OTTAWA, March 12, 2020 (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 periods ended December 31, 2019.
“We are pleased to report that our Annual Recurring Revenue (ARR) base grew 27% year-to-year to reach $15.74 million by December 31, 2019. Our accelerating growth continues to be driven by enterprise expansion; accounts with more than $100K of ARR now represent 36% of our base, up from 26% a year ago,” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms. “Also in 2019, our balanced sheet was strengthened with a cash infusion from warrants, showing support from our shareholders. We plan to continue re-investing our growth to compound that into new growth in the business.”
Mr. Pombo continued, “Powerful macrotrends are driving interest in our platform. These trends include workforce and talent shortages for field technicians and IT, heightened customer expectations related to service transparency, increased competition, and technology rapidly changing the maintenance and service delivery landscape. We are well positioned in the enterprise market because we help companies overcome these challenges through the quick development of customizable apps that empower field service delivery, improved data workflows and enhanced tech stacks with nimble mobile capabilities.”
Financial Highlights – 2019 Year
- Recurring revenue for the year ended December 31, 2019 increased by 27% to $13.74 million compared to $10.85 million for 2018.
- Total revenue for the year ended December 31, 2019 increased by 24% to $15.10 million compared to $12.13 million for 2018.
- Gross margin for 2019 was $12,558,762 or 83% of total revenue compared to $9,980,949 (82%) in 2018. Gross margin on recurring revenue was 90% for 2019 compared to 89% for 2018.
- Loss from operations was $1.86 million, for the year ended December 31, 2019 down from $2.38 million for 2018.
- Net loss for the year ended December 31, 2019 was $2.27 million, down from a net loss of $2.50 million in 2018.
- As at December 31, 2019, the Company’s cash and net working capital balances were $5.70 million and $3.37 million respectively.
Financial Highlights – 2019 Fourth Quarter
- Recurring revenue in Q4 2019 increased by 28% to $3.77 million compared to $2.95 million in Q4 2018, and increased by 8% compared to $3.50 million in Q3 2019.
- Total revenue for Q4 2019 increased by 23% to $4.07 million compared to $3.30 million in Q4 2018, and increased by 6% compared to $3.84 million, in Q3 2019.
- Gross margin for Q4 2019 was 84% of total revenue compared to 83% in Q4 2018 and 84% in Q3 2019. Gross margin on recurring revenue was 90% for Q4 2019 compared to 89% for Q4 2018 and 90% in Q3 2019.
- Loss from operations for Q4 2019 was $0.58 million, up from a loss of $0.47 million in Q4 2018 and up from a loss of $0.46 million in Q3 2019.
- Net loss for Q4 2019 was $0.78 million, up from a net loss of $0.41 million in Q4 2018 and up from a net loss of $0.42 million in Q3 2019.
2019 Operational Highlights
- Notable new customers and expansion progress from enterprise customers, including:
° A major utilities company that operates in the United States signed on with ProntoForms with a total contract value of $314,000.
° A Canadian energy resources company with more than $100M in annual revenue signed with ProntoForms to utilize the platform to improve field operations and compliance.
° A Global 500 healthcare enterprise expanded its use of the platform and increased its total subscriber count to more than 6,400.
° One of the largest elevator companies in the world launched a new deployment that grew its subscriber count to 12,000.
- ProntoForms earned a 4.7 out of 5 overall rating from enterprise customers in a Gartner Peer Insights “Voice of the Customer” report published December 12, 2019. The same report showed a 95% of customers “willingness to recommend.”
- ProntoForms launched Customer Readiness and Customer Satisfaction forms. The new feature improves the customer experience from pre to post site visit—all without requiring those on the receiving end to have a ProntoForms subscription.
Q4 Conference Call Date:
Date: Thursday, March 12th, 2020
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 87042374
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 042374 #
Expiry Date: Thursday, March 19th, 2020 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 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.
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, 2019 and 2018 | ||||||
| (in United States dollars) | ||||||
| 2019 | 2018 | |||||
| $ | $ | |||||
| Revenue | ||||||
| Recurring revenue | 13,740,141 | 10,850,591 | ||||
| Professional and other services | 1,363,778 | 1,281,915 | ||||
| 15,103,919 | 12,132,506 | |||||
| Cost of Revenue | ||||||
| Recurring revenue | 1,415,331 | 1,244,604 | ||||
| Professional and other services | 1,129,826 | 906,953 | ||||
| 2,545,157 | 2,151,557 | |||||
| Gross Margin | 12,558,762 | 9,980,949 | ||||
| Expenses | ||||||
| Research and development | 4,794,386 | 4,198,649 | ||||
| Selling and marketing | 6,797,303 | 5,636,138 | ||||
| General and administrative | 2,824,708 | 2,528,143 | ||||
| 14,416,397 | 12,362,930 | |||||
| Loss from operations | (1,857,635 | ) | (2,381,981 | ) | ||
| Foreign exchange (loss) gain | (80,780 | ) | 247,705 | |||
| Interest and accretion | (377,521 | ) | (354,526 | ) | ||
| Change in fair value of derivative liability | 50,458 | (11,812 | ) | |||
| Net loss | (2,265,478 | ) | (2,500,614 | ) | ||
| Other Comprehensive loss | ||||||
| Foreign currency translation adjustment | - | (87,835 | ) | |||
| Total comprehensive loss | (2,265,478 | ) | (2,588,449 | ) | ||
| Net loss per common share | ||||||
| basic and diluted | (0.02 | ) | (0.02 | ) | ||
| Weighted average number of common shares | ||||||
| basic and diluted | 112,880,284 | 107,965,926 | ||||
| Share-based compensation included in accounts: | ||||||
| Cost of revenue | 59,358 | 35,991 | ||||
| Research and development | 82,472 | 71,963 | ||||
| Selling and marketing | 148,086 | 132,796 | ||||
| General and administrative | 164,473 | 173,306 | ||||
| 454,389 | 414,056 | |||||
| ProntoForms Corporation | |||||||
| Consolidated statements of financial position | |||||||
| as at December 31, 2018 and 2019 | |||||||
| (in United States dollars) | |||||||
| December 31, | December 31, | ||||||
| 2019 | 2018 | ||||||
| $ | $ | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 5,700,003 | 3,325,241 | |||||
| Accounts receivable | 2,538,530 | 2,178,420 | |||||
| Investment tax credits receivable | 185,213 | 158,966 | |||||
| Unbilled receivables | 197,264 | 156,865 | |||||
| Related party loan receivable | 82,694 | 78,761 | |||||
| Prepaid expenses and other receivables | 1,031,390 | 523,573 | |||||
| 9,735,094 | 6,421,826 | ||||||
| Property, plant and equipment | 481,242 | 315,629 | |||||
| Right-of-use assets | 912,399 | - | |||||
| 11,128,735 | 6,737,455 | ||||||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable and accrued liabilities | 2,493,913 | 1,885,351 | |||||
| Deferred revenue | 3,562,816 | 2,254,400 | |||||
| Derivative liability - current portion | 65,041 | 59,981 | |||||
| Lease obligation - current portion | 246,517 | - | |||||
| 6,368,287 | 4,199,732 | ||||||
| Long-term debt | 2,717,146 | 2,424,136 | |||||
| Lease obligations | 745,599 | - | |||||
| Derivative liability | 61,524 | 176,009 | |||||
| 9,892,556 | 6,799,877 | ||||||
| Shareholders' equity | |||||||
| Share capital | 25,069,032 | 20,912,276 | |||||
| Contributed surplus | 864,907 | 801,888 | |||||
| Share-based payment reserve | 3,345,960 | 3,431,280 | |||||
| Warrant reserve | 692,960 | 1,263,336 | |||||
| Deficit | (28,921,115 | ) | (26,655,637 | ) | |||
| Accumulated other comprehensive income | 184,435 | 184,435 | |||||
| 1,236,179 | (62,422 | ) | |||||
| 11,128,735 | 6,737,455 | ||||||
| ProntoForms Corporation | ||||||
| Consolidated statements of cash flows | ||||||
| Years ended December 31, 2019 and 2018 | ||||||
| (in United States dollars) | ||||||
| 2019 | 2018 | |||||
| $ | $ | |||||
| Operating activities | ||||||
| Net loss | (2,265,478 | ) | (2,500,614 | ) | ||
| Items not affecting cash | ||||||
| Share-based compensation | 454,389 | 414,056 | ||||
| Accretion on long-term debt | 167,819 | 145,632 | ||||
| Accretion on lease obligations | 59,925 | - | ||||
| Change in fair value of derivative liability | (50,458 | ) | 11,812 | |||
| Amortization of property, plant and equipment | 132,615 | 118,885 | ||||
| Amortization of intangible asset | - | 7,183 | ||||
| Amortization of right-of-use assets | 269,800 | - | ||||
| Unrealized foreign exchange losses (gains) | 107,904 | (272,277 | ) | |||
| Lease interest paid | (59,925 | ) | - | |||
| Changes in non-cash operating working capital items | 880,497 | 466,071 | ||||
| (302,912 | ) | (1,609,252 | ) | |||
| Financing activities | ||||||
| Payment of lease obligations | (244,943 | ) | - | |||
| Settlement of derivative liability | (40,656 | ) | (9,500 | ) | ||
| Proceeds from the exercise of warrants | 2,433,948 | - | ||||
| Proceeds from the exercise of options | 675,741 | 111,048 | ||||
| 2,824,090 | 101,548 | |||||
| Investing activities | ||||||
| Purchase of property, plant and equipment | (196,320 | ) | (146,292 | ) | ||
| (196,320 | ) | (146,292 | ) | |||
| Effect of exchange rate changes on cash | 49,909 | (95,252 | ) | |||
| Net cash inflow (outflow) | 2,374,767 | (1,749,248 | ) | |||
| Cash and cash equivalents, beginning of year | 3,325,241 | 5,074,489 | ||||
| Cash and cash equivalents, end of year | 5,700,008 | 3,325,241 | ||||
| Cash and cash equivalents consist of the following: | ||||||
| Cash | 5,536,900 | 3,278,891 | ||||
| Guaranteed investment certificates | 163,108 | 46,350 | ||||
| 5,700,008 | 3,325,241 | |||||
| Supplementary information | ||||||
| Interest paid | 254,111 | 226,723 | ||||
| Interest received | 2,655 | 18,887 | ||||
| ProntoForms Corporation | |||||||||||||||||||||||
| Consolidated statements of changes in shareholders'equity | |||||||||||||||||||||||
| Years ended December 31, 2019 and 2018 | |||||||||||||||||||||||
| (in United States dollars) | |||||||||||||||||||||||
| Accumulated | |||||||||||||||||||||||
| Share-based | Warrant reserve | Other | |||||||||||||||||||||
| Contributed | payment | Comprehensive | Shareholders' | ||||||||||||||||||||
| Share capital | Amount | Surplus | reserve | Income | Deficit | equity | |||||||||||||||||
| Number | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Balance at December 31, 2017 | 110,192,630 | 20,721,783 | 738,395 | 3,096,669 | 1,326,830 | 272,270 | (24,155,023 | ) | 2,000,924 | ||||||||||||||
| Share-based compensation | - | - | - | 414,056 | - | - | - | 414,056 | |||||||||||||||
| Net loss | - | - | - | - | - | - | (2,500,614 | ) | (2,500,614 | ) | |||||||||||||
| Translation adjustment | - | - | - | - | - | (87,835 | ) | - | (87,835 | ) | |||||||||||||
| Expiry of warrants | - | - | 63,493 | - | (63,493 | ) | - | - | - | ||||||||||||||
| Issuance of common shares on exercise of options | 837,333 | 190,493 | - | (79,445 | ) | - | - | - | 111,048 | ||||||||||||||
| Balance at December 31, 2018 | 111,029,963 | 20,912,276 | 801,888 | 3,431,280 | 1,263,337 | 184,435 | (26,655,637 | ) | (62,421 | ) | |||||||||||||
| Share-based compensation | - | - | - | 454,389 | - | - | - | 454,389 | |||||||||||||||
| Net loss | - | - | - | - | - | - | (2,265,478 | ) | (2,265,478 | ) | |||||||||||||
| Issuance of common shares on exercise of warrants | 6,758,399 | 2,941,306 | - | - | (507,358 | ) | - | - | 2,433,948 | ||||||||||||||
| Expiry of warrants | - | - | 63,019 | - | (63,019 | ) | - | - | - | ||||||||||||||
| Issuance of common shares on exercise of options | 2,286,636 | 1,215,450 | - | (539,709 | ) | - | - | - | 675,741 | ||||||||||||||
| Balance at December 31, 2019 | 120,074,998 | - | 25,069,032 | - | 864,907 | - | 3,345,960 | - | 692,960 | 184,435 | - | (28,921,115 | ) | - | 1,236,179 | ||||||||