounts include share-based compensation expense as follows:      
Cost of revenue$5,040  2,348 5,359  3,214 
Research and development 72,550  32,790 101,667  82,866 
Selling and marketing 116,892  14,080 170,089  40,326 
General and administrative 121,355  64,019 151,088  149,368 
Total share-based compensation expense$315,837  113,237 428,203  275,774 

Condensed Interim Consolidated Statements of Financial Position    
June 30, 2022 and December 31, 2021      
(in US dollars)      
     June 30,   December 31,  
     2022   2021  
Current assets:      
 Cash and cash equivalents$7,518,063  $6,082,289  
 Accounts receivable 1,961,279   3,199,216  
 Investment tax credits receivable 154,727   117,599  
 Unbilled receivables 59,506   36,406  
 Related party loan receivable 83,382   84,757  
 Prepaid expenses and other receivables 1,468,311   907,228  
 Contract acquisition costs 250,811   273,062  
     11,496,079   10,700,557  
Property, plant and equipment 296,264   331,717  
Contract acquisition costs 123,725   157,693  
Right-of-use asset 275,829   403,143  
    12,191,897  $11,593,110  
Liabilities and Shareholders' Equity      
Current liabilities:      
 Accounts payable and accrued liabilities$2,206,842  $2,533,743  
 Deferred revenue - current portion 5,394,756   5,411,380  
 Lease obligation - current portion 306,829   303,650  
     7,908,427   8,248,773  
Long-term debt 6,316,459   3,261,825  
Deferred revenue 4,835   33,068  
Lease obligation 26,304   184,766  
     14,256,025   11,728,432  
Shareholders' equity:      
 Share capital 31,457,611   31,141,138  
 Contributed surplus 864,907   864,907  
 Share-based payment reserve 3,185,625   2,544,668  
 Deficit  (37,756,706)  (34,870,470) 
 Accumulated other comprehensive income 184,435   184,435  
     (2,064,128)  (135,322) 
    12,191,897  $11,593,110  

Condensed Interim Consolidated Statements of Cash Flows    
For the six months ended June 30, 2022 and 2021    
(in US dollars)         
     Six months ended June 30, 
     2022   2021  
Cash (used in) provided by:      
Operating activities:      
 Net loss$(2,886,236) $(2,229,429) 
 Items not involving cash:      
  Share-based compensation 744,039   275,774  
  Accretion on long-term debt      
  Accretion on lease obligations 11,435   19,349  
  Accretion of transaction costs 3,945   14,090  
  Amortization of property, plant and equipment 75,727   81,461  
  Amortization of right-of-use asset 127,314   127,314  
  Unrealized foreign exchange losses (76,033)  31,136  
 Other finance costs 77,242   44,146  
 Interest paid (86,012)  (49,840) 
 Interest received 8,770   5,694  
 Lease interest paid (11,435)  (19,349) 
 Changes in non-cash operating working capital items 301,087   847,631  
     (1,710,157)  (852,023) 
Financing activities      
 Payment of lease obligations (149,789)  (133,114) 
 Proceeds from drawdown of credit facility 3,178,124   -  
 Proceeds from the exercise of options 213,391   326,992  
     3,241,726   193,878  
Investing activities      
 Purchase of property, plant and equipment (40,274)  (36,311) 
     (40,274)  (36,311) 
Effect of exchange rate changes on cash (55,521)  75,091  
Increase in cash and cash equivalents 1,435,774   (619,365) 
Cash and cash equivalents, beginning of period 6,082,289   7,747,542  
Cash and cash equivalents, end of period$7,518,063  $7,128,177